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Pig cells that produce insulin are injected into diabetes patients, reducing their need for regular insulin doses.
Human trials of an earlier version of the technology were stopped here in 1996 because of fears they could lead to pig retroviruses infecting the human population.
An application to restart the trials is before Health Minister Pete Hodgson.
A New Zealand-based diabetes treatment that uses pig cell transplants in humans is reporting promising results.
Two Russian diabetics have been injected with insulin-producing cells from piglets, cutting their insulin dosage by at least a quarter.
"That would be outside any variation you might see from a change of lifestyle - eating less, exercising more or anything like that," said Professor Bob Elliott, medical director of Living Cell Technologies. "I think we're on to a winner here, and I'm very excited by the response."
The preliminary data augurs well for a similar trial the company plans to run at Middlemore Hospital on eight patients.
Living Cell's application for a NZ trial is now with Health Minister Pete Hodgson, who has the final say on whether testing on human patients that was halted in 1996 can resume.
"We've done as much as we can in satisfying all the regulators," Professor Elliott said. "It's a great opportunity for New Zealand if it does go ahead, because we are clear world leaders on this.
"I sure hope that we are able to do the trials and subsequently the treatments here in New Zealand. It would almost compensate for the loss of the All Blacks, wouldn't it?"
Professor Elliott had hoped to announce results of the Russian trial next year, when all six patients had received the pig cells. But rumours circulating around the early results forced the Australian stock exchange-listed company to release the data.
Two Russian patients, a 26-year-old man and a 40-year-old woman, have received their first transplant of the smallest dose of pig cells (5000 islet equivalents), which is equivalent to one-third of the maximum dose planned for testing in New Zealand.
The man was injected with his first dose in June and the woman was implanted last month at Moscow's Sklifasovsky Institute.
Despite both having to receive one more transplant, each recipient has exceeded the 25 per cent reduction in insulin requirements expected at follow-up checks at one and three months after transplantation.
Professor Elliott says the New Zealand trial, if it goes ahead, will essentially follow the same process. The results of both studies will then be compared to find optimum dosing.
The treatment involves taking clusters of insulin-producing cells from the pancreas of newborn piglets, coating them in a seaweed-based gel and inserting the pinhead-sized capsules into the abdomen of a patient with type-1 diabetes, which affects about 11,000 New Zealanders.
Human trials of an earlier version of the technology developed by Professor Elliott were halted in 1996 because of fears the transplants could lead to pig retroviruses infecting the human population.
This month, Wellington lobby group the Sustainability Council called on the Health Minister to hold widespread public consultation before approving xenotransplantation over similar fears.
But participants in the early trial have supported the technology. One, Aucklander Michael Helyer, was tested again last year and found that pig cells were still producing some insulin for him.
