Good stem cell companies will get the funding they need to bring their products to market, financial and medical executives said at this year's Stem Cell Meeting on the Mesa.

Biotech companies continue to attract investor interest, speakers said at the meeting this week in La Jolla, pointing to a stream of biotech initial public offerings as well as purchases of biotechs by large pharmaceutical companies.

However, there's a catch: Companies may get a lower value than they seek.

The field of stem cell therapies, also known as regenerative medicine, is making the transition from pure science to clinical medicine. San Diego's Cytori Therapeutics is testing a device to harvest a patient's stem cells for treating heart diseases and repairing tissue defects. And in a much-watched trial, a cure for HIV infection is being tested by Sangamo BioSciences, based in Richmond.

The challenge for stem cell companies is to convince investors that their science is actually geared toward products that can be sold, said Ted Roth, president of Newport Beach-based Roth Capital Partners. Compared with 20 years ago, investors are much more sophisticated and aren't dazzled by technology, he said.

"How can you convince me this is not a science project?" is the question these companies need to answer, Roth said.

Those that convince investors can do very well, Roth said, citing recent examples. Stemline Therapeutics, for example, held its IPO at $10 a share in January. At the close of trading on Monday, Stemline shares closed at $36.52. Stemline is developing treatments to eliminate cancer stem cells.

On a smaller scale, Roth Capital helped Carlsbad-based International Stem Cell Corp. raise $3 million this summer, Roth said. International Stem Cell is developing a treatment for Parkinson's derived from parthenogenetic, or unfertilized, human egg cells.

Roth spoke at a Monday afternoon discussion on financing regenerative medicine. His colleague on the panel, Karl Handelsman, concurred.

"If you can make a strong quality business case, you can always raise money," said Handelsman, founder of Codon Capital.

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Stem cell businesses keep growing