Highlights of the important and interesting in the world of healthcare:

Stanford docs too cozy with drug companies? As medical schools wrestle with how to keep drug companies from corrupting their faculties, Stanford University often is lauded for its tough stance. But a ProPublica investigation found that more than a dozen of the school’s doctors were paid speakers in apparent violation of its policy — two of them earning six figures since last year.

Spinal fusion (and Medtronic payments) put Kentucky hospital on map. Five senior spine surgeons have helped put Norton Hospital in Louisville, Kentucky, on the map in at least one category: From 2004 to 2008, Norton performed the third-most spinal fusions on Medicare patients in the country, reports the Wall Street Journal. The five surgeons are also among the largest recipients nationwide of payments from medical-device giant Medtronic Inc.

Aastrom raises $22.5M for stem cell therapy. Aastrom Biosciences Inc. (NASDAQ:ASTM) in Ann Arbor, Michigan, has raised $22.5 million for general corporate purposes, including research and development expenses for its Phase 3 program for critical limb ischemia, a severe, chronic cardiovascular disease in the legs.

Supreme Court’s vote on health reform tough to peg. As the “individual mandate” provision in President Obama’s healthcare reform heads to the Supreme Court, the votes of the nine court justices may be tough to divine, according to a New York Times analysis.

Abbott, EpiTherapeutics work toward cancer drugs. Illinois drug maker Abbott Laboratories has agreed to work with Danish biotech company EpiTherapeutics to develop anti-cancer drugs by making small-molecule inhibitors against selected epigenetic oncology targets. Terms of the three-year research and development program were not disclosed.

Healthcare adds jobs; doctor offices shed jobs. Healthcare continued to add jobs even as the unemployment rate went up in November, according to a report in American Medical News. However, doctor offices shed employees during the month. There were 500 fewer jobs in that setting in November.

Under the manufacturing and development partnership, ATEK will supply key components and technology for use in Aastrom’s cell manufacturing process, according to the companies. The new collaboration expands upon a previous supply deal the two companies had.

Ann Arbor, Mich.-based Aastrom develops autologous cellular therapies based on a sample of a patient’s bone marrow for the treatment of severe cardiovascular diseases. Doctors deliver the therapy back to the same patient to promote regeneration of damaged tissues, according to the company.

“We expect that this collaboration will be a critical advantage for Aastrom as we move our cardiovascular programs into the final stages of clinical development. We are also very pleased to be joining with [Grand Rapids, Mich.-based ATEK] in this collaboration. We believe that this partnership will result in the creation of high-paying jobs in Michigan,” said Aastrom CEO Tim Mayleben in prepared remarks.

A rendering of the Nashville Medical Trade Center

Highlights of the important and interesting in the world of healthcare:

Nashville medical trade center key for economy. Forty-four percent of the people who took a poll by the Nashville Business Journal think their city’s medical trade center project is key for economic development so it should get state tax credits to draw tenants.

Healthcare jobs healthy now, but… The healthcare sector continues to create jobs as the economy recovers, but there are indications this may taper off, according to a report in American Medical News.

Aastrom on fast track to stem cell therapy. Aastrom Biosciences in Ann Arbor, Michigan, has gotten the Food and Drug Administration’s fast track designation for its pivotal clinical trial plan of an adult stem cell treatment to help people with severe cardiovascular disease avoid limb amputations, according to Xconomy Detroit.

Pfizer goes to India. Pfizer has turned to India’s Biocon to help it develop biosimilar insulin products to increase its global market share, paying $200 million upfront and promising another $150 million in milestone payments, according to Fierce Biotech.

Prescription drug plans and personalized medicine. While the market is driving increasing complexity in value-based prescription drug benefits, health reform and the Accountable Care Act will further shape prescription drug use and spending, according to the HEALTHPopuli blog.

Doctors on Pharma’s payroll. ProPublica has identified more than 17,000 healthcare providers (mostly doctors) who have accepted payments from pharmaceutical companies dating back to 2009, according to Consumer Reports’ Health blog.

Tim Mayleben

Tim Mayleben had a front-row seat as a board member to the shaky period two years ago when stem cell company Aastrom Biosciences was clinging to survival. Now, he’s in the driver’s seat as things are looking up for the publicly traded biotech firm.

In 2012, Aastrom (Nasdaq: ASTM) could launch its first product–a treatment that involves injecting patients with their own bone marrow stem cells to treat a serious vascular disease that can lead to limb amputation. Aastrom is looking to start a Phase 3 clinical trial of its vascular repair technology next year for the condition, called critical limb ischemia. But a short time ago, it looked doubtful whether the company could even make it to the point where late-stage clinical trials were in sight.

In April 2008, the company failed to get shareholder backing for a reverse stock split that it deemed “vital to the future of the company.” After that failure, the company acknowledged its future was in doubt and it was in danger of being de-listed from the Nasdaq Stock Market.

But in just the last few months, Aastrom completed the critical reverse stock split and returned to Nasdaq’s good graces. In addition to its vascular repair work, Aastrom is in the midst of a Phase 2 trial investigating its technology in repairing heart cells. In that trial, Aastrom is treating patients suffering from dilated cardiomyopathy, a severe form of congestive heart failure in which the heart becomes weakened and enlarged, and cannot pump blood efficiently.

Mayleben, who’s sat on Aastrom’s board since 2005, took over as chief executive in December. He spoke with MedCity News about how the company”s technology works and what he learned watching up close as Aastrom teetered on the brink of collapse.

Q: Talk a little bit about exactly how Aastrom’s technology works.
A: We call our development platform tissue repair cell technology or TRCs. We start with a small amount of bone marrow, about 3 tablespoons, that’s taken from a patient’s hip and done in a 15-minute outpatient procedure. That sample of marrow contains cells known to play a role in the natural healing process. We then put those cells into our proprietary cell processing system and we significantly expand the population of mixed stem and progenitor cells that support the regeneration of tissue.

That process takes about 10 to 12 days. When it’s done, we have a rich and diverse population of early stem and progenitor cells that promote the healing of vascular and cardiac tissues. It’s important to note that we work with adult stem cells derived from patients, so we don’t have any of the ethical issues involved with the use of embryonic stem cells, or issues with rejection.

Q: What’s the biggest challenge facing Aastrom right now?
A: The biggest challenge for Aastrom is that a lot of people in the life sciences industry think stem cell therapies are many years away from being commercialized. At Aastrom, we don’t think we’re that far away. We’ve enrolled the last patients in both our Phase 2b study of critical limb ischemia and another study of  dilated cardiomyopathy. We’ll report our six-month results this year and plan to start a Phase 3 in 2011. That’s the last step before FDA [Food and Drug Administration] review and approval.

We can’t predict exactly when our products will be on the market because the FDA has final say in when things will be approved. Meantime, we can say we’re moving full-steam ahead in developing our products.

Q: Why was it important to continue being listed on Nasdaq?
A: One of the things I’ve learned from being at public companies is that when you’re public, you can attract far greater institutional ownership of your shares. That’s really important for us to continue to get recognized. You’re exposed to a much broader population of investors. That leaves us really well positioned to execute on our clinical development programs and transition to commercialization.

Q: Having served on Aastrom’s board in 2008 when the company’s future was in question, what’s the most important thing you learned from that experience that you bring to your role as CEO?
A: In my experience, most biotech companies go through one or more of those difficult periods. The most important thing we keep in mind is the patients who will be helped by our therapy. Our focus is on improving the lives of critical limb ischemia and dilated cardiomyopathy patients who have no other treatment options for their disease. We have to get through the tough times and the good times, so we just focus on the patients.

The milestone clears the way for Aastrom to report six-month interim results of the trial later this year, according to a statement from the company.

In the trial, Aastrom treated 40 patients suffering from dilated cardiomyopathy, a severe form of congestive heart failure in which the heart becomes weakened and enlarged and cannot pump blood efficiently.

Aastrom’s technology involves producing cardiac-repair cells from a patient’s own bone marrow stem cells and then injecting them into the wall of a patient’s left ventricle, according to the statement. The trial’s primary objective is to determine whether it’s safe to use Aastrom’s technology to treat dilated cardiomyopathy patients, but the company will also measure the treatment’s efficacy.

Last month, the company announced plans to proceed with a separate Phase 3 clinical trial. In that trial, Aastrom will use a patient’s own bone marrow stem cells to treat critical limb ischemia, which results from decreased blood supply to a limb and is often the endpoint of peripheral arterial disease.

In December, the stem cell company was granted an extension until March 31 from being delisted.  The company said its stock would have to trade above $1 for 10 consecutive days before that date, or it would face delisting.

Aastrom’s share price rose slightly in early trading Friday to $1.50. It has closed above $1 on every trading day since Feb. 18, when the company completed a 1-for-8 reverse split that was designed to keep Aastrom in compliance with Nasdaq’s $1 rule.

The company is in the midst of two clinical trials, one for the repair of vascular cells and the other for cardiac regeneration.

Critical limb ischemia results from a decreased blood supply, is often the endpoint of peripheral arterial disease and can lead to amputation.

Aastrom said it will proceed with the Phase 3 trial of its vascular repair cells after it reported positive safety results from a Phase 2b trial. In the phase 2b trial, patients were treated with Aastrom’s “experimental” therapy developed using their own bone marrow stem cells. The trial’s interim results show patients who received Aastrom’s treatment over time exhibited fewer “treatment failure” events such as amputations, or a doubling in wound size, according to a statement from the company.

The company is also in the midst of clinical trials of its cardiac regeneration therapy, which uses a patient’s own stem cells to repair and regenerate damaged heart tissue.

Last week Aastrom completed a a 1-for-8 reverse stock split that has so far achieved its desired effect of pushing the company’s share price above $1 so it can remain listed on the Nasdaq stock exchange. The company’s stock was trading at $1.46 late Wednesday morning.

The stem cell company announced the reverse split earlier this month, sending its shares down below 20 cents. However, its shares subsequently rose and were trading around $1.66 early Thursday afternoon, up about 9 percent on the day.

In December, Nasdaq granted Aastrom an extension until March 31 from being delisted. Aastrom’s stock price must close above $1 for at least 10 consecutive business days before that date to avoid delisting, the company said at the time. The company’s shareholders authorized plans for a reverse split that month.

The reverse split was also intended to draw greater interest in the company from institutional investors, Aastrom said.

Aastrom is developing products that use a patient’s own stem cells to treat a variety of conditions, including arterial disease and chronic heart failure. The company went public in 1997. Last month, the company raised $12.4 million in a public stock offering.

Aastrom said earlier this month that it’s in the midst of “late-stage” clinical trials of its cardiac and vascular-repair technologies.

The news promptly sent the company’s shares tumbling to a 52-week low of 16.5 cents, though its stock price did rebound somewhat. As of midday Tuesday, Aastrom shares were down 15 percent to 18 cents.

In December, Nasdaq granted Aastrom an extension until March 31 from being delisted. Aastrom’s stock price must close above $1 for at least 10 consecutive business days before that date to avoid delisting, the company said at the time. The company’s shareholders authorized plans for a reverse split that month.

Under the terms of the split, every eight shares outstanding prior to the opening of trading on Feb. 18 will be combined into one share with no change in their par value, according to a statement from Aastrom. After the split, there will be 28.3 million shares of common stock outstanding.

Aastrom is developing products that use a patient’s own stem cells to treat a variety of conditions, including arterial disease and chronic heart failure. The company went public in 1997. Last month, the company raised $12.4 million in a public stock offering. When the company announced the pricing of that offering, its shares tumbled to what was then a 52-week low.

“We believe a reverse stock split will help our shares reflect the value we are creating through our clinical programs and help us attract more institutional ownership of our stock,” said Chief Executive Tim Mayleben.

Mayleben said the company is in the midst of “late-stage” clinical trials of its cardiac and vascular repair technologies. In May, Aastrom halted the cardiac regeneration trial when a patient died after being released from the hospital following the trial, but later restarted it. The Food and Drug Administration later determined that the patient’s death was not related to Aastrom’s treatment.

Mayleben said Aastrom plans to report the results of the vascular trial that focuses on patients suffering from a condition known as critical limb iscehmia later this month. Critical limb iscehmia includes decreased blood supply to the limbs. The company will announce results of the cardiac trial later this year.

In its most recent financial disclosure, the company reported a loss of $3.9 million on revenue of $27,000 for the quarter ended Sept. 30.

Aastrom, which is developing therapies that use stem cells to treat a number of chronic cardiovascular diseases, priced its shares at 26 cents per unit and hopes to raise $10.9 million from the offering. The pricing announcement sent the company’s shares plummeting as low as 22 cents Friday morning, before they rebounded slightly. Aastrom’s stock closed Thursday at 34 cents.

Aastrom said it plans to use the offering’s proceeds to fund operations and further clinical development of its stem-cell therapies.

The offering was underwritten by Oppenheimer & Co. and is expected to close Jan. 21, according to a statement from the company.

Aastrom is developing products that use a patient’s own stem cells to treat a variety of conditions, including arterial disease and chronic heart failure. The company went public in 1997.

It’s been a bumpy ride recently for Aastrom. In December, the company was granted an extension until March 31 from being delisted from the Nasdaq stock exchange.  The company’s stock must trade above $1 for 10 consecutive days before that date, or it will be delisted. In its most recent financial disclosure, the company reported a loss of $3.9 million on revenue of $27,000 for the quarter ended Sept. 30.

In May, Aastrom halted a Phase 2 cardiac regeneration trial when a patient died after being released from the hospital following the trial. The trial, for patients with severe chronic heart failure, has been restarted. The company also is currently conducting a Phase 2b vascular regeneration clinical trial in patients with severe peripheral arterial disease.

Tim Mayleben, who has served on the company’s board since 2005, began his tenure as Aastrom’s new chief executive in December. Aastrom’s previous CEO, George Dunbar, earlier this month joined Ann Arbor venture-capital firm Arboretum Ventures.

Dunbar, who stepped down from Aastrom last month, will help the venture firm uncover new investment opportunities and work with executives from Arboretum’s portfolio companies, according to Tim Peterson, the firm’s managing director. Publicly traded Aastrom is a stem cell firm developing treatments for cardiovascular disease. The company has several products in clinical trials.

Founded in 2002, Arboretum manages about $97 million in capital. The firm had a major exit last year when one of its portfolio companies, University of Michigan spin-off HandyLab, was acquired by Becton, Dickinson and Co. for $275 million. HandyLab‘s “Jaguar” device helps doctors identify infections. Another recent exit for Arboretum happened in October 2008, when Johnson & Johnson purchased HealthMedia Inc. (pdf), which develops web-based, wellness-coaching software.

Arboretum’s current portfolio includes St. Louis-based telemedicine-services company Advanced ICU Care, Ann Arbor-based Accuri Cytometers, which develops cell-analysis products and Chagrin Falls, Ohio-based Cervilenz, which is developing a device to help obstetricians identify women at risk for preterm birth.