Method of preparing lung alveolar epithelial type II cells derived from embryonic stem cells

1. A method of preparing a population of in vitro cultured cells of alveolar epithelial type II (ATII) cell lineage derived from at least one embryonic stem cell, comprising;

(a) culturing said at least one embryonic stem cell, wherein said at least one embryonic stem cell comprises a transgene operably linked to a cell-specific promoter, in vitro in a medium comprising MATRIGEL® (a gelatinous protein mixture secreted by Engelbreth-Holm-Swarm (EHS) mouse sarcoma cells), to produce differentiated cells without formation of an embryonic body, wherein at least some 99% of said differentiated cells are of ATII cell phenotype;

(b) identifying said differentiated cells of ATII cell phenotype by detecting expression of at least one biomarker of ATII cells;

(c) isolating the differentiated cells having ATII cell phenotype; and

(d) cloning the isolated cells to produce a population of cells having ATII cell phenotype.

2. The method of claim 1 wherein said at least one biomarker comprises surfactant protein C.

3. The method of claim 1 wherein said at least one biomarker comprises cystic fibrosis transmembrane conductance receptor.

4. The method of claim 1 wherein said at least one biomarker comprises α-1-antitrypsin.

5. The method of claim 1 wherein said at least one biomarker comprises complement protein C3 or C5, or both.

6. The method of claim 1 wherein said transgene comprises a drug resistance gene that, when expressed, is capable of imparting resistance to said drug in said stem cell or progeny thereof.

7. The method of claim 1 wherein in (c), isolating the differentiated cells having the ATII cell phenotype comprises selecting a purified population of differentiated cells wherein at least 99% of the cells have ATII cell phenotype.

8. The method of claim 1 wherein in (d), cloning the isolated cells to produce a population of cells having ATII cell phenotype comprises producing a population of more than 10 6 cells within 15 days of differentiation, wherein at least 99% of said population have ATII phenotype.

9. An in vivo method of repairing injured or diseased alveolar epithelial tissue in the lung of a mammal, comprising transplanting into said lung, at a site comprising injured or diseased alveolar epithelial tissue, a population of differentiated embryonic stem cells, or progeny thereof, at least 99% of which have ATII phenotype, wherein said population of cells is prepared in accordance with the method of claim 1 , and is effective to repair at least a portion of said injured or diseased alveolar epithelial tissue at said site.

10. The method of claim 9 wherein said at least one said differentiated embryonic stem cell, or progeny thereof, comprises a transgene operably linked to a cell-specific promoter, wherein said transgene encodes a therapeutic gene product.

11. An in vivo method of treating a genetic disease affecting alveolar epithelial tissue in the lung of a mammal, comprising transplanting into said lung, at a site comprising alveolar epithelial tissue detrimentally affected by said genetic disease, a population of differentiated embryonic stem cells, or progeny thereof, at least 99% of which have ATII phenotype, wherein said population of cells is prepared in accordance with the method of claim 1 , and said transgene encodes a gene product that ameliorates the detrimental effects of said genetic disease in said alveolar epithelial tissue.

12. The method of claim 11 wherein said at least one differentiated embryonic stem cell, or progeny thereof, comprises a transgene operably linked to a cell-specific promoter, wherein said transgene encodes a therapeutic gene product.

13. The method of claim 6 , wherein the transgene is a human SPC promoter-Neo r fusion gene.

14. The method of claim 13 , wherein said culturing further comprises adding about 20 μg/ml of G418 to said medium on about day 6 of culturing.

15. The method of claim 6 , wherein the transgene encodes a therapeutic product.