The pediatricians unmasked "ancestor" cells that enable the body to create cells that make up inner linings of blood vessels and internal organs.

If those endothelial stem cells can be made to heal circulation problems, not only would health care advance but the company could prosper.

The stem cells EndGenitor removes from umbilical blood and blood vessels only develop into blood vessel linings.

Yoder, who specializes in care of newborns, said the company will first sell test kits to research firms like Eli Lilly and Co. that test compounds for stopping growth of blood vessels in tumors or stimulating growth of vessels in people with poor circulation.

Joining the firm as chief executive is Ron Henriksen, a partner in the Indianapolis venture capital firm of Twilight Venture Partners.

Retired Lilly research scientist Carlos Lopez will be chief scientific officer and among the company's initial four employees.

Twilight hasn't invested in EndGenitor.

But an Indiana investor seeded the company with $500,000, and other individuals are expected to invest a total of $100,000 through 2005, Henriksen said.

The investors don't want to be identified publicly, he said.

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