Stem-cell stocks took a hit Friday after the House of Representatives passed a bill to expand funding of embryonic stem cell research but fell short of the two-thirds vote needed to override a Bush veto. The House passed the bill, with a 253-174 vote, to lift funding restrictions on embryonic stem-cell research which were imposed by President Bush in 2001. Some researchers see embryonic stem cells as possibly promising a cure for Alzheimer's, Parkinson's and a number of other diseases. But opponents say that using the cells, which are taken from human embryos created for in vitro fertilization, amount to the destruction of human life. The president vetoed the same bill last year and promised to veto it a second time if it crossed his desk again. Shares of StemCells ( STEM) sank 8.1% to $3.08, Aastrom Biosciences ( ASTM) fell 7.5% to $1.35, Viacell ( VIAC) slid 3.1% to $5.68, and Geron ( GERN) sank 3.3% to $8.61. Meanwhile, Osiris Therapeutics' ( OSIR) shares were up 13 cents, or 0.5%, to $26.90. Earlier this week, the company was granted fast-track status by the Food and Drug Administration to expedite the development of its Prochymal treatment for Crohn's disease. Osiris is also developing stem-cell treatments for cancer and heart disease. While the House bill covers the controversial embryonic cells, a number of the stem-cell stocks falling Friday only use adult-derived stem cells for their research. And while the restrictions in question cover federal funding of embryonic stem cells, companies and universities are free to accept private funding.