Cell culture systems are one of the widely used systems implicated in drug testing and drug development. Recombinant cell lines, primary cells and animal models are widely used for drug development and drug testing. Stem cells have a potential use in the all stages of drug discovery processes including target identification, target validation, inhibitor screening and toxicology studies. Stem cells are capable of unlimited self-renewal and can generate physiological relevant cells through controlled differentiation. These two properties make stem cells an attractive alternative to currently used recombinant cell lines and primary cells. However, currently the use of stem cells is limited due to difficulties in directed differentiation and the cost of maintenance.