The American bio-tech company Xytos will set up a research and development lab in Iceland. Xytos, which recently registered on Nasdaq, will be conducting stem cell research in its Iceland lab.

"One reason we chose Iceland," owner Paul Johnson was quoted as saying in RUV, is because "they don’t have extremist religious groups trying to block this type of research."

Mr. Johnson, who is a lawyer from Chicago, and claims Icelandic heritage, said he got the idea to base Xytos in Iceland after seeing an interview with Kari Stefansson, the owner of deCODE genetics.

While Xytos will set up its R&D lab in Iceland the company will maintain its headquarters in the US.