A novel approach to treat post-menopausal osteoporosis is proposed by engineering cell lines for the secretion of human calcitonin (hCT) and which would then be suitable for implantation in different allogeneic hosts. Mouse myoblast were transfected with the cDNA for hCT using the liposome-based gene delivery technique and clones secreting of human calcitonin were isolated. Human calcitonin expression was detected by ELISA. Western blot and immunohistochemical analyses also confirmed the plasmid, pcDNA3-hCT, had been transfected into the cells. Upon enclosure in microcapsules, which are biocompatible membranes that permit exit of therapeutic proteins but not entry of immune mediators, the myoblasts continued to secrete human calcitonin into the culture medium. These results demonstrate the feasibility of using these encapsulated recombinant myoblasts to deliver human calcitonin and the potential of allergenic gene therapy for postmenopausal osteoporosis.