The isolation of human embryonic stem cells about a decade ago marked the birth of a new era in biomedical research. These pluripotent stem cells possess unique properties that make them exceptionally useful in a range of applications. Discussions about human stem cells are most often focused around the area of regenerative medicine and indeed, the possibility to apply these cells in cell replacement therapies is highly attractive. More imminent, however, is the employment of stem cell technologies for drug discovery and development. Novel improved in vitro models based on physiologically relevant human cells will result in better precision and more cost-effective assays ultimately leading to lower attrition rates and safe new drugs.