Stem cell companies get endorsement from industry heavyweight (GERN, STEM, ASTM, GE)
Geron Corp. (Nasdaq: GERN) are up more than 25% in premarket trading after announcing an exclusive global licensing agreement with General Electric Co.’s (NYSE: GE) GE Healthcare.
The announcement is seen as an endorsement of the research done over the years by small-cap stem cell research companies. Rival stem cell biotechs including Stem Cells Inc. (Nasdaq: STEM) and Aastrom Biosciences Inc. (ASTM) also are rising on the news.
The GE Healthcare announcement is likely to be seen as an endorsement of the work that Geron had done on its own in bringing human embryonic stem cell-based therapies to market. The company plans to begin a Phase I trail of a therapy called GRNOPC1 for patients with thoratic injury, potentially in coming weeks.
The two companies have established a multi-year alliance program under which their respective scientists will work together to develop products for drug discovery.
GE Healthcarewill fund the R&D program and will be responsible for manufacturing, sales and distribution of products developed under the agreement. — Mike Tarsala