DOW JONES NEWSWIRES
Geron Corp. (GERN) and General Electric Co.'s (GE) GE Healthcare
announced a global licensing deal in which the companies will team
up to develop and sell drug-discovery technologies derived from
human embryonic stem cells.
Shares of biotechnology concern Geron jumped 19% premarket to
$7.99.
In January the company received clearance from the U.S. Food and
Drug Administration for the first-ever human trial of a medical
treatment derived from embryonic stem cells.
Tuesday Geron said it is giving GE Healthcare an exclusive
license regarding the growth and differentiation of the cells.
Scientists from both companies will work on the project, with GE
Healthcare funding research and development and being responsible
for any manufacturing, sales and distribution of products developed
under the deal.
Financial terms were not disclosed.
"This agreement marks a further step in GE Healthcare's cell
technology strategy aimed at addressing the potential of stem cell
applications in the drug discovery and therapy markets," said
Konstantin Fiedler, GE Healthcare's cell-technologies general
manager.
The announcement comes as GE aims to both reposition its
health-care group as well as to align its business units to benefit
from White House priorities. About two months ago, GE unveiled a
new campaign focused on how GE is improving access and quality to
health care globally while lowering costs, The Wall Street Journal
reported. Most of GE Healthcare's revenue now comes from diagnostic
and imaging equipment. But sales are under pressure as public and
private insurers try to reduce health-care costs.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com