Geron Halts Embryonic Stem Cell Research, Clinical Trial

Human embryonic stem cell colony (Clay Glennon/Univ of Wisconsin-Madison, NIGMS)

Geron Corporation, a biotechnology company in Menlo Park, California, says it has discontinued its development of therapies based on human embryonic stem cells to focus on cancer drugs. The immediate results of its decision are to end a clinical trial of its stem cell drug on patients with spinal cord injuries — the first clinical study of its kind — and to lay off 66 workers.

The company developed GRNOPC1 that contains oligodendrocyte progenitor cells derived from human embryonic stem cells and received authorization in July 2010 from FDA for a phase 1 trial of the drug to test its safety. In October of last year, Geron began recruiting participants for the trial, with a target enrollment of 10.

John Scarlett, Geron’s CEO, says the company will focus on its cancer therapies in development — the telomerase inhibitor drug imetelstat and GRN1005, a peptide-drug conjugate, both of which are now in phase 2 clinical trials. Scarlett attributes the decision to “the current environment of capital scarcity and uncertain economic conditions.” He says the company would not otherwise be able to reach “important near-term value inflection points for shareholders without the necessity of raising additional capital.”

As a result of the decision, Geron will eliminate 66 positions, which represents 38 percent of its workforce. The company, however, is seeking partners to continue its stem cell program and will keep a core group of employees from its stem cell operations through the end of the second quarter of 2012.

Geron says the spinal cord injury trial has shown so far that GRNOPC1 is well tolerated and with no adverse events. The company adds it will continue to monitor patients currently enrolled in the trial, and keep FDA updated on progress.

In May of this year, Geron received a $25 million grant from California Institute for Regenerative Medicine (CIRM) to support its stem cell spinal cord injury trial. CIRM says Geron received $6.42 million of their loan, which the company repaid in full with interest.

Read more:

• Clinical Trial of Stem Cell Therapy Underway
• California Supporting Embryonic Stem Cell Clinical Trial

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