As the first company to run a clinical trial using hESC-derived cells, Geron was once a flagship for stem cell research translation. The phase 1 trial had treated five acute spinal cord injury patients with its oligodendrocyte product, OPC1, when Geron discontinued its program in November 2011 (Nat. Biotechnol. 30, 12–13, 2012). At that time, the company shifted its business focus to telomerase-based cancer drugs, and although Geron indicated it was seeking partners for the stem cell program, there were no takers, until Thomas Okarma, who left Geron when it shelved its hESC program, and BioTime's Michael West, also a former Geron CEO, approached the company. Last November, they struck a deal. West hired Okarma to head a new subsidiary of BioTime—BioTime Acquisition (or BAC)—to incorporate Geron's stem cell assets.
According to the terms of the deal, Geron will contribute intellectual property and other assets, including the phase 1 clinical trial, to BAC. BioTime will contribute $5 million in cash, common shares, certain rights to patents and technologies, and will also pay royalties to Geron on sales of any commercialized products. A private, unnamed investor will also make $5-million equity investments in BAC and also in BioTime in conjunction with the transaction.
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