GE unit unveils alliance with Geron - Healthcare groups to develop stem cell technology

GE unit unveils alliance with Geron - Healthcare groups to develop stem cell technology
By Andrew Jack in London
Copyright The Financial Times Limited 2009
Published: June 30 2009 13:38 | Last updated: June 30 2009 13:38
http://www.ft.com/cms/s/0/7cb28eda-656d-11de-8e34-00144feabdc0.html


General Electric on Tuesday unveiled an exclusive alliance with Geron, the US biotechnology company, which could lead to the first significant commercial application of stem cells as soon as next year.

GE Healthcare will develop Geron’s expertise to build tests for medicines derived from human embryonic stem cells. The tests are designed to identify any toxic effects of experimental medicines, and will be sold to drug developers.

The move marks fresh momentum in long-term efforts by biotechnology groups to shift away from a heavy reliance on animal testing for new treatments. The tests could thus save time and costs in drug development, as well as ease criticism from animal rights activists.

It comes at a time when a number of biotech companies including iZumi Bio and Cellular Dynamics International are developing stem cell-related technology which could be used to help improve drug development by identifying the risks of treatment.

Other groups are using highly complex computer models in early tests to simulate the reaction of humans to new drugs as an alternative, although there is no prospect in the coming years that either approach would entirely replace tests on animals.

GE’s new alliance represents the most ambitious partnership so far using stem cell technology, signifying its confidence in what is still a niche market. It is part of an expanding range of its offerings for drug developers.

“This will be the first real economic application of stem cells,” said Konstantin Fiedler, general manager of cell technologies at GE Healthcare. “We’ll not be the only one out there but we’re very confident we will be one of the main players. We see a significant market opportunity.”

The company stressed it would not enter the arena of drug development, but has recently signed a series of partnerships with pharmaceutical companies to use its diagnostic equipment in the study and treatment of disease. It also offers instrumentation, software, reagents, training and technical support to its clients.

Geron this year became the first company to win US regulatory approval for a clinical trial examining its stem cell treatment in humans – those with severe spinal cord injuries. The group has well-established expertise in this field, allowing it to manufacture and differentiate human embryonic stem cells into specific cell types.

The initial tests of experimental drugs developed by the two companies for launch next year will help identify any effects on the heart, and a second test will look at effects on the liver – two vital organs studied closely by pharmaceutical companies and regulators.

GE and Geron would not disclose the financial terms of their alliance, which will involve some upfront payments by GE, as well as milestones and royalties for successful development and sale of the products.

David Earp, senior vice-president of business development at Geron, said: “Geron is intensely focused on developing human embryonic stem cell-based therapies and the expertise we have developed in scaleable manufacturing and differentiation … is directly applicable to the production of these cells for drug discovery.”