Shares of Menlo Park, Calif.-based biotech Geron Corp. (GERN) are up more than 50 percent today after the U.S. Food & Drug Administration appeared ready to clear the way for human trials of its treatments derived from embryonic stem cells.
For investors, the real story is the FDA's decision to allow stem cell trials, rather than a nod towards the success or failure of Geron's treatments. Other stem cell treatment names including StemCells Inc. (STEM) and Osiris Therapeutics (OSIR) climbed on the news.
Still, WBB Securities upgraded Geron on the news with a price target of $19 a share from $16.50, saying that even though there's no guarantee of success for the new drugs "we believe that the large and extensive intellectual property portfolio that GERN possesses, with the Research and Development track record it has for a wide range of medical applications, gives GERN a tremendous advantage" in the human embryonic stem cell arena. Needham also upgraded the stock to a "buy."
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