Updated: Tue, Aug 14 10:21 AM EDT
http://news.excite.com/news/r/010814/10/science-stemcell-geron-lawsuit-dc
NEW YORK (Reuters) - Geron Corp., which is developing stem cells for medical research, said late Monday night it has been sued by a research foundation that is seeking to prevent Geron from gaining control over stem cell lines produced by foundation researchers
At issue are five cell lines, or groups of self-reproducing cells produced by a single parent, to which Geron claims it has exclusive rights. The Wisconsin Alumni Research Foundation, which developed the cell lines, claims Geron has no such rights.
In 1999, WARF licensed the exclusive rights to six cell lines to Menlo Park, California-based Geron in return for millions of dollars in funding. Geron also took an option to acquire rights to additional cell lines. Last month Geron sought to exercise the option.
WARF's legal complaint seeks to have Geron's exercise of the option declared not valid.
"It is important that WARF continue to license additional stem cell types to a wide variety of researchers," said Carl Gulbrandsen, WARF's managing director.
The disagreement comes just days after President Bush ruled to limit federally funded stem cell research to cell lines that are already in existence, of which the National Institutes of Health estimates there are about 60 worldwide.
The decision means scientists working in academic institutions around the world will have to sign licensing agreements with current owners of the cell lines if they wish to carry out research outside of the field prescribed by Bush.
The agreements are expected to require researchers to yield certain rights to products developed in return for access to the cells. If new drugs or other commercial therapeutics are developed from the research, the license owners could stand to gain millions of dollars .
WARF has sent a letter to Geron advising it of its action related to the disputed option and asking the biotechnology company to meet with WARF representatives to try to resolve the issues. Geron said it is prepared to do that.
Geron's existing license covers six cell lines developed by James Thomson of the University of Wisconsin at Madison. The cell lines cover hepatocytes, myocytes, neural cells, pancreatic islet cells, hematopoietic cells and osteoblasts.
Shares of Geron fell $0.41 to $14.50 in morning trade Tuesday on the Nasdaq.
http://news.excite.com/news/r/010814/10/science-stemcell-geron-lawsuit-dc
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