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Stem-Cell Researchers Rise Sharply With Obama Funding Hopes
Nov 10, 2008 11:13:15 (ET)
NEW YORK (Dow Jones)--Shares of stem-cell technology companies rose Monday as it appeared more likely that President-elect Barack Obama would quickly move to increase funding and support for the research.
Over the weekend, top Obama advisers and transition-team members told news agencies that the president-elect is considering repealing restrictions on stem-cell research funding, including those governing which companies receive funds and what type of research is allowed. They said he could use his executive powers without waiting for the outcome of a potentially heated congressional debate.
Stemcells Inc. (STEM) shares recently rose 18%, or 31 cents, to $2.06 in recent trading, while Geron Corp. (GERN) jumped 37 cents, or 9%, to $4.38. Smaller firms were also boosted though, with Neuralstem Inc. (CUR) climbing 13%, or 23 cents, to $2.07 and Aastrom Biosciences Inc. (ASTM), Advanced Cell Technology Inc. (ACTC) and Thermogenesis Crop. (KOOL) also on the rise.
"The basic nature of this is it will allow freedom for every researcher in the U.S. that has ever taken a nickel of funding to go out there and have unfettered research," said Steve Brozak, president of WBB Securities. "It's as if we have come out of the dark ages."
Democratic congressional leaders have vowed to push a twice-vetoed stem-cell research bill as one of the first acts of the next Congress, but the possibility of the president-elect moving even faster seemed to jump-start the companies Monday morning.
The Bush administration had restricted research using controversial embryonic-stem cells and held back federal funding to support the work, but it is widely assumed Obama will strike down the restrictions for the procedure, potentially creating millions in new funding and support for research that some have said has enormous potential.
But for many researchers that funding may be coming too late, meaning Monday's exuberance could be overdone. Eight years of restrictions have led scientists and companies to work around embryonic-stem cells and instead focus on adult-stem cells and already delineated cells that can be transformed and molded to help heal organs and tissues.
Embryonic cells are still full of unsolved problems and issues that scientists have yet to tackle given the lack of research done in the past eight years, and those companies that particularly specialize in embryonic cells are much smaller.
"I think a couple of things have changed in the landscape, one is the realization that embryonic stem cells may not be the best pathway," said Jason Kolbert an analyst at Susquehanna Financial Group. "It may make a lot more sense to use cells that are already delineated.
"In an Obama administration, some of the bans we've experienced in embryonic research are going to be lifted, and there is great hope in that as well," Kolbert said. "But I believe there is much more near-term promise from adult stem cells."
-By David Benoit, Dow Jones Newswires; 201-938-2472; david.benoit*dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/al?rnd=IDbR9DERIRN9iLRqXQUEig%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
November 10, 2008 11:13 ET (16:13 GMT)
derek111c
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Own them all except for KOOL. Don't know much about them.
derek111c
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mean don't know much about KOOL.
Own STEM, ASTM, GERN, CUR, ACTC
Looking at PSTI
AJGrano
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In ACTC * .038 but only for about 5k shares. I'm thinking about holding for a while just because its not that much invested but we'll see how it goes
derek111c
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yea been buying for a while so avg in about .035.
STEM selling shares at a discount today didnt't help the sector, but at least its showing their is institutional demand for the sector right now.
NaturalResources
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quote:Originally posted by IMAKEMONEY: FLIPPER!!
I agree with you on this one, I lost trying to hold ACTC after it had a big "pop" a year or two ago. Haven't done any DD in a long time, but if history is repeated, get in and get out.