Geron shares rise as GE Healthcare launches line of heart muscle cells for drug research

Geron shares rise on toxicology screening product

NEW YORK — Shares of stem cell drug developer Geron Corp. rose Tuesday after Geron said GE Healthcare is now selling a toxicology screening product the companies developed together.

THE SPARK: Geron said the General Electric Co. unit launched a line of human cardiomyocytes, or heart muscle cells. The cells will be used to determine if experimental drugs cause heart damage or other cardiac side effects. Geron said the cardiomyocytes are derived from a government-approved line of embryonic stem cells.

Geron said the human cardiomyocytes can be more sensitive than current tests, which are based on animal cells.

THE BIG PICTURE: Geron entered a partnership with GE Healthcare in June 2009, and said most of its revenue last year came from that partnership. The company reported $1.7 million in revenue for the year.

Geron gets all of its revenue from collaborations and license agreements. The Menlo Park, Calif., company is developing a stem cell therapy as a treatment for spinal injury. It is preparing to start testing its treatment on humans, meaning the therapy is years away from reaching the market.

SHARE ACTION: Shares rose 18 cents, or 3.5 percent, to $5.35 in afternoon trading. Geron shares have traded between $4.37 and $7.18 over the past year.