Thursday, August 24, 2006

Stem Cell Stocks Jump on ACT News

This is the kind of news that really captures the attention of those timid souls known as venture capitalists, who have shied away from stem cell enterprises.

On the day Advanced Cell Technology of Alameda, Ca., announced its new method of extracting stem cells from embryos, its stock more than quadrupled. Of course, it did not have far to go. The stock climbed from 42 cents to 1.83. Today the stock closed at $1.60.

The Wall Street Journal reported this afternoon that the ACT news also "pushed up shares of the four largest publicly-traded stem-cell researchers. StemCells advanced six cents, or 2.7%, to 2.31; Aastrom Biosciences added one cent to 1.20; Geron rose 31 cents, or 4.9%, to 6.67; and ViaCell jumped 19 cents, or 5%, to 4."

The 52-week low for ACT's stock price is 26 cents and its 52-week high is $2.95.

Earlier today, reporter David Hamilton wrote in the WSJ:
"Larger pharmaceutical and biotechnology companies have mostly steered clear of the field, in part because of the ethical controversy and the lack of federal research support. Advanced Cell Chief Executive William Caldwell, however, said he believes an embryo-safe method of deriving stem cells may help spark large-company interest in the area.

"'I think this is going to help address the problem and the issues they have' with stem-cell derivation, Mr. Caldwell said. Advanced Cell, which is currently raising new funds in a private offering to bolster its meager cash reserves, hopes to sign a development partnership with a larger company by the end of the year."
At mid-afternoon Thursday, the story on ACT in the WSJ did not make the paper's top 10 lists in either the most viewed or most e-mailed categories. But among Web readers of the New York Times, the story was the No. 5 most blogged and No. 6 most e-mailed. At the Los Angeles Times, it was the No. 8 most e-mailed stories but not in the top 10 of most viewed. At the Washington Post, it was the No. 12 most e-mailed story. Sphere: Related Content

1 comment:

  1. Note that the journal Nature had to issue a correction on its news release accompanying the ACT publication in Nature.

    All was not as it seemed to be. Although the paper in Nature is accurate, some discussions in newspapers, which are based on the press release (not the paper), are NOT accurate. For example, the blastocyst used to create the stem cell line in the paper was in fact destroyed.

    See post on IPBiz.

    Even this revised coverage does not discuss the criticism of the ACT work by British scientists.

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