Geron Corp. announced Monday it will no longer be using embryonic stem cells in its research.
The biotech company cited financial difficulties in continuing the research, according to the Los Angeles Times. It will cut 66 jobs and halt research into potential cures for spinal cord injuries, diabetes and heart disease.
Geron will focus the rest of its resources on developing cancer drugs, the company said in its statement.
“We’re not doing this because we were souring on the field, or as a result of any problems -- we have not had any safety issues at all,” said Geron Chief Executive Officer John Scarlett Scarlett in a telephone interview with Business Week. “We need to focus our resources on advancing these phase 2 clinical trials of our two cancer drugs.”
Geron has already been conducting an early clinical trial of embryonic stem cell-based therapy for spinal cord injuries, the Los Angles Times reports. Though the four patients already participating will continue to be monitored for the treatment's safety, no new subjects will be added to the study.
Shares for Geron dropped 20 percent to $1.75 at closing, according to Business Week. Its shares have fallen 66 percent this year.
