InVivo Therapeutics Holdings Corp. (NVIV); Geron’s Exit from Stem Cell Research Bodes Well for the Company
By Mark Spencer
Published: November 16, 2011 12:06:48 PM PST
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GERN
$1.62-$0.13-7.43%
NVIV
$1.90+$0.59+45.04%
Geron Corporation (NASDAQ: GERN), an undisputed leader in stem cell research, earlier this week announced that it is scrapping its stem cell research program due to high costs and commercial uncertainty for the field.
Geron said on Monday that it would not enroll new patients for study of a stem cell-based treatment for spinal cord injury. The company also said that it is planning to sell its stem cell program.
Geron was a pioneer in stem cell research and the company also had the necessary cash on its balance sheet to conduct research. Geron’s departure is a huge blow to the field of stem cell research. However, the move bodes well for one company; InVivo Therapeutics Holdings Corp. (OTC: NVIV), a Cambridge, Massachusetts-based biotechnology company. No surprise that InVivo shares have gone through the roof since Geron’s announcement to exit stem cell research.
Like Geron, NVIV is also developing a stem cell-based therapy for treatment of spinal cord injury. NVIV is currently developing a novel biopolymer scaffolding device to treat spinal cord injury.
So why is Geron’s departure good news for InVivo? One simple reason; investors who were looking to gain exposure to the fast growing field of stem cell research were betting mainly on Geron as the company was considered a leader in the field. But, with Geron now gone, investors have very limited options if they seek to gain exposure to stem cell research and NVIV is one of them. The surge in NVIV shares this week suggests that some of the investor money from Geron has already moved into the company.
NVIV is a pure-play stem cell research company. More importantly, it is focusing on the same area, spinal cord injury, like Geron. Recently, NVIV even appinted Dr. Edward Wirth, who was the Medical Director for Regenerative Medicine at Geron and led the first ever human embryonic stem cell trial, as its new Chief Scientific Officer.
On Tuesday InVivo provided an update on its business. The company said that it has submitted an IDE and is awaiting FDA clearance to begin a human clinical study with its proprietary biopolymer scaffolding device for acute spinal cord injury.
