Geron in Stem Cell Settlement Talks

Geron Corp., the first company to work with stem cells derived from human embryos, said Thursday that it’s holding settlement talks with a university foundation that sued Geron over licenses to stem cell types.

Menlo Park, Calif.-based Geron hopes to resolve the dispute with the Wisconsin Alumni Research Foundation in the near future, the company said.

The suit seeks to bar Geron from exercising exclusive control over some stem cell types for which President Bush agreed to provide federal research funds. The foundation said it wants to license the cells to “a wide variety of researchers.”

The lawsuit may help determine who will profit from the use of stem cells. Derived from days-old embryos, the cells are believed by scientists to hold the key to cures for such diseases as diabetes, Parkinson’s and Alzheimer’s. Because they are “blank” cells, they can develop into just about any others made by the human body.

After the announcement of the lawsuit, Geron said it supports research into the cells by other academic groups, as long as they pay the company for the right to use the technology commercially. The foundation wants to make its own licensing agreements with other for-profit companies without Geron receiving a share of the profit.

Company officials weren’t immediately available for comment. Geron shares rose 23 cents to close at $14.55 on Nasdaq.