BioTime Proposes Buying Geron's Stem Cell Assets
Last Update: 10/18/2012 9:37:58 AM
By Saabira Chaudhuri
In an open letter, BioTime Inc. (BTX) urged Geron Corp. (GERN) shareholders to
push Geron's board to sell the company's stem cell assets to BioTime.
Geron's shares popped 7% to $1.52 in early trading.
In November of last year, Geron said it would discontinue the further development
of its stem cell programs and will eliminate 38% of its workforce as the company
aimed to focus resources on advancing two cancer drug candidates. At the time,
the company, which said it would eliminate 66 full-time positions, said it was
seeking partners with the technical and financial resources to further develop
its stem cell programs.
In its letter, BioTime said: "Nearly a year has now passed, and Geron has not
announced any transaction that would provide value to either Geron or its
shareholders from those stem cell assets."
Geron didn't immediately respond to a request for comment.
BioTime proposed that Geron would transfer its stem cell assets to a subsidiary
of BioTime, in exchange for which shareholders would receive a 21.4% stake in the
subsidiary.
BioTime said its offer, if accepted, would allow Geron shareholders to own up to
45% of a new publicly traded company that will own the Geron stem cell assets,
$40 million of BioTime stock, certain BioTime stem cell assets, and shares of
certain BioTime stem cell units.
Geron shareholders would also receive BioTime stock-purchase warrants presently
valued at about $13 million. Geron shareholders would continue to own the entire
Geron cancer therapy business through their ownership of Geron stock. |
