Geron's the Biotech of the Day

Biotechs, notably smaller-cap names with experimental therapies, have been skyrocketing lately as investors have jumped on word of any development in their research or product prospects -- even though in many cases that product might still be a long way from commercial viability.

That trend was being reinforced again on Tuesday, as Geron (GERN Quote) saw its shares rise $1.72, or 25%, to $8.68 after the company said it has received a patent that could be used in stem-cell research. The process would be used, if it's ever needed, to provide an additional level of safety for cell therapies made from human embryonic stem cells, the company said.

Human embryonic stem cells can become any type of cell in the body. Potentially, they could be differentiated or harnassed to produce therapeutic cells to treat diseases. But if transplanted therapeutic cells contain undifferentiated cells, they can form cell types that aren't needed for the therapy. Geron's patent covers a technology used to eliminate the undifferentiated cells. ...