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Stem Cell Stocks Hit by Negative Court Ruling--GERN and GENZ Best Positioned

|Includes: ABT, Geron Corporation (GERN), SNY

Right before the close today (August 23), a preliminary injunction was issued by a US District Court stopping the federal funding of human embryonic stem cell research

Judge Royce Lamberth granted the injunction after finding that the lawsuit would likely succeed because the guidelines violated law banning the use of federal funds to destroy human embryos. A Reuters article said, "The unusual suit against the National Institutes of Health, backed by some Christian groups opposed to embryo research, argued that the NIH policy violates U.S. law and takes funds from researchers seeking to work with adult stem cells."The Federal Governmentt has the option to appeal the decision or try to rewrite the guidelines to comply with U.S. law.

Any  selloff in the names that have an interest in stem cells
could be an opportunity for those traders that have some risk tolerance. Companies like Geron (Nasdaq:GERN) and Genzyme (Nasdaq:GENZ) which are not associated as pure plays in the Stem Cell sector may offer a profitable trade or entry.


Disclosure: No positions