Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR) is down over 5.5% at $9.79 after the FDA said it needed more time to review its Supplemental New Drug Application for its Acthar decision for infantile spasms.

Dendreon Corporation (NASDAQ: DNDN) is playing a 2% game of giveback today and shares are down at $40.99.  There has been some steady hope of a deal here on and off coming down the pipe, but the Medicare review period over reimbursements (a possible price shakedown) is a steady thorn in the side of PROVENGE in the fight against prostate cancer.

Sinovac Biotech Ltd. (NASDAQ: SVA) is trading up 7.5% at $4.30 on above average volume.  The company disclosed that there were THREE upcoming presentations:

• Morgan Stanley Global Healthcare Unplugged Conference, New York, scheduled for September 14 at 2:10 pm ET.
• Morgan Stanley China Global Healthcare Day, Boston, September 15 in one-on-meetings with investors.
• UBS Global Life Sciences Conference, New York, scheduled for Monday, September 20 at 10:00 AM ET.

Stem cells are back in vogue…. Geron Corporation (NASDAQ: GERN), StemCells Inc. (NASDAQ: STEM), Aastrom Biosciences, Inc. (NASDAQ: ASTM), Cytori Therapeutics, Inc. (NASDAQ: CYTX), Neostem, Inc. (AMEX: NBS), BioTime, Inc. (NASDAQ: BTIM) and Pluristem Therapeutics, Inc. (NASDAQ: PSTI) are all trading higher on word that US District Court has lifted that ban on federal funding for embryonic stem cells.

VIVUS Inc. (NASDAQ: VVUS) is down 3.5% at $6.11 but it is on light trading volume.  Orexigen Therapeutics, Inc. (NASDAQ: OREX) is down 3.4% at $5.14 on thin volume, and this is the one that Takeda got on the map for a potential $1 billion obesity pill pact announced in recent weeks.  Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) is also down 4% at $7.13 on fairly active trading volume.

Santarus Inc. (NASDAQ: SNTS) is up after it secured a license for a Type II diabetes drug for the exclusive manufacturing and commercial rights to Cycloset in the U.S. with S2 Therapeutics and VeroScience.  The company will pay an upfront $5 million fee and will then pay royalties to its partners from the Cycloset sales.  Santarus shares are trading up over 14% at $2.54 on about 10-times normal trading volume.

Genzyme Corporation (NASDAQ: GENZ) is up today on hopes of a higher Sanofi-Aventis (NYSE: SNY) bid, although this appears to be  on a false rumor.

There was a massive push for drug and biotech research calls today.  Stocks given new coverage, upgrades, and downgrades were Teva Pharmaceutical Industries Limited (NASDAQ: TEVA), Amgen Inc. (NASDAQ: AMGN), Acorda Therapeutics, Inc. (NASDAQ: ACOR), Celgene Corporation (NASDAQ: CELG), Human Genome Sciences Inc. (NASDAQ: HGSI), Biogen Idec Inc. (NASDAQ: BIIB), Gilead Sciences Inc. (NASDAQ: GILD), EXACT Sciences Corp. (NASDAQ: EXAS), ZymoGenetics Inc. (NASDAQ: ZGEN), Dyax Corp. (NASDAQ: DYAX), IDEXX Laboratories, Inc. (NASDAQ: IDXX), and ViroPharma Inc. (NASDAQ: VPHM) all have major research calls with a FULL RESEARCH SUMMARY WITH INDIVIDUAL CALLS HERE.

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JON C. OGG

This was a preliminary injunction by Judge Royce Lamberth in Washington, D.C. that stemmed from a case with two scientists challenging the Obama stem cell funding designed to catch back up and to expand federal support for stem cell research and this falls under the Dickey-Wicker Amendment.

Stem cells are still very controversial because of the moral and religious aspects.  Those who want stem cell research feel that the field holds cure to cancer, blindness, paralysis, organ replacement, and on and on.  This case will still have many steps along the way and ultimately this could end up being one of those cases that either tests the Constitution or that goes all the way to the U.S. Supreme Court.

According to the ruling, Congress did not make any specifications for exceptions.  The current funding approved is for embryonic stem cells which have been destroyed and is not in support of new lines.  Effectively, this would force stem cell research back under much of the same guidelines that had been in place under President Bush.

The current injunction does not appear to ban funding of stem cell research, but it keeps out the federal funding.  To show why this matters, the National Institutes of Health has invested nearly $400 million in human embryonic stem cell research in the last five years.  The current regulations before yesterday’s ruling had more than 70 human embryonic stem cell lines eligible and it covered stem cell lines that were derived from human embryos created from in vitro fertilization which are no longer needed.

Geron Corporation (NASDAQ: GERN) is down 5.4% at $4.75 versus a 52-week trading range of $4.37 to $7.51.  Geron recently received an FDA lifting of a clinical trial hold involving spinal cord injuries.

StemCells Inc. (NASDAQ: STEM) is down 7.25% at $0.79 and its shares hit a 52-week low of $0.76 this morning versus a high of $1.79.  This one recently had positive paralysis study data.

Aastrom Biosciences, Inc. (NASDAQ: ASTM) is down 4% at $1.44 versus a 52-week range of $1.32 to $4.16.

Cytori Therapeutics, Inc. (NASDAQ: CYTX) is down 4.8% at $4.52 and the 52-week range is $2.93 to $9.50.

Neostem, Inc. (AMEX: NBS) is down by 3.4% at $1.70 versus a 52-week trading range of $1.26 to $3.50.  As we have outlined before, NeoStem is actually tied to adult stem cells rather than embryonic stem cells.

BioTime, Inc. (NASDAQ: BTIM) is down 5.2% at $4.56 versus a 52-week range of $3.02 to $8.42.  BioTime recently noted that a peer reviewed Regenerative Medicine publication showed that the aging of human cells can be reversed.

It was just in late 2009 that the NIH announced the approval of the first 13 human embryonic stem cell lines for use in NIH-funded research under the NIH Guidelines for Human Stem Cell Research adopted in July 2009.

This latest round of news is a preliminary injunction.  It is not a final ruling.  If this ruling were to stand, then stem cell research would be severely hindered in the U.S.  Again, this is a preliminary ruling and there are many steps which will come into play here before any final resolution comes to pass.

You can visit BioHealthInvestor.com for a full review of key developments and major news in STEM CELL research that goes back to 2008.

JON C. OGG

Other stem cell stocks received a big boost from the news.  Neostem Inc. (AMEX: NBS), which operates a operates a center for the collection and storage of stem cell, rose as high as 7.6%.  StemCells Inc. (NASDAQ: STEM), which attempts to treat organ disorders with stem cells,  climbed as high as 7.2%

Garrett W. McIntyre

Opexa Therapeutics Inc (NASDAQ: OPXA) led the rise in stem cell stocks, surging over 40%.  The company seeks to develop treatments to major illnesses, such as multiple sclerosis and diabetes, through stem cell research.  The company’s stock has risen 2837% off its lows for the year.

StemCells Inc (NASDAQ: STEM) rose over 30% to a high of $1.45.  The company engages in research aimed at developing treatment for organ damage using stem cells.  The company’s stock is up over 1544% off its low for the year.

Garrett W. McIntyre

This is a further step in GE Healthcare’s cell technology strategy and is meant to accelerate the development of hESC-derived products for drug discovery and development.  GE Healthcare has been granted an exclusive license under Geron’s extensive intellectual property portfolio, which covers the growth and differentiation of hESCs, as well as a sublicense under Geron’s rights to the foundational hESC patents held by the Wisconsin Alumni Research Foundation.

This is being dubbed a multi-year alliance and GE Healthcare will fund the R&D program and will be responsible for manufacturing, sales and distribution of products developed under the agreement. Intellectual property rights that come out of the alliance program research will be shared, with GE Healthcare receiving rights for the development of drug discovery technologies and Geron receiving rights for cell therapy applications.

GE shares were up almost 1% before consumer confidence was released, but Geron is the real winner here with shares up 18% at $7.99 on the day.

The benefits of this could be the next Holy Grail in biotech.  Stem cell research is hoped to lead into solid cures such as cancer, cardiac science, tissue regeneration, paralysis, and more.  There has long been a ban on new embryonic stem cell lines which was lifted earlier this year.  And then there is the controversy of the use of embryonic stem cells that crosses politics, morality, and religion.

Jon C. Ogg
June 30, 2009

• Aastrom Biosciences, Inc. (NASDAQ: ASTM) +87% at $0.62
• Cytori Therapeutics, Inc. (NASDAQ: CYTX) +38% at $3.20
• Geron Corporation (NASDAQ: GERN) +29% at $4.99
• Neostem, Inc. (AMEX: NBS) NOT TRADED
• Osiris Therapeutics, Inc. (NASDAQ: OSIR) NOT TRADED…. in pact with Genzyme, but for adult stem cells.
• StemCells Inc. (NASDAQ: STEM) +55% at $2.15
• Thermogenesis Corp. (NASDAQ: KOOL) +41% at $0.57

Many of these stem cell stocks will trade more on a “vote of confidence” rather than over what this means as far as “new news” is concerned.

JON C. OGG

If you look at Tradesports.com for the political futures, you can see the Presidential nominee futures right now if you want to make a determination where the actual money bets are going right now.  McCain is priced at $93.00 and Romney is now priced at $1.90, so this would indicate a 92.9% probability of a McCain nomination.  The Democrat race is much closer right now with Tradesports showing a Hillary Clinton nomination with a $54.60 price (down $8.40), and Obama with a $47.40 price (up $8.90).  So the futures are showing a McCain essentially as a shoe-in now, yet the Democrat race is still too close to call.  Guess what, this would be a win-win for stem cell research beyond this year.

Last June (boy, these guys have been running forever already) both Clinton and Obama criticized Bush’s stem cell veto.  There you can see a link to each comment from either candidate.

StemCells Inc. (NASDAQ: STEM) shares have surged some 20% in the lasttwo trading days, and shares are some 40% under its 52-week highs.Geron Corporation (NASDAQ: GERN) shares are basically flat over thelast two days and are almost 50% under 52-week highs.   AastromBiosciences, Inc. (NASDAQ: ASTM) shares are up over 20% in recentsessions with shares off more than 50% from their 52-week highs.  Thereare some other stocks that have stem cell exposure as well:

• Invitrogen Corp. (NASDAQ: IVGN) also has a broader stem cellmonitor kit for analyzing the state of human embryonic stem cells,although this is a much larger company and its shares are up some 3%after earnings.
• Osiris Therapeutics (NASDAQ: OSIR) also has an FDA fast track designation for its stem cell treatment PROCHYMAL for the highly debilitating Crohn’s Disease.
• Two smaller plays here are Thermogenesis (NASDAQ: KOOL) and the OTC stock Cryo-Cell International (OTCBB: CCEL).
• There is also a smaller AMEX listed company called NeoStem Inc.(AMEX: NBS) that just yesterday announced a New York state license forADULT Stem Cell collection, so this one may have an implied ‘less controversial stance’ to it.

Obviously this is a controversial area for many, and there are manyarguments on both sides that have merit.  This is the Wall Street angleto a controversial situation.

Jon C. Ogg
February 6, 2008

Senator Obama has issued a statement regarding President Bush’s veto of the Embryonic Stem Cell Bill:

Senator Obama noted:  "By vetoing funding for stem cell research once again, the President is deferring the hopes of millions of Americans who do not have the time to keep waiting for the cure that may save or extend their lives. The promise that stem cells hold does not come from any particular ideology, it is the judgment of science, and we deserve a President who will put that judgment first and make this promise real for the American people."

Hillary Clinton noted (condensed): "You know, later today, apparently, the president will veto a bill passed by Congress to support stem cell research……Now, this is research that…holds such promise for devastating diseases. Yesterday, I met with a group of children suffering from juvenile diabetes. I co-chair the Alzheimer’s caucus in the Senate. I’ve worked on helping to boost funding for research to look for cures and a way to prevent so many devastating diseases. And we know that stem cell research holds the key to our understanding more about what we can do. So let me be very clear: When I am president, I will lift the ban on stem cell research…. This is just one example of how the President puts ideology before science, politics before the needs of our families, just one more example of how out of touch with reality he and his party have become. And it’s just one more example as to why we’re going to send them packing in January 2009, and return progressive leadership to the White House."

Stem cell investing is an issue that is frankly more politically igniting than perhaps any other issue for investors.  The key stem cell stocks that investors place bets on with the rise and fall of stem cell issues are StemCells Inc. (STEM-NASDAQ), Geron (GERN-NASDAQ), and Aastrom Biosciences (ASTM-NASDAQ).  It is always interesting which politicians and which candidates are pro or con on political issues that have implications for individual stock sectors.  If stem cell investing is yor primary focus, Obama is one of your friends. If not, well that answer is obvious too.

StemCells (STEM) closed down 2.3% at $2.48; Geron (GERN) closed down 3.1% at $7.39; and Aastrom (ASTM) closed down 2.1% at$1.39.

Jon C. Ogg
June 20, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in any of the companies he covers