Date: Jan 07, 2013 Author: Steven E.F. Brown Source: bizjournals (
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BioTime Inc. picked up 400 patents and applications plus other intellectual property dealing with human embryonic stem cells from Geron Inc.
The deal includes Phase I clinical trials of a treatment for spinal cord injury. The two companies signed a non-binding letter of intent in November outlining the deal.
Alameda-based BioTime created a subsidiary, BioTime Acquisition Corp., or BAC, to do the deal, and it also got a $5 million investment in the subsidiary and another $5 million investment in BioTime itself. The money came from "a private investor" that BioTime didn't name.
BioTime itself is putting $5 million into BAC, which agreed to pay royalties to Geron on any treatments that come from the work.
The unnamed private investor will own about 7 percent of BAC when the deal is done. The investment is contingent upon the closing of the stem cell asset deal with Geron (NASDAQ: GERN), which has some conditions. Geron is investing in BAC, too, and will own about 21.4 percent, leaving BioTime holding 71.6 percent.
BioTime leased an office and laboratory space in Menlo Park, where Geron is based, for three years for use by its subsidiary corporation. Thomas Okarma, M.D., will be BAC's CEO and president.
Michael West is CEO of BioTime, which is based on Alameda's Bay Farm Island (which ain't actually an island) near the northwest end of Oakland International Airport's main runway.