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The other is the stem cell company.
The drug, developed by Osiris, a stem cell company based in Maryland, is considered the closest to market of all the stem cell-based products in human testing.
Jeanne Loring, a scientist at the Burnham Institute for Medical Research in La Jolla, CA, started a short-lived embryonic stem cell company several years ago.
"There are just so many downstream implications," says Lanza, who is chief scientific officer of Advanced Cell Technology, a stem cell company.
The New York lawsuit — seeking an injunction to stop Park Avenue Stem Cell from marketing its treatments — is one of the first instances in which a state has filed a lawsuit against a stem cell company.
In court proceedings and documents, Mr. Blech said he was so convinced that Pluristem Therapeutics, an Israeli stem cell company, would be successful that he spent $6 million, some of it borrowed, on its shares.
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"I don't think a great business model with high profits has come out yet," said Irving Weissman, a professor at Stanford Medical School, who has started two stem cell companies.
A day earlier, the Food and Drug Administration sent 20 letters to stem cell companies, telling them to stop selling unapproved products in violation of federal laws.
A lack of proven commercial success and a surfeit of ethical, legal and political problems make stem cell companies a difficult pitch to venture capitalists.
But in recent years, such lawsuits have been rare, with the government going after only a handful of stem cell companies in court.
As such, the new agreement could help reduce concern among some scientists that Geron's rights would discourage others from pursuing the field or force stem cell companies to move overseas to avoid potential patent infringement charges.
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