Stock Quotes in this Article: ALXN, CELG, IART

The Food and Drug Administration has given the go ahead to Geron (GERN) to use human embryonic stem cells in human patients. The trial study will be used to treat patients with spinal injuries. Previous studies have shown that paralyzed rats have achieved some movement after treatment.

Geron, which has expended $170 million on stem cell research, was up about 6% today on the news. The stock generated a quarterly loss of 73 cents for the latest reported quarter, but revenue was up 447% during the same time frame. The company will report earnings on Oct. 28. This debt-free company has $1.19 in cash per share.

Research has been continuing to utilize stem cells for gene therapy and the treatment of Parkinson’s disease, heart disease, diabetes, multiple sclerosis, arthritis, macular degeneration, and many other medical conditions. Stem cells can come from various sources including embryos, cord blood, which is the blood from umbilical cords, and even baby teeth.

WallStreetNewsNetwork provides a list of 11 stem cell stocks, which you can download and sort

Alexion Pharmaceuticals (ALXN) is a Connecticut-based company with a $6 billion market cap that is involved in the development of biologic therapeutic products for the treatment of hematologic and cardiovascular disorders, autoimmune diseases and cancer. The stock has a P/E of 20 and a forward P/E of 28.

Celgene (CELG) is a $26 billion market-cap company involved in the discovery and production of therapies designed to treat cancer and immune-inflammatory-related diseases. One of the main products is Thalomid, which is used for the treatment of erythema nodosum leprosum, a complication of leprosy. The company also received a patent on placental stem cell recovery. The stock sports a P/E of 31 and a forward P/E of 17.

Integra LifeSciences Holdings (IART) is a New Jersey based $1 billion market-cap company that develops, manufactures and sells medical devices, implants, biomaterials and instruments to the stem cell, surgery, and soft tissue repair markets. The P/E is 19, and the forward P/E is 13.

To see these stocks in action, check out the stem cell stocks portfolio on Stockpickr.

At the time of publication, author had no positions in stocks mentioned.

Fred Fuld III, the publisher of stock and bond investing blog Stockerblog and founder of WallStreetNewsNetwork, has been in the financial services industry for over 20 years, working as an investment advisor, options market maker at the Pacific Stock Exchange, vice president of a San Francisco money management fund, university faculty member and wholesaler for the New Alternatives Fund (the first environmentally conscious mutual fund). He is the author of the books Investing in Brazil Stocks and The Green Light on Green Stocks.