In a move that it anticipates will reduce the preclinical failure of drugs due to toxicity, Geron announced late last week that it is collaborating with CXR Biosciences and the Roslin Institute to develop and commercialize human embryonic stem cell-derived hepatocytes for use in drug metabolism and toxicity screens.

The company hopes to be offering ADME/Tox assays based on the hepatocytes by 2005, according to Geron CFO David Greenwood. Neither Geron nor CXR were able to disclose financial details of the agreement, which was announced on May 20.