The company doing the first government-approved test of embryonic stem cell therapy is discontinuing further stem cell work, a move with stark implications for a field offering hope of future medicines for conditions with inadequate or no current treatments. Geron Corp., a pioneer in stem cell research that has been testing a spinal cord injury treatment, said late Monday that it's halting development of its stem cell programs to conserve funds. It is seeking partners to take on the programs' assets and is laying off much of its staff. The news sent Geron shares down sharply in after-hours trading. They fell 38 cents, or 17.3 percent, to $1.82.

The company is eliminating 66 full-time jobs, or 38 percent of its staff, a process that will bring about $8 million in costs — about $5 million in the current quarter and about $3 million in the first half of 2012. Geron said it expects to end this year with more than $150 million in cash and investments. In a statement, the company said the decision to narrow its focus "was made after a strategic review of the costs, ... timelines and clinical, manufacturing and regulatory complexities associated with the company's research and clinical-stage assets." The shift comes barely six weeks after the company's board appointed biotech industry veteran Dr. John A. Scarlett as Geron's new chief executive.

Geron said it is looking for partners who have the technical and financial resources to advance its stem cell programs. Analyst Steve Brozak of WBB Securities said Geron has been trying to find partners "and people have said,'Show us later-stage results.'" Since the recession began in 2008, venture capital funding for the biotech industry has greatly declined as many investors seek projects with quicker potential payoffs. Embryonic stem cells can develop into any type of cell in the body. The hope is that one day they might be used to replace or repair damaged tissue from ailments such as heart disease, Parkinson's and stroke.