Abstract: Disclosed are cellular compositions, grafts and pharmaceutical products made from bone marrow (BM) cells useful for a wide array of cell-based therapies for diseases and disorders of the nervous system. Transgenic cells in accord with the invention express therapeutic or reporter genes encoded in viral vectors. The cells are capable of extensive expansion in vitro and can generate neurons and glial cells both in culture and in vivo. Upon administration to a nervous system tissue or site in a host subject, the cells can migrate to appropriate target sites and can assimilate therein, differentiating into both neurons and astrocytes without evidence of fusion with endogenous cells of the host nervous tissue. The cells can express an array of therapeutic gene products suitable for treatment of nervous system disorders. Particularly preferred for neurodegenerative disease applications are transgenic BM-derived neurogenic cells expressing neurotrophic factors.