Zacks Investment Research | Aug 09, 2017 10:10PM ET
Geron Corporation (NASDAQ:GERN) reported a loss of 4 cents per share in the second quarter of 2017, which was narrower than the Zacks Consensus Estimate of a loss of 5 cents. In the year-ago quarter too, the company had recorded a loss of 5 cents.
Shares rose 4.7% in after-hours trading on Wednesday. However, so far this year, Geron’s shares have underperformed the industry . Shares of Geron rose 3.9% during the period, while the industry witnessed a gain of 8.8%.
Quarterly revenues came in at $0.17 million compared with $0.21 million in the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $0.56 million. Revenues comprised royalty and license fee revenues received under various non-imetelstat license agreements.
Research and development (R&D) expenses declined 45.6% to $2.5 million due to lower costs for the proportionate share of clinical development costs for imetelstat. General and administrative expenses declined 2.2% to $4.4 million due to reduced consulting costs.
The company ended the quarter with $117.2 million in cash and investments compared with $121.7 million at the end of the first quarter.
Pipeline Update
Geron is developing anti-cancer therapies based on telomerase inhibitors. The company currently has one candidate in its pipeline, imetelstat. It is being developed for the treatment of hematologic myeloid malignancies like myelofibrosis (MF) and myelodysplastic syndromes (MDS). Geron has a collaboration with Johnson & Johnson’s (NYSE:JNJ) subsidiary Janssen for imetelstat.
In Sep 2016, Janssen announced unfavorable findings from the planned internal reviews of initial data from the two studies of imetelstat, IMbark (phase II) for the treatment of MF and IMerge (phase II/III) for the treatment of MDS.
However, in Apr 2017, Geron informed that Janssen has completed the second internal data review of the two studies and as a result of the review, both trials are continuing unmodified
For IMerge, Janssen said that the benefit/risk profile of imetelstat in the treated patients supports continued development in lower risk MDS indication. Geron mentioned that if Janssen decides to proceed to Part 2 of IMerge (a larger, 170 patient, phase III study), patient enrollment will begin in the fourth quarter of this year. Last month, Geron announced that Part 1 of IMerge will be expanded to enroll additional patients in a refined MDS population to confirm the clinical benefit and safety observed from the current result.
For IMbark, the results suggested that the clinical benefit and a potential overall survival benefit observed supports continuation of the trial without modifications. Janssen is expected to evaluate maturing data from the IMbark study during next year, including an assessment of overall survival.
Last month, Geron said it expects Janssen, upon examining overall survival, to make a continuation decision in the third quarter of 2018.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.