Here's Why Geron (GERN) Is A Good Stock To Invest In Now
Zacks Investment Research | Jun 21, 2017 10:36PM ET
Geron Corporation (NASDAQ:GERN) is developing anti-cancer therapies based on telomerase inhibitors. The company’s telomerase technology platform represents significant commercial opportunity. The successful development of products that target telomeres could change the treatment paradigm for several diseases, including oncology, which exhibits huge commercial potential.
The small biotech 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 enjoys a strong collaboration with Johnson & Johnson’s (NYSE:JNJ) subsidiary Janssen for imetelstat. We remind investors that imetelstat has orphan drug status in the U.S. for the MF and MDS indications.
In 2016, J&J announced unfavorable findings from the planned internal reviews of initial data from the two studies of imetelstat – IMbark (phase II) for MF and IMerge (phase II/III) for MDS.
However, in Apr 2017, Geron informed that Janssen has completed the second internal data review of the two studies to inform on further development plans. As a result of the review, both trials are continuing unmodified.
For IMerge, the company believes that the benefit/risk profile supports continued development. 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.
For IMbark, the results suggested that the clinical benefit and potential overall survival benefit observed supports continuation of the trial without modifications. However, Janssen will evaluate maturing data from the IMbark study during next year, including an assessment of overall survival.
Geron has a Zacks Rank #2 (Buy). Loss estimates have narrowed 80% for 2017. For 2018, estimates have gone up from breakeven to 2 cents per share over the past 60 days. The average earnings surprise over the past four quarters is 27.98%. Shares of the company have risen 37.7% this year so far, outperforming the Zacks classified Medical - Biomedical and Genetics industry which rose 10.6%.
The favorable numbers and the rapid advances in imetelstat development suggest that the stock could be a good investment.
Other stocks worth considering in the sector include Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and VIVUS, Inc. (NASDAQ:VVUS) , both sporting a Zacks Rank #1 (Strong Buy). ). You can see .
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VIVUS’ loss per share estimates narrowed 22% cents for 2017 in the last 60 days. The company delivered positive earnings surprises in all four trailing quarters with an average beat of 233.69%.
Regeneron’s earnings estimates have risen almost 10% for 2017 over the last 60 days. Shares of the company have risen 42.2% so far this year.
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