Geron Corporation Reports 2009 Third Quarter Financial Results and Events MENLO PARK, Calif.--(BUSINESS WIRE)

Corporation Reports 2009 Third Quarter Financial Results and Events

MENLO PARK, Calif.--(BUSINESS WIRE)--October 29, 2009--Geron Corporation

(Nasdaq:GERN) today reported financial results for the three and nine

months ended September 30, 2009.

For the third quarter of 2009, the company reported net loss applicable

to common stockholders of $15.2 million, or $(0.17) per share, compared

to $17.2 million, or $(0.22) per share, for the comparable 2008 period.

Net loss applicable to common stockholders for the first nine months of

2009 was $52.0 million, or $(0.59) per share, compared to $44.4 million,

or $(0.57) per share, for the comparable 2008 period.

Revenues for the third quarter of 2009 were $494,000, compared to

$367,000 for the comparable 2008 period. Revenues for the first nine

months of 2009 were $1.1 million, compared to $2.3 million for the

comparable 2008 period. Revenues for the third quarter and year-to-date

periods of 2009 and 2008 reflect royalty and license fee revenue and

collaboration funding revenue under various agreements. Revenues for the

first nine months of 2008 also included receipt of a $1.5 million

Interest and other income for the third quarter of 2009 amounted to

$240,000, compared to $1.2 million for the comparable 2008 period.

Interest and other income for the first nine months of 2009 was $1.1

million, compared to $4.5 million for the comparable 2008 period which

reflects the lower interest rate environment. The company has not

incurred any impairment charges on its marketable securities portfolio.

Total operating expenses for the third quarter of 2009 were $16.9

million, compared to $18.3 million for the comparable 2008 period.

Research and development expenses for the third quarter of 2009 were

$13.4 million, compared to $14.2 million for the comparable 2008 period.

Research and development expenses decreased primarily as a result of the

timing of purchases of drug product for clinical trials. General and

administrative expenses for the third quarter of 2009 were $3.5 million,

compared to $4.1 million for the comparable 2008 period.

Total operating expenses for the first nine months of 2009 were $53.0

million, compared to $51.6 million for the comparable 2008 period.

Research and development expenses for the first nine months of 2009 were

$42.3 million, compared to $39.4 million for the comparable 2008 period.

Overall research and development expenses increased in 2009 as a result

of hiring additional personnel, increased clinical trial costs and

increased production costs associated with the GRNVAC1 clinical trial in

AML and initiation of the GRNOPC1 clinical trial in spinal cord injury.

General and administrative expenses for the first nine months of 2009

were $10.7 million, compared to $12.2 million for the comparable 2008

period. The reduction in general and administrative expenses was

primarily the result of lower legal costs associated with our patents

and consulting costs.

Third Quarter 2009 Highlights:

Geron scientists published data in the journal Regenerative Medicine

demonstrating that dendritic cells (DCs) scalably manufactured from

human embryonic stem cells (hESCs) exhibit the normal functions of

naturally occurring human DCs found in the bloodstream. These findings

support the use of hESC-derived DCs in therapeutic vaccine

applications for cancer and other diseases.

The U.S. Food and Drug Administration (FDA) placed Geron's IND

(Investigational New Drug application) for GRNOPC1, a cell therapy for

neurologically complete, subacute spinal cord injury, on clinical hold

pending the agency's review of new nonclinical animal study data. The

data showed a higher frequency of cysts, although their

characteristics were similar to what was observed in previous studies:

non-proliferative, confined to the injury site, smaller than the

injury cavity and not associated with adverse clinical outcomes. The

company has identified new candidate markers and assays for product

release that are linked with cyst formation across all animal studies

in which cysts were found. The company is in discussions with the FDA

to answer its questions in anticipation of proceeding with the

Calvin B. Harley, Ph.D., the company's chief scientific officer (CSO)

for telomerase technologies, retired on September 15, 2009. Dr. Harley

joined Geron in 1993 and served as CSO since 1996. Dr. Harley will

continue a relationship with Geron in a senior advisory capacity.

Shares of Geron common stock and warrants to purchase common stock

were sold to certain institutional investors for proceeds of $3.6

million. The proceeds funded an equity contribution to ViaGen, Inc. to

maintain Geron's ownership interest, and were in part used to repay a

$1.5 million loan extended by Geron to ViaGen.

Corning Incorporated, Geron's collaborator, presented data showing

multi-passage growth of multiple undifferentiated hESC lines and the

subsequent differentiation of one of these cell lines into

cardiomyocytes. Corning is developing novel synthetic surface matrices

that support the growth and differentiation of hESCs in a defined

(animal-free) medium.

At 8:00 a.m. PDT / 11:00 a.m. EDT on Friday, October 30, Thomas B.

Okarma, Ph.D., M.D., Geron's chief executive officer, and David L.

Greenwood, Geron's chief financial officer, will host a conference call

to discuss the company's third quarter and year-to-date results.

Participants can access the conference call via telephone by dialing

866-356-3093 (U.S.) or 617-597-5381 (international). The passcode is

61745709. A live audio-only Webcast is also available through a link

that is posted on the events page in the Investors section of Geron's

Website at http://www.geron.com. The audio Web broadcast of the

conference call will be available for replay until November 30, 2009.

Geron is developing first-in-class biopharmaceuticals for the treatment

of cancer and chronic degenerative diseases, including spinal cord

injury, heart failure and diabetes. The company is advancing an

anti-cancer drug and a cancer vaccine that target the enzyme telomerase

through multiple clinical trials in different cancers. For more

information, visit www.geron.com.

This news release may contain forward-looking statements within the

meaning of Section 27A of the Securities Act of 1933 and Section 21E of

the Securities Exchange Act of 1934. Investors are cautioned that

statements in this press release regarding potential applications of

Geron's technologies and future operating results constitute

forward-looking statements that involve risks and uncertainties,