Full Press Release Details
Corporation Reports 2010 First Quarter Financial Results and Highlights
MENLO PARK, Calif.--(BUSINESS WIRE)--April 28, 2010--Geron Corporation
(Nasdaq: GERN) today reported financial results for the three months
ended March 31, 2010.
For the first quarter of 2010, the company reported operating revenues
of $918,000 and operating expenses of $17.4 million, compared to
$444,000 and $17.1 million, respectively, for the comparable 2009
period. Net loss for the first quarter of 2010 was $16.6 million, or
$(0.18) per share, compared to $16.8 million, or $(0.20) per share, for
the comparable 2009 period. The company ended the quarter with $166.5
million in cash and investments.
Revenues for the first quarter of 2010 included funding from
collaboration agreements and royalty and license fee revenues under
various agreements. Revenues for the first quarter of 2009 reflected
royalty and license fee revenues under various license agreements.
Interest and other income for the first quarter of 2010 amounted to
$202,000, compared to $525,000 for the comparable 2009 period.
Research and development expenses for the first quarter of 2010 were
$13.5 million, compared to $13.8 million for the comparable 2009 period.
The decrease in research and development expenses primarily reflected
lower manufacturing costs for GRNVAC1 due to the completion of patient
enrollment for that Phase II clinical trial, offset by increased
preclinical study costs for GRNOPC1. The company expects its research
and development expenses to increase in the future as it advances
imetelstat to Phase II clinical trials. General and administrative
expenses for the first quarter of 2010 were $3.9 million, compared to
$3.4 million for the comparable 2009 period. The increase in general and
administrative expenses was primarily the result of higher legal costs
associated with the company's patents and consulting costs.
First Quarter 2010 Highlights:
Geron published preclinical data in Clinical Cancer Research
demonstrating that imetelstat (GRN163L) inhibited telomerase activity
and reduced tumor growth rate and size in xenograft models of
glioblastoma, and inhibited the activity of glioblastoma stem cells in
culture. These preclinical data showed that imetelstat crossed the
blood-brain barrier that limits the delivery of most therapeutic drugs
Outstanding warrants held by certain institutional investors were
exchanged for shares of Geron common stock. In connection with the
exchange, the company sold additional shares of common stock for gross
proceeds of $10.0 million to the investors at a premium to the then
current market price of the company's common stock and issued a call
option to the investors to purchase an additional $5.0 million of common
stock at the premium price.
A new collaboration was formed to investigate the therapeutic
potential of human embryonic stem cell (hESC)-based product, GRNOPC1,
for Alzheimer's disease. The collaboration is being jointly funded by
Geron and a University of California Discovery Research and Training
Geron scientists and collaborators gave five presentations describing
recent data on imetelstat (GRN163L) and highlighted the drug's activity
against cancer stem cells at the American Association for Cancer
Research (AACR) Special Conference on The Role of Telomeres and
Telomerase in Cancer Research. Preclinical data has shown that
imetelstat exhibits anti-cancer stem cell activity in nine different
Corning Incorporated launched the Synthemax surface, a new synthetic
matrix for growing hESCs. The new product was developed under a
collaboration and license agreement between Geron and Corning.
Geron appointed Thomas Hofstaetter, Ph.D. to its board of directors
and as a member of the board's compensation committee. The company also
announced that Patrick J. Zenner, who has served as a director of the
company since July 2001, will retire from the board, effective as of the
annual meeting of stockholders on May 19, 2010.
At 8:00 a.m. PDT/11:00 a.m. EDT on April 30, 2010, 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 first quarter results.
Participants can access the conference call via telephone by dialing
866-578-5784 (U.S.) or 617-213-8056 (international). The passcode is
31490177. A live audio-only Webcast is also available through a link
that is posted on the events page in the investor relations section of
Geron's Web site at http://www.geron.com. The audio Web
broadcast of the conference call will be available for replay within 60
minutes following the live broadcast through May 30, 2010.
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.
Use of Forward-Looking Statements
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 financial results constitute
forward-looking statements that involve risks and uncertainties,
including, without limitation, risks inherent in the development and
commercialization of potential products, uncertainty of clinical trial
results or regulatory approvals or clearances, need for future capital,
dependence upon collaborators and maintenance of our intellectual
property rights. Actual results may differ materially from the results
anticipated in these forward-looking statements. Additional information
on potential factors that could affect our results and other risks and
uncertainties are detailed from time to time in Geron's periodic
reports, including the annual report on Form 10-K for the year ended
| GERON CORPORATION | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (UNAUDITED) | ||||||||
| THREE MONTHS ENDED MARCH 31, | ||||||||
| (In thousands, except share and per share data) | 2010 | 2009 | ||||||
| Revenues from collaborative agreements | $ | 225 | $ | - | ||||
| License fees and royalties | 693 | 444 | ||||||
| Total revenues | 918 | 444 | ||||||
| Operating expenses: | ||||||||
| Research and development | 13,545 | 13,771 | ||||||
| General and administrative | 3,850 | 3,378 | ||||||
| Total operating expenses | 17,395 | 17,149 | ||||||
| Loss from operations | (16,477 | ) | (16,705 | ) | ||||
| Unrealized gain on derivatives, net | 58 | 77 | ||||||
| Interest and other income | 202 | 525 | ||||||
| Losses recognized under equity method investment | (396 | ) | (656 | ) | ||||
| Interest and other expense | (27 | ) | (52 | ) | ||||
| Net loss | $ | (16,640 | ) | $ | (16,811 | ) | ||
| Basic and diluted net loss per share | $ | (0.18 | ) | $ | (0.20 | ) | ||
| Shares used in computing basic and diluted net loss per share | 95,012,100 | 84,160,889 |
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| MARCH 31, | DECEMBER 31, | |||||
| (In thousands) | 2010 | 2009 | ||||
| (Unaudited) | (Note 1) | |||||
| Current assets: | ||||||
| Cash, restricted cash and cash equivalents | $ | 36,691 | $ | 35,392 | ||
| Current marketable securities | 89,390 | 77,009 | ||||
| Other current assets | 7,153 | 5,378 | ||||
| Total current assets | 133,234 | 117,779 | ||||
| Noncurrent marketable securities | 40,447 | 54,669 | ||||
| Property and equipment, net | 3,934 | 3,938 | ||||
| Deposits and other assets | 3,110 | 3,996 | ||||
| $ | 180,725 | $ | 180,382 | |||
| Current liabilities | $ | 6,805 | $ | 7,455 | ||
| Noncurrent liabilities | 175 | 350 | ||||
| Stockholders' equity | 173,745 | 172,577 | ||||
| $ | 180,725 | $ | 180,382 |
Anna Krassowska, Ph.D., 650-473-7765