Full Press Release Details
Second Quarter Financial Results and Events
MENLO PARK, Calif.--(BUSINESS WIRE)--July 29, 2010--Geron Corporation
(Nasdaq:GERN) today reported financial results for the three and six
months ended June 30, 2010.
For the second quarter of 2010, the company reported a net loss
applicable to common stockholders of $17.0 million, or $(0.18) per
share, compared to $19.9 million, or $(0.23) per share, for the
comparable 2009 period. Net loss applicable to common stockholders for
the first six months of 2010 was $33.7 million, or $(0.35) per share,
compared to $36.8 million or $(0.43) per share, for the comparable 2009
period. The company ended the quarter with $156.0 million in cash and
Revenues for the second quarter of 2010 were $1.0 million, compared to
$183,000 for the comparable 2009 period. Revenues for the first six
months of 2010 were $1.9 million, compared to $627,000 for the
comparable 2009 period. Revenues for the second quarter and year to date
period of 2010 reflect funding from collaboration agreements and royalty
and license fee revenues under various agreements. Revenues for the
second quarter and year to date period of 2009 reflected royalty and
license fee revenues under various license agreements.
Interest and other income for the second quarter of 2010 amounted to
$194,000, compared to $363,000 for the comparable 2009 period. Interest
and other income for the first six months of 2010 was $396,000, compared
to $888,000 for the comparable 2009 period which reflects the lower
interest rate environment. The company has not incurred any impairment
charges on its marketable debt securities portfolio.
Total operating expenses for the second quarter of 2010 were $17.9
million, compared to $18.9 million for the comparable 2009 period.
Research and development expenses for the second quarter of 2010 were
$13.4 million, compared to $15.1 million for the comparable 2009 period.
General and administrative expenses for the second quarter of 2010 were
$4.5 million, compared to $3.8 million for the comparable 2009 period.
Total operating expenses for the first six months of 2010 were $35.3
million, compared to $36.1 million for the comparable 2009 period.
Research and development expenses for the first six months of 2010 were
$26.9 million, compared to $28.9 million for the comparable 2009 period.
General and administrative expenses for the first six months of 2010
were $8.3 million, compared to $7.2 million for the comparable 2009
Research and development expenses decreased for the three and six month
periods ending June 30, 2010, compared to the same periods in 2009,
primarily as a result of reduced manufacturing costs associated with the
completion of patient enrollment for the GRNVAC1 Phase 2 trial and lower
preclinical study costs. General and administrative expenses increased
for the three and six month periods ending June 30, 2010, compared to
the same periods in 2009, primarily due to increased consulting costs
and higher non-cash stock-based compensation expense.
Second Quarter 2010 Highlights:
Five presentations were given on Geron's telomerase inhibitor,
imetelstat sodium (GRN163L), at the American Association for Cancer
Research annual meeting. The presentations highlighted the importance
of telomerase as a cancer stem cell target and the broad anti-cancer
stem cell properties of imetelstat in preclinical models of multiple
The Board of Patent Appeals and Interferences of the U.S. Patent
Office reversed an earlier decision that had upheld the claims of the
patents assigned to the Wisconsin Alumni Research Foundation (WARF)
and licensed to Geron. WARF will have an opportunity to continue
examination of the claims in the patent at the examination level of
Geron's collaborator, Dr. Michael Laflamme from the University of
Washington Medical School, presented preclinical study data at the
31st Annual Scientific Sessions of the Heart Rhythm Society showing
that GRNCM1 does not cause cardiac arrhythmias after transplantation
into a rodent model of chronic heart damage. GRNCM1 is being developed
for the treatment of congestive heart failure and myocardial
Geron's collaborator, Dr. Claude Jourdan Le Saux from the University
of Texas Health Science Center at San Antonio, presented positive data
at the American Thoracic Society 2010 International Conference on the
small molecule telomerase activator, TAT153, in an animal model of
idiopathic pulmonary fibrosis. The data show that administration of
TAT153 increased telomerase activity in the lung tissue, reduced
inflammation, preserved functional lung tissue, slowed disease
progression and attenuated loss of pulmonary function.
Clinical data from the Phase 1 trial of imetelstat (GRN163L) in
combination with paclitaxel and bevacizumab in patients with breast
cancer was presented at the American Society of Clinical Oncology
annual meeting. The data show good tolerability and exposures of the
drug, which exceeds levels that have been associated with tumor
inhibition in several models of human cancers.
Hoyoung Huh, M.D., Ph.D. and Robert J. Spiegel, M.D., FACP were
appointed to Geron's board of directors.
Subsequent Events to June 30, 2010
In July 2010, the company announced that the activities of TA
Therapeutics, Ltd., the joint venture with Hong Kong University of
Science and Technology, are being fully consolidated into Geron.
In July 2010, the first patient was enrolled into Geron's randomized
Phase 2 clinical trial of imetelstat as maintenance therapy following
platinum-based induction therapy for patients with non-small cell lung
At 8:00 a.m. PDT / 11:00 a.m. EDT on Friday, July 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 second quarter and year to date results.
Participants can access the conference call via telephone by dialing
800-706-7749 (U.S.) or 617-614-3474 (international). The passcode is
93768896. 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 through August 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