Full Press Release Details
Corporation Reports 2010 Third Quarter Financial Results and Events
MENLO PARK, Calif.--(BUSINESS WIRE)--October 28, 2010--Geron Corporation
(Nasdaq:GERN) today reported financial results for the three and nine
months ended September 30, 2010.
For the third quarter of 2010, the company reported net loss applicable
to common stockholders of $18.3 million, or $(0.19) per share, compared
to $15.2 million, or $(0.17) per share, for the comparable 2009 period.
Net loss applicable to common stockholders for the first nine months of
2010 was $52.0 million, or $(0.54) per share, compared to $52.0 million,
or $(0.59) per share, for the comparable 2009 period.
Revenues for the third quarter of 2010 were $546,000, compared to
$494,000 for the comparable 2009 period. Revenues for the first nine
months of 2010 were $2.5 million, compared to $1.1 million for the
comparable 2009 period. Revenues for the third quarter and year-to-date
periods of 2010 and 2009 reflect funding under collaboration agreements
and royalty and license fee revenues.
Total operating expenses for the third quarter of 2010 were $18.7
million, compared to $16.9 million for the comparable 2009 period.
Research and development expenses for the third quarter of 2010 were
$13.7 million, compared to $13.4 million for the comparable 2009 period.
Research and development expenses increased primarily as a net result of
higher costs related to clinical trials and preclinical toxicology
studies, partially offset by reduced manufacturing costs for GRNVAC1. In
the 2010 third quarter, additional costs were incurred for the start up
of the Phase 2 clinical trial for imetelstat in non-small cell lung
cancer, start up of the Phase 1 clinical trial for GRNOPC1in spinal cord
injury and pre-IND enabling studies for GRNCM1. With the completion of
patient enrollment for the Phase 2 AML trial, production of GRNVAC1 has
ceased since January 2010. General and administrative expenses for the
third quarter of 2010 were $5.0 million, compared to $3.5 million for
the comparable 2009 period. The increase in general and administrative
expenses was primarily due to higher non-cash compensation expense
associated with stock-based awards and increased legal and consulting
Total operating expenses for the first nine months of 2010 were $54.0
million, compared to $53.0 million for the comparable 2009 period.
Research and development expenses for the first nine months of 2010 were
$40.7 million, compared to $42.3 million for the comparable 2009 period.
Overall research and development expenses decreased in 2010 as a net
result of reduced manufacturing costs for GRNVAC1, partially offset by
higher non-cash compensation expense associated with stock-based awards.
General and administrative expenses for the first nine months of 2010
were $13.4 million, compared to $10.7 million for the comparable 2009
period. The increase in general and administrative expenses was
primarily the result of higher non-cash compensation expense associated
with stock-based awards and increased legal and consulting costs.
Third Quarter 2010 Highlights:
The activities of TA Therapeutics, the joint venture with Hong Kong
University of Science and Technology (HKUST), are being fully
consolidated into Geron. Telomerase activator drug candidates have
been advanced into early efficacy studies, including animal models of
idiopathic pulmonary fibrosis (IPF) and in vitro studies
employing immune cells from HIV patients. Geron plans to continue both
efficacy and safety studies in order to advance a compound to human
The first patient was enrolled in a randomized Phase 2 clinical trial
of the telomerase inhibitor drug, imetelstat (GRN163L) for non-small
cell lung cancer. The multi-center trial tests the efficacy and safety
of imetelstat in combination with standard of care versus standard of
The U.S. Food and Drug Administration (FDA) lifted the clinical hold
placed on Geron's Investigational New Drug (IND) application for the
Phase 1 clinical trial of GRNOPC1 in patients with acute spinal cord
A collaboration was established with researchers at University Campus
Suffolk (UCS) in the U.K. to develop human embryonic stem cell
(hESC)-derived chondrocytes for the treatment of cartilage damage and
joint disease. This collaboration is being jointly funded by Geron and
with U.K. grants. Geron has exclusive rights to the technology for
therapeutic applications.
Events Subsequent to Q3 2010
GE Healthcare launched the first human cellular assay product, human
cardiomyocytes or heart muscle cells, for testing potential cardiac
toxicity of candidate drug compounds in development. The first
commercial sale of this product occurred in October 2010, triggering a
milestone payment to Geron.
The first patient was enrolled in the Phase 1 clinical trial of
hESC-derived oligodendrocyte progenitor cells, GRNOPC1. The primary
objective of this Phase 1 study is to assess the safety and
tolerability of GRNOPC1 in patients with "complete" American Spinal
Injury Association (ASIA) Impairment Scale grade A thoracic spinal
At 8:00 a.m. PDT / 11:00 a.m. EDT on Friday, October 29, 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
866-730-5770 (U.S.) or 857-350-1594 (international). The passcode is
14864744. 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 29, 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.
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,
including, without limitation, risks inherent in the development and