Full Press Release Details
Corporation Reports 2011 Third Quarter Financial Results and Events
MENLO PARK, Calif.--(BUSINESS WIRE)--November 3, 2011--Geron Corporation
(Nasdaq: GERN) today reported financial results for the three and nine
months ended September 30, 2011.
For the third quarter of 2011, the company reported a net loss of $19.5
million, or $0.16 per share, compared to $18.3 million, or $0.19 per
share, for the comparable 2010 period. Net loss for the first nine
months of 2011 was $65.0 million, or $0.52 per share, compared to $52.0
million, or $0.54 per share, for the comparable 2010 period. The company
ended the quarter with $180.8 million in cash and investments.
Revenues for the third quarter of 2011 were $220,000, compared to
$546,000 for the comparable 2010 period. Revenues for the first nine
months of 2011 were $2.2 million, compared to $2.5 million for the
comparable 2010 period. Revenues for the third quarter and year-to-date
periods of 2011 and 2010 included funding from collaboration agreements
and royalty and license fee revenues under various agreements.
Interest and other income for the third quarter of 2011 amounted to
$237,000, compared to $223,000 for the comparable 2010 period. Interest
and other income for the first nine months of 2011 was $820,000,
compared to $619,000 for the comparable 2010 period which reflects the
increase in cash and investment balances. The company has not incurred
any impairment charges on its marketable debt securities portfolio.
Total operating expenses for the third quarter of 2011 were $20.2
million, compared to $18.7 million for the comparable 2010 period.
Research and development expenses for the third quarter of 2011 were
$16.3 million, compared to $13.7 million for the comparable 2010 period.
General and administrative expenses for the third quarter of 2011 were
$3.8 million, compared to $5.0 million for the comparable 2010 period.
Total operating expenses for the first nine months of 2011 were $67.9
million, compared to $54.0 million for the comparable 2010 period.
Research and development expenses for the first nine months of 2011 were
$49.6 million, compared to $40.7 million for the comparable 2010 period.
General and administrative expenses for the first nine months of 2011
were $18.3 million, compared to $13.4 million for the comparable 2010
Research and development expenses increased for the three and nine month
periods ending September 30, 2011, compared to the same periods in 2010,
as a result of higher clinical drug product purchases, increased
clinical trial expenses related to the enrollment of four oncology Phase
2 clinical trials of imetelstat and the Phase 1 clinical trial for
GRNOPC1 in patients with spinal cord injury and start-up activities for
two oncology Phase 2 clinical trials for GRN1005. The company expects
research and development expenses to increase in the future with the
initiation of the GRN1005 Phase 2 clinical trials in patients with brain
metastases and ongoing support of the imetelstat Phase 2 trials and the
GRNOPC1 Phase 1 trial. The variations in general and administrative
expenses for the three and nine month periods ending September 30, 2011,
compared to the same periods in 2010, primarily reflected differences in
non-cash stock-based compensation expense recognized during the
Third Quarter 2011 Highlights:
Geron received its first disbursement under the Targeted Clinical
Development Award from the California Institute for Regenerative
Medicine. In May 2011, CIRM awarded $25.0 million to Geron to support
the clinical development of GRNOPC1, currently in a Phase 1 trial in
patients with spinal cord injury. CIRM funding will provide matching
support in the form of a product-backed loan for clinical trial costs,
non-clinical studies, analytical development and the manufacture of
cells for clinical trials.
The Stanford University and Santa Clara Valley Medical Center enrolled
the first Californian - and fourth person overall - in Geron's GRNOPC1
Phase 1 trial in patients with spinal cord injury. To date, GRNOPC1 has
been well tolerated with no serious adverse events.
John A. Scarlett, M.D., was appointed as Geron's Chief Executive
Officer and a member of the board of directors. Dr. Scarlett brings over
25 years of executive leadership experience in the pharmaceutical and
biotechnology industry to Geron.
At 6:00 a.m. PDT / 9:00 a.m. EDT on Friday, November 4, John A.
Scarlett, M.D., Geron's chief executive officer, and David L. Greenwood,
Geron's president and 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
800-706-7748 (U.S.) or 617-614-3473 (international). The passcode is
53572623. 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 December 5, 2011.
Geron is developing first-in-class biopharmaceuticals for the treatment
of cancer and chronic degenerative diseases. The company is advancing
anti-cancer therapies through multiple Phase 2 clinical trials in
different cancers by targeting the enzyme telomerase and with a compound
designed to penetrate the blood-brain barrier (BBB). The company is
developing cell therapies from differentiated human embryonic stem
cells, with the first product in a Phase 1 clinical trial for spinal
cord injury. For more information, visit www.geron.com.
Use of Forward-Looking Statements
This news release may contain forward-looking statements made pursuant
to the "safe harbor" provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that statements in this
press release regarding potential applications of Geron's telomerase,
oncology, and human embryonic stem cell technologies, including plans
and expectations for future clinical development and future operating
results and expenditures, constitute forward-looking statements that
involve risks and uncertainties, including, without limitation, risks
inherent in the development and commercialization of potential products,
the uncertainty and preliminary nature of clinical trial results or
regulatory approvals or clearances, need to raise additional capital,
dependence upon collaborators and protection 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