Full Press Release Details
Corporation Reports Fourth Quarter and Annual 2010 Financial Results
MENLO PARK, Calif.--(BUSINESS WIRE)--February 24, 2011--Geron
Corporation (Nasdaq: GERN) today reported financial results for the
fourth quarter and year ended December 31, 2010.
Fourth Quarter 2010 Results
Net loss applicable to common stockholders for the fourth quarter of
2010 was $59.4 million or $(0.59) per share, which included a charge of
$35.0 million in connection with the Angiochem in-license, compared to
$18.4 million or $(0.20) per share for the comparable 2009 period. In
the fourth quarter of 2010, the company had revenues of $1.1 million,
compared to $605,000 for the comparable 2009 period. Revenues for the
fourth quarter of 2010 and 2009 reflect funding under collaboration
agreements and royalty and license fee revenues.
Interest and other income for the fourth quarter of 2010 was $1.4
million, compared to $246,000 for the comparable 2009 period. In
November 2010, the company received $1.2 million in total grants under
the Qualifying Therapeutic Discovery Project (QTDP) program.
In the fourth quarter of 2010, the company had operating expenses of
$60.7 million, which included a charge of $35.0 million in connection
with the Angiochem in-license, compared to $19.0 million for the
comparable 2009 period. Research and development expenses for the fourth
quarter of 2010 were $21.0 million, compared to $15.3 million for the
comparable 2009 period. Research and development expenses increased due
to higher drug purchases and increased clinical trial costs related to
four Phase 2 trials with imetelstat and re-initiation of our Phase 1
trial with GRNOPC1. General and administrative expenses for the fourth
quarter of 2010 were $4.7 million, compared to $3.6 million for the
comparable 2009 period. The increase was primarily due to higher
non-cash compensation expense for stock-based awards and legal and
Year End 2010 Results
For 2010, the company had net loss applicable to common stockholders of
$111.4 million or $(1.14) per share, which included a charge of $35.0
million in connection with the Angiochem in-license, compared to $70.4
million or $(0.80) per share for 2009. The company ended the year with
$221.3 million in cash and investments.
For 2010, the company had revenues of $3.6 million, compared to $1.7
million for 2009. Revenues for 2010 and 2009 reflect funding under
collaboration agreements and royalty and license fee revenues.
For 2010, interest and other income was $2.0 million, compared to $1.4
million for 2009. The company has not incurred any impairment charges on
its marketable securities portfolio.
For 2010, the company had operating expenses of $114.7 million, which
included a charge of $35.0 million in connection with the Angiochem
in-license, compared to $72.0 million for 2009. Research and development
expenses for 2010 were $61.7 million, compared to $57.6 million for
2009. Overall research and development expenses increased in 2010 as a
result of higher drug purchases, clinical trial costs and non-cash
compensation expense for stock-based awards, partially offset by reduced
manufacturing costs for GRNVAC1 with the completion of the Phase 2 AML
trial. General and administrative expenses for 2010 were $18.0 million,
compared to $14.3 million for 2009. The increase was the result of
higher non-cash compensation expense and legal and consulting costs.
Clinical Development
The Phase 2 clinical program of Geron's telomerase inhibitor drug,
imetelstat, was launched. Two large randomized Phase 2 clinical trials
were initiated testing imetelstat in addition to standard of care
against standard of care alone in non-small cell lung cancer and
metastatic breast cancer. Primary endpoints are progression-free
survival. Two single arm Phase 2 clinical trials of imetelstat as a
single agent were opened for patient enrollment in multiple myeloma and
essential thrombocythemia. The Phase 2 clinical trials focus on
malignancies in which cancer stem cells are believed to play an
important role in disease progression and relapse after standard therapy.
Final data from the Phase 2 clinical trial of GRNVAC1, an autologous
dendritic cell vaccine targeting telomerase, in patients with acute
myelogenous leukemia (AML), showed prolonged remission duration in some
patients with high-risk AML, providing the first evidence that targeting
telomerase may be associated with a clinically significant outcome. The
data were presented at the Annual Meeting of the American Society of
The Phase 1 clinical trial of GRNOPC1, Geron's cell therapy product
containing oligodendrocyte progenitor cells derived from human embryonic
stem cells (hESCs), was initiated in patients with spinal cord injury.
Developed under a license and alliance agreement with Geron, GE
Healthcare launched the first cellular assay product for use in drug
discovery and toxicity screening. The hESC-derived cardiomyocytes are
for testing potential cardiac toxicity of candidate drug compounds, an
important and universal step in drug development.
Developed under a collaboration and license agreement with Geron,
Corning Incorporated launched the Synthemax surface, a new synthetic
matrix for growth and differentiation of hESCs. The companies have been
working together to develop synthetic surface matrices to enhance the
scalability of hESC-derived product manufacturing.
Preclinical study data showed that GRNCM1 does not cause cardiac
arrhythmias after transplantation into a small animal model of chronic
heart damage designed to test this potential safety concern. GRNCM1 is
being developed for the treatment of congestive heart failure and
myocardial infarction. The data were presented at the 31st Annual
Scientific Sessions of the Heart Rhythm Society by Geron's collaborator,
Dr. Michael Laflamme from the University of Washington.
Preclinical data provided the first demonstration that a telomerase
activator can affect fibrotic disease progression in a model system.
Geron's small molecule telomerase activator, GRN510 (formerly TAT153),
increased telomerase activity in the lung tissue, reduced inflammation,
preserved functional lung tissue, slowed disease progression and
attenuated loss of pulmonary function in an animal model of idiopathic
pulmonary fibrosis (IPF). The data were presented at the American
Thoracic Society International Conference by Geron collaborator, Dr.
Claude Jourdan Le Saux from the University of Texas at San Antonio.
Business Development and Finance
A worldwide exclusive license was signed with Angiochem, Inc. for