Full Press Release Details
Press Release Dated May 2, 2012
GERON CORPORATION REPORTS 2012 FIRST
QUARTER FINANCIAL RESULTS AND HIGHLIGHTS
May 2, 2012 Geron Corporation (Nasdaq:
GERN) today reported financial results for the first quarter ended March 31,
For the first quarter of 2012, the company
reported operating revenues of $1.3 million and operating expenses of $20.2
million, compared to $1.5 million and $25.9 million, respectively, for the
comparable 2011 period. Net loss for the first quarter of 2012 was $18.7
million, or $0.15 per share, compared to $24.4 million, or $0.20 per share, for
the comparable 2011 period. The company ended the quarter with $136.9 million in
cash and investments.
Revenues for the first quarter of 2012 and
2011 included funding from collaborative agreements and royalty and license fee
revenues under various agreements. Interest and other income for the first
quarter of 2012 was $176,000, compared to $296,000 for the comparable 2011
Research and development expenses for the
first quarter of 2012 were $15.1 million, compared to $16.8 million for the
comparable 2011 period. The decrease in research and development expenses
reflected reduced personnel-related costs and lower scientific supplies expenses
resulting from the discontinuation of the company s stem cell programs,
partially offset by increased clinical trial expenses for the enrollment of four
Phase 2 clinical trials of imetelstat and two Phase 2 clinical
trials of GRN1005 and increased drug product purchases and manufacturing costs
related to imetelstat and GRN1005.
General and administrative expenses for
the first quarter of 2012 were $5.1 million, compared to $9.1 million for the
comparable 2011 period. Reduced general and administrative expenses in the first
quarter of 2012 primarily reflected a decline in personnel-related expenses
associated with management transition, including non-cash stock-based
compensation expense.
Non-cash operating expenses were
approximately $2.3 million and $9.8 million for the first quarter of 2012 and
2011, respectively, which primarily included stock-based compensation and
expenses for stock issued for services.
First Quarter 2012 Highlights:
The randomized Phase 2 clinical trial of
imetelstat, in combination with paclitaxel, in patients with locally
recurrent or metastatic breast cancer completed
enrollment. The 166-patient Phase 2 study enrolled in slightly over one year, ahead of expectations. The primary endpoint of
the trial is progression-free survival. The
trial requires that a sufficient number of progression events occur in order
to perform the planned data analyses. Geron
anticipates an accrual of events that will allow the company to report
top-line data from this study by the end of
Graham Cooper joined the company as Executive Vice
President, Finance and Business Development, and Chief Financial Officer. Mr. Cooper will provide direction for all
financial matters for Geron and be responsible
for new business opportunities and investor relations for the
Stephen N. Rosenfield joined the company as
Executive Vice President, General Counsel and Corporate Secretary. Both the legal and human resources departments
report to Mr. Rosenfield.
V. Bryan Lawlis, Ph.D., joined the company s board
of directors and as a member of the board's compensation committee. Dr. Lawlis brings 30 years of biotechnology
industry experience, and he currently serves on
the boards of BioMarin Pharmaceutical Inc. and Sutro Biopharma, Inc.
At 4:30 p.m. EDT on May 2, 2012, Geron s
management will host a conference call to discuss the company s first quarter
Page Two / Geron Reports 2012 First
Quarter Financial Results and Highlights
Participants can access the conference
call via telephone by dialing 800-299-8538 (U.S.); 617-786-2902 (international).
The passcode is 55915442. A live audio-only webcast is also available at
webcast of the conference call will be available for replay approximately one
hour following the live broadcast through May 31, 2012.
Geron is a biopharmaceutical company
developing first-in-class therapies for cancer. The company has two lead product
candidates in clinical development, imetelstat and GRN1005. Imetelstat is a
telomerase inhibitor that is being evaluated in four Phase 2 clinical trials:
metastatic breast cancer, advanced non-small cell lung cancer, essential
thrombocythemia and multiple myeloma. GRN1005 is a peptide-drug conjugate that
is designed to transport a proven anti-cancer drug, paclitaxel, across the
blood-brain barrier by targeting low-density lipoprotein receptor-related
proteins (LRPs), specifically LRP-1. GRN1005 is being evaluated in two Phase 2
clinical trials: brain metastases arising from breast cancer and brain
metastases arising from non-small cell lung cancer. For more information about
Geron, visit www.geron.com.
Use of Forward-Looking Statements
Except for the historical information
contained herein, this press release contains 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 Geron s plans or expectations for or of: dates to obtain
top-line data from any of the Phase 2 clinical trials; and clinical development
or success of imetelstat and GRN1005, constitute forward-looking statements.
These statements involve risks and uncertainties that can cause actual results
to differ materially from those in such forward-looking statements. These risks
and uncertainties, include, without limitation: (a) regarding dates for the
availability of top-line data delays in enrollment, delays caused by
institutional review boards or regulatory agencies, shortage of supply,
dependence on clinical trial collaborators, and safety issues; and (b) regarding
the development of imetelstat and GRN1005 - those risks and uncertainties
inherent in the development of potential therapeutic products, including without
limitation, successful clinical trial results and the protection of Geron s
intellectual property rights. Additional information and factors that could
cause actual results to differ materially from those in the forward-looking
statements are contained in Geron s periodic reports filed with the Securities
and Exchange Commission under the heading Risk Factors, including the annual
report on Form 10-K for the year ended December 31, 2011. Undue reliance should