Full Press Release Details
Press Release Dated April
Geron Corporation Reports
First Quarter 2015 Financial Results and Recent Events
Conference and Annual Stockholders Meeting Also Announced
Calif., April 30, 2015 -- Geron Corporation (Nasdaq: GERN) today reported
financial results and recent events for the first quarter ended March 31, 2015.
First Quarter 2015 Results
For the first quarter of 2015,
the company reported operating revenues of $537,000 and operating expenses of
$10.0 million compared to $474,000 and $9.2 million, respectively, for the
comparable 2014 period. Operating expenses in the first quarter of 2015 included
restructuring charges of $406,000. Net loss for the first quarter of 2015 was
$9.3 million, or $0.06 per share, compared to $8.4 million, or $0.06 per share,
for the comparable 2014 period. The company ended the first quarter of 2015 with
$163.8 million in cash and investments.
Revenues for the first quarter of 2015
and 2014 included royalty and license fee revenues under various agreements.
Interest and other income for the first quarter of 2015 was $149,000 compared to
$83,000 for the comparable 2014 period. The increase in interest and other
income in 2015 compared to 2014 was due to higher cash and investment balances
Research and development
expenses for the first quarter of 2015 were $5.0 million compared to $5.2
million for the comparable 2014 period. The decrease in research and development
expenses was primarily the net result of lower manufacturing costs for
imetelstat drug product, partially offset by increased costs for the development
of imetelstat for hematologic myeloid malignancies in collaboration with Janssen
Biotech, Inc. (Janssen). The company expects research and development expenses
to increase during the remainder of the year as the development of imetelstat
continues in collaboration with Janssen.
General and administrative
expenses for the first quarter of 2015 were $4.6 million compared to $4.0
million for the comparable 2014 period. The increase in general and
administrative expenses was primarily the result of higher non-cash stock-based
compensation expense, increased legal fees for the defense against the
securities class action and derivative lawsuits filed against the company and
higher consulting costs in connection with business development activities to
identify potential new product candidates.
Recent Company Events
Status of Imetelstat
Collaboration with Janssen. In March 2015, the company transferred its investigational new drug
application (IND) for imetelstat to Janssen, as required by the collaboration
agreement with them. In addition, in March 2015, the company transferred the IND
for the study in patients with myelofibrosis being conducted at Mayo Clinic to
Janssen, whereupon Janssen assumed responsibility as the sponsor for the
The company expects Janssen to
initiate a Phase 2 study in patients with myelofibrosis in mid-2015, followed by
a Phase 2 study in patients with myelodysplastic syndromes at the end of 2015.
As part of the study start-up activities, study design information for the Phase
2 study in patients with myelofibrosis was posted on clinicaltrials.gov. The
list of participating clinical trial sites, including multiple sites in the
United States and Europe, will be uploaded on an ongoing basis. The study is not
yet open for enrollment.
Resizing. Given projected
reduced operational demands as a result of the collaboration with Janssen, in
March 2015 the company announced an organizational resizing to reduce its
workforce from 39 to 21 positions. The company expects the majority of the
reduction in its workforce to be completed by the end of the second quarter of
2015. In connection with this action, the company expects to incur aggregate
restructuring charges of approximately $1.7 million, the majority of which will
be recognized in the first half of 2015. Approximately $1.4 million of these
charges is expected to be paid in cash, the majority of which is expected to be
paid during 2015. The company expects the resizing to reduce the company s
personnel-related costs by approximately $5.0 million on an annualized basis.
Conference and Annual Stockholders Meeting
Geron is scheduled to present
at the Bank of America Merrill Lynch 2015 Healthcare Conference in Las Vegas,
Nevada at 3:40 p.m. Pacific Time on Wednesday, May 13. The presentation will
include a review of the study design for the planned Phase 2 clinical trial of
imetelstat in myelofibrosis patients to be conducted by Janssen. A live webcast
of the presentation will be available through the Investor Relations pages of
Geron s website or at
Following the live presentation, the webcast will be archived and available for
replay at the same address for a period of 30 days.
Geron s annual stockholders
meeting will be held on Monday, May 18, 2015 at 3:00 p.m. Pacific Time. All
stockholders are invited to attend the meeting in person at the Westin San
Francisco Airport, One Old Bayshore Highway, Millbrae, California 94030 or via
conference call by dialing 877-303-9139 (U.S.); 760-536-5195 (international).
The passcode is 10445504. A live audio-only webcast will also be available at
Given these upcoming events,
the company will not be hosting a first quarter earnings call.
Geron is a clinical stage
biopharmaceutical company focused on the collaborative development of a
first-in-class telomerase inhibitor, imetelstat, in hematologic myeloid
malignancies. For more information about Geron, visit www.geron.com.
Use of Forward-Looking
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: (i) Geron s potential receipt of
development, regulatory and sales milestones, as well as royalties on potential
future sales of imetelstat commercialized under the collaboration agreement with
Janssen; (ii) timing of planned and potential clinical trials of imetelstat to
be conducted under the collaboration agreement with Janssen, including the Phase
2 study in myelofibrosis and the Phase 2 study in myelodysplastic syndromes, and
other potential activities under the collaboration agreement with Janssen; (iii)
the safety and efficacy of imetelstat; (iv) financial projections and