Full Press Release Details
Press Release Dated March 1, 2017
Geron Corporation Reports Fourth
Quarter and Annual 2016 Financial Results
Conference Call Scheduled for 4:30
p.m. ET Today, March 1
MENLO PARK, Calif., March 1, 2017
-- Geron Corporation (Nasdaq: GERN) today
reported financial results for the fourth quarter and year ended December 31,
2016 and recent events.
Fourth Quarter and Year-End 2016
For each of the fourth quarter of 2016 and
2015, the company reported a net loss of $8.5 million, or $(0.05) per share. For
2016, the company reported a net loss of $29.5 million, or $(0.19) per share,
compared to net income of $46,000, or $0.00 per share, for 2015. The company
ended 2016 with $129.1 million in cash and investments.
Revenues for the fourth quarter of 2016
were $94,000 compared to $220,000 for the comparable 2015 period. Revenues for
2016 were $6.2 million compared to $36.4 million for 2015. Revenues for 2016
included the full recognition of an upfront payment of $5.0 million from Janssen
Pharmaceuticals, Inc. under a license agreement for certain rights to the
company s specialized oligonucleotide backbone chemistry and novel amidates.
Revenues for 2015 included the full recognition of the $35.0 million upfront
payment from Janssen Biotech, Inc. (Janssen) as collaboration revenue upon the
company s transfer of the imetelstat license rights and completion of technology
transfer-related activities outlined under the imetelstat collaboration
agreement with Janssen. The upfront cash payment was received in December 2014
and recorded as deferred revenue at that time.
Total operating expenses for each of the
fourth quarter of 2016 and 2015 were $8.9 million. Total operating expenses for
2016 were $36.8 million compared to $36.9 million for 2015. Operating expenses
for 2015 included restructuring charges of $1.3 million in connection with the
company s organizational resizing announced in March 2015.
Research and development expenses for the
fourth quarter of 2016 were $4.1 million compared to $4.0 million for the
comparable 2015 period. Research and development expenses for 2016 were $18.0
million compared to $17.8 million for 2015. The increase in research and
development expenses in 2016 compared to 2015 primarily reflected the net result
of higher costs for the company s proportionate share of clinical development
expenses under the imetelstat collaboration with Janssen, partially offset by
reduced personnel-related costs resulting from the March 2015 organizational
resizing and lower costs for the manufacturing of imetelstat drug
General and administrative expenses for
the fourth quarter of 2016 were $4.8 million compared to $4.9 million for the
comparable 2015 period. General and administrative expenses for 2016 were $18.8
million compared to $17.8 million for 2015. The increase in general and
administrative expenses in 2016 compared to 2015 primarily reflected the net
result of higher non-cash stock-based compensation expense and an increased
allocation of facilities and other overhead costs to general and administrative
activities, partially offset by lower consulting and legal costs.
Interest and other income for the fourth
quarter of 2016 was $321,000 compared to $196,000 for the comparable 2015
period. Interest and other income for 2016 was $1.2 million compared to $677,000
The increase in interest and other income
for 2016 compared to 2015 primarily reflected higher yields on the company s
marketable securities portfolio.
In 2016, the imetelstat program
progressed with the ongoing clinical trials in patients with myelofibrosis and
myelodysplastic syndromes being conducted by Janssen, as well as through a range
of preclinical and translational studies in collaboration with academic
scientists around the world, said John A. Scarlett, M.D., Geron s President and
Chief Executive Officer. 2017 will be another important year for imetelstat. We
expect Janssen to conduct the second internal reviews of data from IMbark and
IMerge to inform Janssen s decisions regarding further development plans for the
drug, including prospects around dosing in IMbark and opening the Phase 3 part
of IMerge. We expect Janssen s decision-making to occur in the second quarter of
Imetelstat Clinical Development by
| In January, the first patient was dosed in IMerge, a Phase 2/3 clinical trial to evaluate imetelstat in transfusion dependent patients with IPSS low or intermediate-1 risk myelodysplastic syndromes (MDS) who have relapsed after or are refractory to prior treatment with an erythropoiesis stimulating agent (ESA). IMerge is the second clinical trial to be initiated and conducted by Janssen under the terms of the exclusive worldwide imetelstat license and collaboration agreement between Geron and Janssen. The first, IMbark, was designed to evaluate two dose levels of imetelstat in patients with intermediate-2 or high risk myelofibrosis (MF) who have relapsed after or are refractory to prior treatment with a JAK inhibitor. | |
| In September, Janssen completed planned internal reviews of data from IMbark and IMerge. As a result of these data reviews, both trials are continuing in order to obtain additional and more mature data. While patients remaining in the treatment phase of IMbark and IMerge continue to be dosed with imetelstat, new patient enrollment in both trials is suspended until completion of the second internal data reviews. |
Publications and Presentations
| In March, Blood Cancer Journal published clinical safety and efficacy data on imetelstat from patients with a form of MDS known as refractory anemia with ringed sideroblasts (MDS-RARS) enrolled as part of the Mayo Clinic Pilot Study. The data included nine patients enrolled in the study cohort, classified as having either IPSS intermediate-1 or intermediate-2 risk disease. Three of the eight (37.5%) patients who were dependent on red blood cell transfusions at study entry became transfusion independent for at least eight weeks. The median duration of transfusion independence was 28 weeks (range: nine weeks to 37 weeks). | ||
| At the American Association for Cancer Research annual meeting in April, non-clinical data on imetelstat were presented describing: | ||
| Results from a study in which imetelstat treatment of acute myeloid leukemia (AML) cell lines enhanced the effects of hypomethylating agents currently used for the treatment of AML. | ||
| Results from non-clinical studies that provide further evidence of potential on-target mechanisms of telomerase inhibition by imetelstat underlying the reduction in platelets observed in previously conducted imetelstat clinical trials. | ||
| At the American Society of Hematology annual meeting in December, data related to the imetelstat program were presented describing: | ||
| Results from a non-clinical study showing that treatment with imetelstat prolonged overall survival of AML xenografts derived from nine out of 15 individual patient samples compared to saline-treated controls. |
| An analysis of treatment patterns and outcomes of patients with MF from two United States medical health insurance claims databases showing a median overall survival of seven months among patients who failed or discontinued frontline ruxolitinib. | |
| Telomere length dynamics from the prior Geron-sponsored proof-of-concept study in patients with essential thrombocythemia (ET) showing that in 10 out of 13 patients, telomere length in granulocytes was higher after nine months of treatment with imetelstat and the change correlated with the reduction of JAK2V617F mutational burden, suggesting that imetelstat may suppress neoplastic clones and favor recovery of normal hematopoiesis in these patients. | |
| A preliminary investigation suggesting that imetelstat treatment reduces the number of leukemia progenitor cells detected in bone marrow from xenograft models of chronic myeloid leukemia in blast crisis. |
These publications and posters are
available through the Publications page in the R&D section of Geron s
website (www.geron.com).
Intellectual Property
| In the first quarter of 2017, Janssen initiated the process for the second internal data reviews for both IMbark and IMerge. The company expects the outcomes from the second internal data reviews, regulatory considerations and the totality of other program information, including the evolving treatment landscapes in MF and MDS, to inform Janssen s decisions regarding future development plans for imetelstat. | |
| Data from the Phase 2 part of IMerge is expected to be submitted by Janssen for presentation at a medical conference in 2017. |
Conference Call and Webcast
At 4:30 p.m. ET on March 1, 2017, Geron s
management will host a conference call to discuss the company s fourth quarter
and annual results as well as recent company events.
Participants can access the conference
call live via telephone dialing 877-303-9139 (U.S.); 760-536-5195
(international). The conference ID is 53505663. A live audio-only webcast is
also available through the Investors section of our website at www.geron.com or
at http://edge.media-server.com/m/p/ouvh9xwx. The audio webcast of the
conference call will be available for replay approximately one hour following
the live broadcast through April 1, 2017.
Geron is a biopharmaceutical company
supporting the clinical stage 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 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: (i) continued conduct by Janssen of IMbark or IMerge and/or
any further development of imetelstat; (ii) Janssen obtaining additional or more
mature data from IMbark or IMerge; (iii) that Janssen will conduct any
additional or further data reviews of IMbark or IMerge, and the timing of such
data reviews; (iv) potential outcomes of any data reviews conducted by Janssen;