Full Press Release Details
Press Release Dated October 30, 2012
2012 Third Quarter Financial
MENLO PARK, Calif., October 30,
2012 -- Geron Corporation (Nasdaq: GERN) today reported financial results for the three and nine
months ended September 30, 2012.
For the third quarter of 2012, the company reported a net loss of $16.0
million, or $0.13 per share, compared
to $19.5 million, or $0.16 per share, for the comparable 2011 period. Net loss for
the first nine months of 2012 was $53.0 million, or $0.42 per share, compared to $65.0 million,
or $0.52 per share, for the comparable 2011 period. The company ended the quarter with
$107.0 million in cash and investments.
Revenues for the third quarter of 2012
were $636,000 compared to $220,000 for the comparable 2011 period. Revenues for the
first nine months of 2012 were $2.0 million compared to $2.2 million for the
comparable 2011 period. Revenues for the three and nine month periods ended September 30, 2012 and
2011 included funding from a collaboration agreement as well as royalty and license
fee revenues under various agreements.
Total operating expenses for the third
quarter of 2012 were $16.5 million compared to $20.2 million for the comparable 2011 period.
Research and development expenses for the third quarter of 2012 were $11.7 million
compared to $16.3 million for the comparable 2011 period. General and administrative
expenses for the third quarter of 2012 were $4.8 million compared to $3.8 million for the
comparable 2011 period.
Total operating expenses for the first
nine months of 2012 were $55.3 million compared to $67.9 million for the comparable 2011
period. Research and development expenses for the first nine months of 2012 were $39.6 million
compared to $49.6 million for the comparable 2011 period. General and administrative
expenses for the first nine months of 2012 were $15.7 million compared to $18.3 million for the
comparable 2011 period.
The decrease in research and development expenses for the three and nine
month periods ending September 30, 2012
compared to the same periods in 2011 primarily reflected lower expenses
for personnel-related costs and
scientific supplies resulting from the discontinuation of the company s stem cell programs. The increase in general and
administrative expenses for the third
quarter of 2012 compared to the same period in 2011 primarily reflected higher legal and consulting
fees associated with the company s intellectual property portfolio and stem cell divestiture
efforts. The decrease in general and administrative expenses for the nine months ended
September 30, 2012 compared to the same period in 2011 primarily reflected a decline in personnel-related
expenses associated with a management transition in the prior year and lower
non-cash stock-based
compensation expense.
operating expenses, which primarily included stock-based compensation and expenses for stock issued for services, were approximately $2.0 million
and $6.4 million for the three and nine month periods ended September 30, 2012, respectively,
compared to $3.7 million and $19.3 million for the comparable 2011 periods.
Interest and other income for the third
quarter of 2012 amounted to $140,000 compared to $237,000 for the comparable 2011 period.
Interest and other income for the first nine months of 2012 was $481,000 compared to $820,000
for the comparable 2011 period. The decline in interest and other income primarily
reflected the decrease in cash and investment balances. The company has not incurred any
impairment charges on its investment portfolio.
GRN1005 in brain metastases arising from breast
cancer (GRABM-B): The Phase 2 single
evaluating GRN1005 in patients with brain metastases arising from breast
enrollment. The study will include approximately 50 patients with
disease and 50 patients with HER2-negative disease. Patients with HER2-positive disease will receive concomitant
trastuzumab. The primary endpoint of the study is intracranial response rate. Geron
announced that interim data from the GRABM-B study are scheduled for a poster presentation
on December 6, 2012 at the San Antonio Breast Cancer Symposium. Geron continues to
expect to report top-line data from GRABM-B by the end of the second quarter of 2013.
GRN1005 in brain metastases arising from
non-small cell lung cancer (GRABM-L): The Phase
2 single agent, single arm trial of GRN1005 in patients with non-small cell lung cancer is currently behind
projected enrollment. The primary endpoint of the study is overall response rate, which
includes both intra-cranial and extra-cranial disease.
Imetelstat in hematologic malignancies:
Two single-arm Phase 2 clinical trials of
hematologic malignancies, one in essential thrombocythemia (ET) and the other
myeloma, continued enrollment. These two studies are designed to use
evaluate whether inhibiting telomerase will selectively reduce the
the malignant progenitor cells responsible for these diseases. The study
ET is also evaluating clinical and hematological responses. Geron announced
from the ET trial are scheduled for an oral presentation on December
American Society of Hematology annual meeting.
Imetelstat in solid tumors: In September 2012, the company announced that it had
randomized Phase 2 study of imetelstat in metastatic HER2-negative breast cancer and that the
randomized Phase 2 study of imetelstat in advanced non-small cell lung cancer (NSCLC) would continue,
because an interim analysis of the NSCLC study suggested a modest trend of efficacy in
favor of the imetelstat arm.
Executive Vice President, Technical Operations
appointed: In September, Andrew J.
Ph.D., joined the company as Executive Vice President of Technical Operations.
In this role, Dr. Grethlein oversees Geron s
manufacturing and quality functions. Dr. Grethlein
brings over 20 years of biotechnology industry experience in manufacturing and
development stage as well as commercial operations.
appointed: In September, Susan M.
Molineaux, Ph.D., and Daniel M. Bradbury joined the company s board of directors. Dr.
Molineaux joined the board's nominating and corporate governance committee and Mr.
Bradbury joined the board's audit committee. Dr. Molineaux brings substantial experience
as an oncology drug developer. She co-founded Proteolix, Inc. and was responsible for leading the
Proteolix's second generation proteasome inhibitor, carfilzomib
Kyprolis), for the treatment of multiple myeloma, from discovery through
clinical trials for accelerated approval, until the company s acquisition by
Pharmaceuticals, Inc. in November 2009. Mr. Bradbury was the CEO of Amylin
Inc. from 2007 until the company was acquired by Bristol-Myers Squibb Company for approximately $7
billion in August 2012. He served as Amylin's President from June 2006 until March
2007, as Chief Operating Officer from June 2003 until June 2006, as Executive Vice
President from June 2000 until June 2003 and in other positions in corporate development and
marketing from 1994 until 2000. In addition, Mr. Bradbury served as a member of the