We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Geron (GERN) Q1 Loss In Line, Focus Remains on Imetelstat
Read MoreHide Full Article
Geron Corporation (GERN - Free Report) reported a loss of 5 cents per share in the first quarter of 2017, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company had recorded a loss of 6 cents.
So far this year, Geron’s shares have outperformed the Zacks classified Medical - Biomedical and Genetics industry. Shares of Geron rose 26.6% during the period, while the industry witnessed a gain of 2.1%.
Quarterly revenues came in at $0.53 million compared with $0.75 million in the year-ago quarter. Revenues slightly beat the Zacks Consensus Estimate of $0.34 million. Revenues comprised royalty and license fee revenues received under various non-imetelstat license agreements.
Research and development (R&D) expenses declined 32% to $3.4 million due to high start-up costs incurred in the first quarter of 2016 related to initiation of IMerge study. General and administrative expenses declined 2% to $4.7 million due to reduced consulting costs.
The company ended the quarter with $121.7 million in cash and investments.
Pipeline Update
Geron is developing anti-cancer therapies based on telomerase inhibitors. The company currently has one candidate in its pipeline, imetelstat. It is being developed for the treatment of hematologic myeloid malignancies like myelofibrosis (MF) and myelodysplastic syndromes (MDS). Geron has a collaboration with Johnson & Johnson’s (JNJ - Free Report) subsidiary Janssen for imetelstat.
In Sep 2016, Janssen announced unfavorable findings from the planned internal reviews of initial data from the two studies of imetelstat – IMbark (phase II) for the treatment of MF and IMerge (phase II/III) for the treatment of MDS.
However, in March this year, Geron informed that the treatment of patients remaining on study in IMbark and IMerge is on in order to obtain additional and more mature data.
In April, Geron informed that Janssen has completed the second internal data review of the two studies to inform on further development plans. As a result of the second internal review, both trials are continuing unmodified. For IMerge, Janssen said that the benefit/risk profile of imetelstat in the treated patients supports continued development in lower risk MDS indication. Geron mentioned that if Janssen decides to proceed to Part 2 of IMerge (a larger, 170 patient, phase III study), patient enrollment will begin in the fourth quarter of this year.
For IMbark, the results suggested that the clinical benefit and a potential overall survival benefit observed supports continuation of the trial without modifications.
Janssen is expected to evaluate maturing data from the IMbark study during next year, including an assessment of overall survival.
Meanwhile, Geron is working on expanding its pipeline and is simultaneously working to add oncology candidates, programs or companies to its portfolio.
Geron Corporation Price, Consensus and EPS Surprise
Geron currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the pharmaceutical sector are Aeglea BioTherapeutics and Akari Therapeutics, Plc (AKTX - Free Report) . While Akari Therapeutics sports a Zacks Rank #1 (Strong Buy), Aeglea BioTherapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Aeglea have increased 42.5% this year so far while loss estimates for 2017 have narrowed almost 32% in the past 30 days.
Shares of Akari Therapeutics have risen 62.3% this year so far.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Geron (GERN) Q1 Loss In Line, Focus Remains on Imetelstat
Geron Corporation (GERN - Free Report) reported a loss of 5 cents per share in the first quarter of 2017, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company had recorded a loss of 6 cents.
So far this year, Geron’s shares have outperformed the Zacks classified Medical - Biomedical and Genetics industry. Shares of Geron rose 26.6% during the period, while the industry witnessed a gain of 2.1%.
Quarterly revenues came in at $0.53 million compared with $0.75 million in the year-ago quarter. Revenues slightly beat the Zacks Consensus Estimate of $0.34 million. Revenues comprised royalty and license fee revenues received under various non-imetelstat license agreements.
Research and development (R&D) expenses declined 32% to $3.4 million due to high start-up costs incurred in the first quarter of 2016 related to initiation of IMerge study. General and administrative expenses declined 2% to $4.7 million due to reduced consulting costs.
The company ended the quarter with $121.7 million in cash and investments.
Pipeline Update
Geron is developing anti-cancer therapies based on telomerase inhibitors. The company currently has one candidate in its pipeline, imetelstat. It is being developed for the treatment of hematologic myeloid malignancies like myelofibrosis (MF) and myelodysplastic syndromes (MDS). Geron has a collaboration with Johnson & Johnson’s (JNJ - Free Report) subsidiary Janssen for imetelstat.
In Sep 2016, Janssen announced unfavorable findings from the planned internal reviews of initial data from the two studies of imetelstat – IMbark (phase II) for the treatment of MF and IMerge (phase II/III) for the treatment of MDS.
However, in March this year, Geron informed that the treatment of patients remaining on study in IMbark and IMerge is on in order to obtain additional and more mature data.
In April, Geron informed that Janssen has completed the second internal data review of the two studies to inform on further development plans. As a result of the second internal review, both trials are continuing unmodified. For IMerge, Janssen said that the benefit/risk profile of imetelstat in the treated patients supports continued development in lower risk MDS indication. Geron mentioned that if Janssen decides to proceed to Part 2 of IMerge (a larger, 170 patient, phase III study), patient enrollment will begin in the fourth quarter of this year.
For IMbark, the results suggested that the clinical benefit and a potential overall survival benefit observed supports continuation of the trial without modifications.
Janssen is expected to evaluate maturing data from the IMbark study during next year, including an assessment of overall survival.
Meanwhile, Geron is working on expanding its pipeline and is simultaneously working to add oncology candidates, programs or companies to its portfolio.
Geron Corporation Price, Consensus and EPS Surprise
Geron Corporation Price, Consensus and EPS Surprise | Geron Corporation Quote
Stocks to Consider
Geron currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the pharmaceutical sector are Aeglea BioTherapeutics and Akari Therapeutics, Plc (AKTX - Free Report) . While Akari Therapeutics sports a Zacks Rank #1 (Strong Buy), Aeglea BioTherapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Aeglea have increased 42.5% this year so far while loss estimates for 2017 have narrowed almost 32% in the past 30 days.
Shares of Akari Therapeutics have risen 62.3% this year so far.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>