Geron Corporation Reports 2011 Third Quarter Financial Results and Events
MENLO PARK, Calif., Nov 03, 2011 (BUSINESS WIRE) -- Geron Corporation (GERN)
today reported financial results for the three and nine months ended September
30, 2011.
For the third quarter of 2011, the company reported a net loss of $19.5 million,
or $0.16 per share, compared to $18.3 million, or $0.19 per share, for the
comparable 2010 period. Net loss for the first nine months of 2011 was $65.0
million, or $0.52 per share, compared to $52.0 million, or $0.54 per share, for
the comparable 2010 period. The company ended the quarter with $180.8 million in
cash and investments.
Revenues for the third quarter of 2011 were $220,000, compared to $546,000 for
the comparable 2010 period. Revenues for the first nine months of 2011 were $2.2
million, compared to $2.5 million for the comparable 2010 period. Revenues for
the third quarter and year-to-date periods of 2011 and 2010 included funding from
collaboration agreements and royalty and license fee revenues under various
agreements.
Interest and other income for the third quarter of 2011 amounted to $237,000,
compared to $223,000 for the comparable 2010 period. Interest and other income
for the first nine months of 2011 was $820,000, compared to $619,000 for the
comparable 2010 period which reflects the increase in cash and investment
balances. The company has not incurred any impairment charges on its marketable
debt securities portfolio.
Total operating expenses for the third quarter of 2011 were $20.2 million,
compared to $18.7 million for the comparable 2010 period. Research and
development expenses for the third quarter of 2011 were $16.3 million, compared
to $13.7 million for the comparable 2010 period. General and administrative
expenses for the third quarter of 2011 were $3.8 million, compared to $5.0
million for the comparable 2010 period.
Total operating expenses for the first nine months of 2011 were $67.9 million,
compared to $54.0 million for the comparable 2010 period. Research and
development expenses for the first nine months of 2011 were $49.6 million,
compared to $40.7 million for the comparable 2010 period. General and
administrative expenses for the first nine months of 2011 were $18.3 million,
compared to $13.4 million for the comparable 2010 period.
Research and development expenses increased for the three and nine month periods
ending September 30, 2011, compared to the same periods in 2010, as a result of
higher clinical drug product purchases, increased clinical trial expenses related
to the enrollment of four oncology Phase 2 clinical trials of imetelstat and the
Phase 1 clinical trial for GRNOPC1 in patients with spinal cord injury and
start-up activities for two oncology Phase 2 clinical trials for GRN1005. The
company expects research and development expenses to increase in the future with
the initiation of the GRN1005 Phase 2 clinical trials in patients with brain
metastases and ongoing support of the imetelstat Phase 2 trials and the GRNOPC1
Phase 1 trial. The variations in general and administrative expenses for the
three and nine month periods ending September 30, 2011, compared to the same
periods in 2010, primarily reflected differences in non-cash stock-based
compensation expense recognized during the respective periods.
Third Quarter 2011 Highlights:
* Geron received its first disbursement under the Targeted Clinical Development
Award from the California Institute for Regenerative Medicine. In May 2011, CIRM
awarded $25.0 million to Geron to support the clinical development of GRNOPC1,
currently in a Phase 1 trial in patients with spinal cord injury. CIRM funding
will provide matching support in the form of a product-backed loan for clinical
trial costs, non-clinical studies, analytical development and the manufacture of
cells for clinical trials.
* The Stanford University and Santa Clara Valley Medical Center enrolled the
first Californian -- and fourth person overall -- in Geron's GRNOPC1 Phase 1
trial in patients with spinal cord injury. To date, GRNOPC1 has been well
tolerated with no serious adverse events.
* John A. Scarlett, M.D., was appointed as Geron's Chief Executive Officer and a
member of the board of directors. Dr. Scarlett brings over 25 years of executive
leadership experience in the pharmaceutical and biotechnology industry to Geron.
Conference Call
At 6:00 a.m. PDT / 9:00 a.m. EDT on Friday, November 4, John A. Scarlett, M.D.,
Geron's chief executive officer, and David L. Greenwood, Geron's president and
chief financial officer, will host a conference call to discuss the company's
third quarter and year-to-date results.
Participants can access the conference call via telephone by dialing 800-706-7748
(U.S.) or 617-614-3473 (international). The passcode is 53572623. A live
audio-only Webcast is also available through a link that is posted on the Events
page in the Investors section of Geron's Website at geron.com. The
audio Web broadcast of the conference call will be available for replay until
December 5, 2011.
About Geron
Geron is developing first-in-class biopharmaceuticals for the treatment of cancer
and chronic degenerative diseases. The company is advancing anti-cancer therapies
through multiple Phase 2 clinical trials in different cancers by targeting the
enzyme telomerase and with a compound designed to penetrate the blood-brain
barrier (BBB). The company is developing cell therapies from differentiated human
embryonic stem cells, with the first product in a Phase 1 clinical trial for
spinal cord injury. For more information, visit geron.com.
Use of Forward-Looking Statements
This news release may contain 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 potential
applications of Geron's telomerase, oncology, and human embryonic stem cell
technologies, including plans and expectations for future clinical development
and future operating results and expenditures, constitute forward-looking
statements that involve risks and uncertainties, including, without limitation,
risks inherent in the development and commercialization of potential products,
the uncertainty and preliminary nature of clinical trial results or regulatory
approvals or clearances, need to raise additional capital, dependence upon
collaborators and protection of our intellectual property rights. Actual results
may differ materially from the results anticipated in these forward-looking
statements. Additional information on potential factors that could affect our
results and other risks and uncertainties are detailed from time to time in
Geron's periodic reports filed with the Securities and Exchange Commission,
including Geron's quarterly report on Form 10-Q for the quarter ended September
30, 2011. Undue reliance should not be placed on forward-looking statements,
which speak only as of the date they are made, and, except as required by law,
Geron disclaims any obligation to update these forward-looking statements to
reflect future events or circumstances.
Financial table follows.
GERON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDEDNINE MONTHS ENDED
SEPTEMBER 30,SEPTEMBER 30,
(In thousands, except share and2011201020112010
per share data)
------------------------------------------
Revenues from collaborative agreements$--$203$300$653
License fees and royalties2203431,8871,812
------------------------------------------
Total revenues2205462,1872,465
Operating expenses:
Research and development16,34513,72849,64440,662
General and administrative3,8115,02118,25113,359
------------------------------------------
Total operating expenses20,15618,74967,89554,021
------------------------------------------
Loss from operations(19,936)(18,203)(65,708)(51,556)
Unrealized gain (loss) on derivatives, net291(97)570133
Interest and other income237223820619
Losses recognized under equity method investment--(243)(503)(1,135)
Interest and other expense(114)(24)(178)(76)
----------- ------------ ------------- ------------ --
Net loss$(19,522)$(18,344)$(64,999)$(52,015)
== =========== ==== ========== ==== =========== ==== ========== ==
Basic and diluted net loss per share$(0.16)$(0.19)$(0.52)$(0.54)
== =========== ==== ========== ==== =========== ==== ========== ==
Shares used in computing basic and diluted net loss per share125,101,17797,476,668124,259,69896,400,276
== =========== ==== ========== ==== =========== ==== ========== ==
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30,DECEMBER 31,
(In thousands)20112010
--------------
(Unaudited)(Note 1)
Current assets:
Cash, restricted cash and cash equivalents$34,768$46,764
Current marketable securities108,127140,599
Other current assets4,4097,654
--------------
Total current assets147,304195,017
Noncurrent marketable securities37,92133,911
Property and equipment, net2,2473,088
Deposits and other assets9321,568
--------------
$ 188,404$ 233,584
====== ============= =======
Current liabilities$10,003$40,849
Noncurrent liabilities3,194--
Stockholders' equity175,207192,735
--------------
$ 188,404$ 233,584
====== ============= =======
Note 1: Derived from audited financial statements included in the company's
Annual Report on Form 10-K for the year ended December 31, 2010.
SOURCE: Geron Corporation
Geron Corporation
Anna Krassowska, Ph.D., 650-473-7765
Investor and Media Relations
info@geron.com |
