Geron Unveils Further Work Cuts, Discontinues Discovery Research Program
By Nathalie Tadena
Geron Corp. (GERN) unveiled plans to cut its workforce by about a third and discontinue its discovery research and companion diagnostics programs, as the pharmaceutical company looks to focus solely on developing its imetelstat drug for hematologic myeloid malignancies. The company said it is closing its research laboratory facility and reducing its workforce from 64 positions to 44. Geron expects to incur restructuring charges of about $1.9 million this year. The discontinued programs and activities were expected to cost up to $19 million during the periods 2014 through 2015. Geron also said its chief medical officer Stephen Kelsey will leave the company on May 3. Geron plans to focus its resources on hematologic myeloid malignancies and does not plan to advance clinical development of imetelstat, its telomerase inhibitor, in non-small cell lung cancer with short telomeres or in essential thrombocythemia. "Diseases such as myelofibrosis represent the greatest value-creating opportunity for the company because many patients with these diseases have significant unmet medical needs and imetelstat has the potential to be a disease-modifying treatment," said Chief Executive John A. Scarlett. Geron also reported its first-quarter loss narrowed to $11.9 million, or nine cents a share, from $18.7 million, or 15 cents a share, a year earlier. Revenue declined about 39% to $765,000, but expenses fell, too. The latest job cuts come after Geron in December cut its workforce by 40% and stopped developing its treatment for brain cancers, part of efforts to focus on developing imetelstat. Shares closed at $1.17 and were unchanged after hours. The stock has fallen 30% over the past three months. |
