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Q1/10 Financial Results and Highlights, Geron (GERN)

For Q1/10, GERN reported operating revenues of $918 K and operating expenses of $17.4 M.   Net loss for Q1/10 was $16.6 M, or $(0.18) per share.  

 

  • Revenues included funding from collaboration agreements and royalty and license fee revenues under various agreements. 
  • Interest and other income amounted to $202,000.  
  • R&D expenses for Q1/10 were $13.5 M.  The decrease in expenses reflected lower manufacturing costs for GRNVAC1 due to the completion of patient enrollment for that Phase II clinical trial, offset by increased preclinical study costs for GRNOPC1. GERN expects its R&D expenses to increase in the future as it advances imetelstat to Phase II clinical trials,
  • G&A expenses for Q1/10 were $3.9 M. The increase in expenses was primarily the result of higher legal costs associated with patents and consulting costs.
  • Ended Q1/10 with $166.5 M in cash and investments.

Q1/10 Highlights:

  • Published preclinical data in Clinical Cancer Research demonstrating that imetelstat (GRN163L) inhibited telomerase activity and reduced tumor growth rate and size in xenograft models of glioblastoma, and inhibited the activity of glioblastoma stem cells in culture. These preclinical data showed that imetelstat crossed the blood-brain barrier that limits the delivery of most therapeutic drugs to brain tumors,
  • Outstanding warrants held by certain institutional investors were exchanged for shares of common stock. In connection with the exchange, GERN sold additional shares of common stock for gross proceeds of $10 M to the investors at a premium to the then current market price of common stock and issued a call option to the investors to purchase an additional $5 M of common stock at the premium price,
  • A new collaboration was formed to investigate the therapeutic potential of human embryonic stem cell (hESC)-based product, GRNOPC1, for Alzheimer’s disease. The collaboration is being jointly funded by GERN and a University of California Discovery Research and Training Grant,
  • Scientists and collaborators gave 5 presentations describing recent data on imetelstat (GRN163L) and highlighted the drug’s activity against cancer stem cells at the American Association for Cancer Research (AACR) Special Conference on The Role of Telomeres and Telomerase in Cancer Research. Preclinical data has shown that imetelstat exhibits anti-cancer stem cell activity in nine different human cancers,
  • Corning Incorporated launched the Synthemax™ surface, a new synthetic matrix for growing hESCs. The new product was developed under a collaboration and license agreement between Geron and Corning,
  • Appointed Thomas Hofstaetter, PhD to its board of directors and the board’s compensation committee. They also announced that Patrick J. Zenner, who has served as a director of the company since July 2001, will retire from the board at the 5/19/10 annual meeting of stockholders.