Geron Secures Loan Facility for Up to $75 Million
October 01 2020 - 4:30PM
Business Wire
Geron Corporation (Nasdaq: GERN), a late-stage clinical
biopharmaceutical company, today announced that it has entered into
a loan facility for up to $75 million with Hercules Capital, Inc.
(NYSE: HTGC) and Silicon Valley Bank (SVB). The loan facility
provides the Company with access to non-dilutive financial
resources to support the imetelstat development program, as well as
working capital and general corporate purposes.
“This debt financing strengthens our balance sheet and provides
additional financial flexibility as our imetelstat program advances
with two Phase 3 registration-enabling clinical trials – the
ongoing IMerge trial in lower risk myelodysplastic syndromes and
the planned trial in refractory myelofibrosis,” said Olivia K.
Bloom, Chief Financial Officer. “We look forward to working with
Hercules and SVB in the future as we include non-dilutive capital
in our financing strategy.”
The loan facility is available to Geron in three tranches. The
Company received $25 million as part of the first tranche at
closing, with the remaining $10 million available through June 15,
2021. The second tranche of an additional $15 million is available
to Geron in 2021, subject to achievement of certain clinical
milestones. The remaining $25 million in the third tranche is
available to the Company through year-end 2022, and subject to
approval from the lenders.
About Imetelstat
Imetelstat is a novel, first-in-class telomerase inhibitor
exclusively owned by Geron and being developed in hematologic
myeloid malignancies. Early clinical data suggest imetelstat may
have disease-modifying activity through the apoptosis of malignant
stem and progenitor cells, which allows potential recovery of
normal hematopoiesis. Geron’s imetelstat development program
includes two registration-enabling studies, IMerge, an ongoing
Phase 2/3 clinical trial in lower risk myelodysplastic syndromes
(MDS), and a planned Phase 3 clinical trial in refractory
myelofibrosis (MF) expected to be open for patient screening and
enrollment in the first quarter of 2021. Imetelstat has been
granted Fast Track designation by the United States Food and Drug
Administration for both the treatment of patients with non-del(5q)
lower risk MDS who are refractory or resistant to an
erythropoiesis-stimulating agent and for patients with
Intermediate-2 or High-risk MF whose disease has relapsed after or
is refractory to janus kinase (JAK) inhibitor treatment.
About Geron
Geron is a late-stage clinical biopharmaceutical company focused
on the development and potential commercialization of a
first-in-class telomerase inhibitor, imetelstat, in hematologic
myeloid malignancies. For more information about Geron, visit
www.geron.com.
Use of Forward-Looking Statements
Except for the historical information contained herein, this
press release contains forward-looking statements made pursuant to
the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. Investors are cautioned that such statements,
include, without limitation, those regarding: (i) that imetelstat
may have disease-modifying activity; (ii) that Geron will achieve
in 2021 the requisite milestones to enable it to borrow an
additional $15 million; (iii) that the planned Phase 3 clinical
trial in refractory MF will be open for screening and enrollment in
the first quarter of 2021; (iv) that the $15 million second tranche
is subject to achievement of certain clinical milestones; and (v)
other statements that are not historical facts, constitute
forward-looking statements. These forward-looking statements
involve risks and uncertainties that can cause actual results to
differ materially from those in such forward-looking statements.
These risks and uncertainties, include, without limitation, risks
and uncertainties related to: (a) whether the current or evolving
effects of the COVID-19 pandemic and resulting global economic and
financial disruptions will materially and adversely impact Geron’s
business and business prospects, its financial condition and the
future of imetelstat; (b) whether Geron overcomes all of the
potential delays and other adverse impacts caused by the current or
evolving effects of the COVID-19 pandemic, and overcomes all the
clinical, safety, efficacy, technical, scientific, intellectual
property, manufacturing and regulatory challenges in order to meet
the expected timeline for opening the Phase 3 clinical trial in MF
in the first quarter of 2021, and the planned milestones; (c)
whether regulatory authorities permit the further development of
imetelstat on a timely basis, or at all, without any clinical
holds; (d) whether imetelstat is demonstrated to be safe and
efficacious in clinical trials; (e) whether any future efficacy or
safety results may cause the benefit-risk profile of imetelstat to
become unacceptable; (f) whether imetelstat actually demonstrates
disease-modifying activity in patients; (g) Geron’s need to raise
substantial capital in order to complete the development and
commercialization of imetelstat, including to meet all of the
expected timelines and planned milestones; (h) whether the Company
is able to achieve the required clinical milestones to be eligible
for the $15 million second tranche; and (i) whether there are
failures or delays in manufacturing sufficient quantities of
imetelstat or other clinical trial materials in a timely manner,
whether due to the current or evolving effects of the COVID-19
pandemic or otherwise. Additional information on the above risks
and uncertainties and additional risks, uncertainties and factors
that could cause actual results to differ materially from those in
the forward-looking statements are contained in Geron’s filings and
periodic reports filed with the Securities and Exchange Commission
under the heading “Risk Factors” and elsewhere in such filings and
reports, including Geron’s Quarterly Report on Form 10-Q for the
quarter ended June 30, 2020 and future filings and reports by
Geron. Undue reliance should not be placed on forward-looking
statements, which speak only as of the date they are made, and the
facts and assumptions underlying the forward-looking statements may
change. Except as required by law, Geron disclaims any obligation
to update these forward-looking statements to reflect future
information, events or circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20201001006103/en/
Suzanne Messere Investor and Media Relations investor@geron.com
media@geron.com
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