Geron Corporation Reports Third Quarter 2017 Financial Results
November 01 2017 - 4:05PM
Geron Corporation (Nasdaq:GERN) today reported financial results
for the three and nine months ended September 30, 2017.
For the third quarter of 2017, the company reported
a net loss of $6.9 million, or $0.04 per share, compared to $3.6
million, or $0.02 per share, for the comparable 2016 period. Net
loss for the first nine months of 2017 was $20.5 million, or $0.13
per share, compared to $21.1 million, or $0.13 per share, for the
comparable 2016 period. The company ended the third quarter of 2017
with $112.7 million in cash and investments.
Revenues for the three and nine months ended
September 30, 2017 were $163,000 and $874,000, respectively,
compared to $5.1 million and $6.1 million for the comparable 2016
periods. Revenues for the three and nine month periods ending
September 30, 2016 included license fee revenue of $5.0 million in
connection with an upfront payment under a license agreement signed
in September 2016 with Janssen Pharmaceuticals, Inc. for certain
rights to specialized oligonucleotide backbone chemistry and novel
amidates.
Total operating expenses for the three and nine
months ended September 30, 2017 were $7.4 million and $22.3
million, respectively, compared to $9.0 million and $27.9 million
for the comparable 2016 periods. Research and development expenses
for the three and nine months ended September 30, 2017 were $2.6
million and $8.5 million, respectively, compared to $4.3 million
and $13.9 million for the comparable 2016 periods. The decrease in
research and development expenses for the three and nine month
periods ending September 30, 2017, compared to the same periods in
2016, primarily reflects lower costs for the company’s
proportionate share of clinical development expenses under the
imetelstat collaboration with Janssen Biotech, Inc. and reduced
personnel related expenses. General and administrative expenses for
the three and nine months ended September 30, 2017 were $4.8
million and $13.8 million, respectively, compared to $4.7 million
and $14.0 million for the comparable 2016 periods. The increase in
general and administrative expenses for the three-month period
ending September 30, 2017, compared to the same period in 2016,
primarily reflects higher non-cash stock-based compensation
expense. The decrease in general and administrative expenses for
the nine-month period ending September 30, 2017, compared to the
same period in 2016, primarily reflects lower consulting and legal
costs, partially offset by higher non-cash stock-based compensation
expense.
Interest and other income for the three and nine
months ended September 30, 2017 was $363,000 and $1.0 million,
respectively, compared to $322,000 and $871,000 for the comparable
2016 periods. The increase in interest and other income for the
three and nine month periods ending September 30, 2017, compared to
the same periods in 2016, primarily reflects higher yields on the
company’s marketable securities portfolio.
Conference Call and Webcast
At 4:30 p.m. ET on November 1, 2017, Geron’s
management will host a conference call to discuss the company’s
third quarter results as well as recent events.
Participants can access the conference call live
via telephone dialing 877-303-9139 (U.S.); 760-536-5195
(international). The conference ID is 1056465. A live audio-only
webcast is also available through the Investors section of the
company’s website at www.geron.com or at
https://edge.media-server.com/m6/p/25tyxgih. The audio webcast of
the conference call will be available for replay approximately one
hour following the live broadcast through December 1, 2017.
About Geron
Geron is a biopharmaceutical company supporting the
clinical stage development of a first-in-class telomerase
inhibitor, imetelstat, in hematologic myeloid malignancies. For
more information about Geron, visit www.geron.com.
Financial table follows.
GERON CORPORATION |
CONDENSED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
Three Months Ended |
Nine Months Ended |
|
September 30, |
|
September 30, |
(In
thousands, except share and per share data) |
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
Revenues: |
|
|
|
|
License
fees and royalties |
$ |
163 |
|
|
$ |
5,108 |
|
|
$ |
874 |
|
|
$ |
6,068 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research
and development |
|
2,637 |
|
|
|
4,319 |
|
|
|
8,510 |
|
|
|
13,927 |
|
General
and administrative |
|
4,770 |
|
|
|
4,666 |
|
|
|
13,833 |
|
|
|
14,006 |
|
Total
operating expenses |
|
7,407 |
|
|
|
8,985 |
|
|
|
22,343 |
|
|
|
27,933 |
|
Loss from
operations |
|
(7,244 |
) |
|
|
(3,877 |
) |
|
|
(21,469 |
) |
|
|
(21,865 |
) |
|
|
|
|
|
|
|
|
|
Interest
and other income |
|
363 |
|
|
|
322 |
|
|
|
1,041 |
|
|
|
871 |
|
Interest
and other expense |
|
(18 |
) |
|
|
(21 |
) |
|
|
(59 |
) |
|
|
(61 |
) |
Net
loss |
$ |
(6,899 |
) |
|
$ |
(3,576 |
) |
|
$ |
(20,487 |
) |
|
$ |
(21,055 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share: |
|
|
|
|
|
|
|
|
Net loss
per share |
$ |
(0.04 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.13 |
) |
Shares
used in computing net loss per share |
|
159,216,642 |
|
|
|
159,140,254 |
|
|
|
159,186,853 |
|
|
|
159,011,741 |
|
CONDENSED BALANCE SHEETS |
|
|
September 30, |
December 31, |
(In thousands) |
2017 |
2016 |
|
(Unaudited) |
(Note 1) |
Current assets: |
|
|
Cash,
cash equivalents and restricted cash |
$ |
10,172 |
$ |
13,078 |
Current
marketable securities |
|
86,991 |
|
102,035 |
Other
current assets |
|
1,400 |
|
999 |
Total
current assets |
|
98,563 |
|
116,112 |
|
|
|
|
|
Noncurrent marketable
securities |
|
15,560 |
|
13,954 |
Property and equipment,
net |
|
121 |
|
183 |
|
$ |
114,244 |
$ |
130,249 |
|
|
|
|
|
Current
liabilities |
$ |
5,970 |
$ |
7,869 |
Stockholders’
equity |
|
108,274 |
|
122,380 |
|
$ |
114,244 |
$ |
130,249 |
Note 1: Derived from audited financial
statements included in the company’s annual report on Form 10-K for
the year ended December 31, 2016.
CONTACT:
Anna Krassowska, Ph.D.Investor and Media
Relations650-473-7765investor@geron.commedia@geron.com
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