|Geron Corporation Reports 2012 Third Quarter Financial Results and Events|
MENLO PARK, Calif., October 30, 2012 -- Geron Corporation (Nasdaq: GERN) today reported financial results for the three and nine months ended September 30, 2012.
For the third quarter of 2012, the company reported a net loss of $16.0 million, or $0.13 per share, compared to $19.5 million, or $0.16 per share, for the comparable 2011 period. Net loss for the first nine months of 2012 was $53.0 million, or $0.42 per share, compared to $65.0 million, or $0.52 per share, for the comparable 2011 period. The company ended the quarter with $107.0 million in cash and investments.
Revenues for the third quarter of 2012 were $636,000 compared to $220,000 for the comparable 2011 period. Revenues for the first nine months of 2012 were $2.0 million compared to $2.2 million for the comparable 2011 period. Revenues for the three and nine month periods ended September 30, 2012 and 2011 included funding from a collaboration agreement as well as royalty and license fee revenues under various agreements.
Total operating expenses for the third quarter of 2012 were $16.5 million compared to $20.2 million for the comparable 2011 period. Research and development expenses for the third quarter of 2012 were $11.7 million compared to $16.3 million for the comparable 2011 period. General and administrative expenses for the third quarter of 2012 were $4.8 million compared to $3.8 million for the comparable 2011 period.
Total operating expenses for the first nine months of 2012 were $55.3 million compared to $67.9 million for the comparable 2011 period. Research and development expenses for the first nine months of 2012 were $39.6 million compared to $49.6 million for the comparable 2011 period. General and administrative expenses for the first nine months of 2012 were $15.7 million compared to $18.3 million for the comparable 2011 period.
The decrease in research and development expenses for the three and nine month periods ending September 30, 2012 compared to the same periods in 2011 primarily reflected lower expenses for personnel-related costs and scientific supplies resulting from the discontinuation of the company's stem cell programs. The increase in general and administrative expenses for the third quarter of 2012 compared to the same period in 2011 primarily reflected higher legal and consulting fees associated with the company's intellectual property portfolio and stem cell divestiture efforts. The decrease in general and administrative expenses for the nine months ended September 30, 2012 compared to the same period in 2011 primarily reflected a decline in personnel-related expenses associated with a management transition in the prior year and lower non-cash stock-based compensation expense.
Non-cash operating expenses, which primarily included stock-based compensation and expenses for stock issued for services, were approximately $2.0 million and $6.4 million for the three and nine month periods ended September 30, 2012, respectively, compared to $3.7 million and $19.3 million for the comparable 2011 periods.
Interest and other income for the third quarter of 2012 amounted to $140,000 compared to $237,000 for the comparable 2011 period. Interest and other income for the first nine months of 2012 was $481,000 compared to $820,000 for the comparable 2011 period. The decline in interest and other income primarily reflected the decrease in cash and investment balances. The company has not incurred any impairment charges on its investment portfolio.
Clinical Program Highlights
At 4:30 p.m. EDT on October 30, 2012, Geron's management will host a conference call to discuss the company's third quarter and year to date results and current events.
Participants can access the conference call via telephone by dialing 888-396-2369 (U.S.); 617-847-8710 (international). The passcode is 59899174. A live audio-only webcast is also available at http://www.media-server.com/m/acs/22783aee59e141fa307e6d06d8b8f5e9. The audio webcast of the conference call will be available for replay approximately one hour following the live broadcast until November 30, 2012.
Geron is a biopharmaceutical company developing first-in-class therapies for cancer. The company has two lead product candidates in clinical development, GRN1005 and imetelstat. GRN1005 is a peptide-drug conjugate that is designed to transport a proven anti-cancer drug, paclitaxel, across the blood-brain barrier (BBB) by targeting low-density lipoprotein receptor-related proteins (LRPs) that are expressed on the BBB. GRN1005 is being evaluated in two Phase 2 clinical trials: brain metastases arising from breast cancer and brain metastases arising from non-small cell lung cancer. Imetelstat is a telomerase inhibitor that is being evaluated in Phase 2 clinical trials for hematologic 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 statements in this press release regarding Geron's plans or expectations for or of: dates to report top-line data or other results from any of the Phase 2 clinical trials; and clinical development or success of imetelstat and GRN1005, constitute forward-looking statements. These 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: (a) regarding dates for reporting top-line data or other results - delays in enrollment, delays caused by institutional review boards or regulatory agencies, shortage of supply, dependence on clinical trial collaborators and safety issues; and (b) regarding the development of imetelstat and GRN1005 - those risks and uncertainties inherent in the development of potential therapeutic products, including without limitation, obtaining successful clinical trial results and the protection of Geron's intellectual property rights. Additional information and factors that could cause actual results to differ materially from those in the forward-looking statements are contained in Geron's periodic reports filed with the Securities and Exchange Commission, including Exhibit 99.1 to Geron's current report on Form 8-K filed on October 9, 2012. 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.
Financial table follows.
CONDENSED CONSOLIDATED BALANCE SHEETS
Note 1: Derived from audited financial statements included in the company's Annual Report on Form 10-K for the year ended December 31, 2011.
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