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Geron Corporation Reports Second Quarter 2017 Financial Results

MENLO PARK, Calif., Aug. 09, 2017 (GLOBE NEWSWIRE) -- Geron Corporation (Nasdaq:GERN) today reported financial results for the three and six months ended June 30, 2017.

For the second quarter of 2017, the company reported a net loss of $6.4 million, or $0.04 per share, compared to $8.6 million, or $0.05 per share, for the comparable 2016 period. Net loss for the first six months of 2017 was $13.6 million, or $0.09 per share, compared to $17.5 million, or $0.11 per share, for the comparable 2016 period. The company ended the second quarter of 2017 with $117.2 million in cash and investments.

Revenues for the three and six months ended June 30, 2017 were $174,000 and $711,000, respectively, compared to $211,000 and $960,000 for the comparable 2016 periods. Revenues for the three and six month periods ending June 30, 2017 and 2016 included royalty and license fee revenues under various non-imetelstat license agreements.

Total operating expenses for the three and six months ended June 30, 2017 were $6.9 million and $14.9 million, respectively, compared to $9.1 million and $18.9 million for the comparable 2016 periods. Research and development expenses for the three and six months ended June 30, 2017 were $2.5 million and $5.9 million, respectively, compared to $4.6 million and $9.6 million for the comparable 2016 periods. The decrease in research and development expenses for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects lower costs for the proportionate share of clinical development expenses under the collaboration with Janssen Biotech, Inc. and reduced personnel related expenses. General and administrative expenses for the three and six months ended June 30, 2017 were $4.4 million and $9.1 million, respectively, compared to $4.5 million and $9.3 million for the comparable 2016 periods. The decrease in general and administrative expenses for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects lower consulting costs.

Interest and other income for the three and six months ended June 30, 2017 was $346,000 and $678,000, respectively, compared to $293,000 and $549,000 for the comparable 2016 periods. The increase in interest and other income for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects higher yields on the company’s marketable securities portfolio.

Due to the recent announcement and conference call on updates to the clinical development plans for imetelstat, Geron’s management will not be hosting a separate conference call in connection with these financial results.

About Geron

Geron is a clinical stage biopharmaceutical company focused on the collaborative 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 Six Months Ended
    June 30, June 30,
(In thousands, except share and per share data)   2017     2016     2017     2016  
           
Revenues:          
  License fees and royalties    $ 174     $ 211     $ 711     $ 960  
                   
Operating expenses:                  
  Research and development      2,499       4,575       5,873       9,608  
  General and administrative         4,406          4,547          9,063          9,340  
Total operating expenses         6,905          9,122          14,936          18,948  
Loss from operations     (6,731 )     (8,911 )     (14,225 )     (17,988 )
                   
Interest and other income      346       293       678       549  
Interest and other expense        (20 )          (19 )          (41 )          (40 )
Net loss    $    (6,405 )   $   (8,637 )   $    (13,588 )   $    (17,479 )
                               
Basic and diluted net loss per share:                  
  Net loss per share    $    (0.04 )   $    (0.05 )   $    (0.09 )   $    (0.11 )
  Shares used in computing net loss per share      159,182,367        158,998,931       159,171,959       158,947,485  


CONDENSED BALANCE SHEETS
       
    June 30, December 31,
(In thousands)   2017 2016
    (Unaudited) (Note 1)
Current assets:      
Cash, cash equivalents and restricted cash    $ 6,874 $ 13,078
Current marketable securities     88,239   102,035
Other current assets            6,953      999
Total current assets      102,066   116,112
           
Noncurrent marketable securities      22,076   13,954
Property and equipment, net         140     183
    $   124,282 $ 130,249
           
Current liabilities    $ 11,274 $ 7,869
Stockholders’ equity      113,008   122,380
    $ 124,282 $ 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 Relations
650-473-7765
investor@geron.com
media@geron.com

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Geron Corporation
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