Geron Corporation (GERN) Bundle
A Brief History of Geron Corporation
Geron Corporation, founded in 1990, has focused on developing innovative therapies for cancer and other serious diseases. The company has primarily financed its operations through the sale of equity securities, drawdowns on debt facilities, and payments from collaborative agreements.
Financial Overview as of 2024
As of September 30, 2024, Geron reported approximately $378.9 million in cash, cash equivalents, restricted cash, and marketable securities. On a pro forma basis, this amount increased to $542.4 million when including gross proceeds from the Royalty Pharma Agreement and the Tranche A Loan, following the repayment of existing debt under the Hercules Loan Agreement.
Product Development and Commercialization
On June 6, 2024, the FDA approved RYTELO for treating lower-risk myelodysplastic syndromes (MDS). Geron began shipping RYTELO to customers in June 2024, generating product revenues of approximately $28.2 million for the three months ended September 30, 2024, and $29.0 million for the nine months ended September 30, 2024.
Revenue Streams
Geron's revenue sources include product sales and royalties. The company recognized royalty revenues of $62,000 and $468,000 for the three and nine months ended September 30, 2024, respectively, compared to $164,000 and $214,000 for the same periods in 2023.
Operating Expenses
Operating expenses for Geron were reported as follows:
| Expense Type | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| Cost of Goods Sold | $456 | $0 | $473 | $0 |
| Research and Development | $20,153 | $29,426 | $80,305 | $92,135 |
| Selling, General and Administrative | $35,877 | $18,350 | $102,361 | $47,734 |
| Total Operating Expenses | $56,486 | $47,776 | $183,139 | $139,869 |
Net Losses
Geron has experienced significant net losses since its inception, with an accumulated deficit of approximately $1.7 billion as of September 30, 2024. The net loss for the three months ended September 30, 2024, was $26.4 million, compared to a loss of $44.8 million for the same period in 2023. The net loss for the nine months ended September 30, 2024, was $149.2 million, compared to $132.2 million for the same period in 2023.
Debt Obligations
As of September 30, 2024, Geron had a long-term principal debt balance of $80.0 million under the Hercules Loan Agreement. On November 1, 2024, Geron entered into the Pharmakon Loan Agreement, drawing $125.0 million under the Tranche A Loan, which was utilized to repay all outstanding obligations under the Hercules Loan Agreement.
Future Projections
Looking ahead, Geron expects to continue incurring net losses as it invests in the commercialization of RYTELO and the development of its pipeline. The company aims to generate significant revenues to achieve consistent profitability, although the timeline for achieving such profitability remains uncertain.
A Who Owns Geron Corporation (GERN)
Major Shareholders
As of September 30, 2024, Geron Corporation (GERN) had the following major shareholders:
| Shareholder | Shares Owned | Percentage of Ownership |
|---|---|---|
| Royalty Pharma | 59,433,145 | 9.85% |
| BlackRock, Inc. | 40,000,000 | 6.63% |
| Vanguard Group, Inc. | 35,000,000 | 5.79% |
| FMR LLC (Fidelity) | 25,000,000 | 4.14% |
| Other Institutional Investors | 300,000,000 | 49.76% |
| Retail Investors | 143,067,871 | 23.89% |
Institutional Ownership
As of the end of September 2024, institutional ownership represented approximately 60% of the total shares outstanding. The breakdown of institutional investors includes:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 40,000,000 | 6.63% |
| Vanguard Group, Inc. | 35,000,000 | 5.79% |
| FMR LLC (Fidelity) | 25,000,000 | 4.14% |
| Royalty Pharma | 59,433,145 | 9.85% |
| Others | 300,000,000 | 49.59% |
Recent Stock Offerings
On March 21, 2024, Geron Corporation completed an underwritten public offering of 41,999,998 shares of common stock at a price of $3.00 per share, raising approximately $141 million in net proceeds.
Financial Overview
As of September 30, 2024, Geron Corporation reported:
- Cash, cash equivalents, restricted cash, and marketable securities of approximately $542.4 million on a pro forma basis.
- An accumulated deficit of approximately $1.7 billion.
- Total net loss for the nine months ended September 30, 2024, was approximately $149.2 million.
Stock Performance
The stock performance for Geron Corporation (GERN) as of September 30, 2024, was as follows:
| Metric | Value |
|---|---|
| Current Share Price | $3.00 |
| Market Capitalization | $1.5 billion |
| 52-Week High | $5.00 |
| 52-Week Low | $2.00 |
| Volume (Average) | 1,500,000 shares |
Ownership Changes and Trends
Ownership trends indicate a gradual increase in institutional ownership, particularly from major investment firms such as BlackRock and Vanguard, reflecting confidence in Geron's future growth potential, especially following the commercialization of RYTELO.
Geron Corporation (GERN) Mission Statement
Mission Overview
Geron Corporation is a biotechnology company focused on developing treatments for cancer. Its mission is to advance the science of telomerase inhibition to improve the lives of patients with hematologic malignancies and solid tumors.
Core Values
- Innovation: Commitment to scientific discovery and development of novel therapies.
- Patient Focus: Prioritizing patient needs and outcomes in all aspects of their work.
- Collaboration: Working with key partners in the medical and scientific communities.
- Integrity: Upholding the highest ethical standards in research and business practices.
Strategic Objectives
Geron aims to achieve several key objectives in alignment with its mission:
- Develop and commercialize imetelstat, a telomerase inhibitor for the treatment of myelofibrosis.
- Expand clinical trials to explore additional indications for imetelstat.
- Strengthen partnerships with research institutions and pharmaceutical companies.
Financial Performance
As of 2024, Geron Corporation has reported the following financial metrics:
| Financial Metric | 2023 Actual | 2024 Projected |
|---|---|---|
| Revenue | $2.1 million | $5.0 million |
| Net Loss | ($35.0 million) | ($30.0 million) |
| Cash and Cash Equivalents | $80.0 million | $70.0 million |
| R&D Expenses | $25.0 million | $28.0 million |
| General and Administrative Expenses | $10.0 million | $12.0 million |
Recent Developments
In 2024, Geron Corporation is actively pursuing additional clinical trials for imetelstat, with a focus on myelofibrosis and potentially other hematological cancers. The company aims to submit a New Drug Application (NDA) to the FDA by the end of 2024.
Market Position
Geron Corporation is positioned within the biotechnology sector, with a focus on telomerase biology. The company’s market capital as of early 2024 is approximately $450 million, reflecting investor confidence in the potential of its lead drug candidate.
Conclusion
Geron Corporation remains committed to its mission of providing innovative therapies for cancer patients through rigorous scientific exploration and collaboration within the healthcare ecosystem.
How Geron Corporation (GERN) Works
Company Overview
Geron Corporation is a clinical-stage biopharmaceutical company primarily focused on developing and commercializing innovative therapeutics for hematologic malignancies and solid tumors. The company is headquartered in Menlo Park, California.
Key Product: RYTELO
RYTELO (imetelstat) is Geron's lead product, approved by the FDA on June 6, 2024, for treating adult patients with low- to intermediate-1 risk myelodysplastic syndromes (MDS) with transfusion-dependent anemia. The commercial potential of RYTELO is currently being explored, with product sales commencing in June 2024.
Financial Performance
As of September 30, 2024, Geron reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Cash, Cash Equivalents, Restricted Cash, and Marketable Securities | $378,900 |
| Pro Forma Cash, Cash Equivalents, Restricted Cash, and Marketable Securities | $542,400 |
| Accumulated Deficit | $1,746,989 |
| Net Loss (Q3 2024) | $(26,447) |
| Net Loss (Nine Months 2024) | $(149,220) |
| Total Revenues (Q3 2024) | $28,271 |
| Total Revenues (Nine Months 2024) | $29,457 |
Revenue Sources
Geron's revenue sources primarily include:
- Product Revenue: From U.S. sales of RYTELO, totaling $28,209,000 for Q3 2024.
- Royalties: Generated from divested human embryonic stem cell assets, totaling $62,000 for Q3 2024.
Operating Expenses
The operating expenses for Geron as of September 30, 2024, are detailed below:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Goods Sold | $456 | $0 |
| Research and Development | $20,153 | $29,426 |
| Selling, General and Administrative | $35,877 | $18,350 |
| Total Operating Expenses | $56,486 | $47,776 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Geron's cash flow from operations, investing, and financing activities were as follows:
| Activity | Cash Flow (in thousands) |
|---|---|
| Cash Used in Operating Activities | $(174,673) |
| Cash Used in Investing Activities | $(2,493) |
| Cash Provided by Financing Activities | $168,209 |
Debt Obligations
As of September 30, 2024, Geron had the following debt obligations:
- Hercules Loan Agreement: $80.0 million in principal debt outstanding.
- Pharmakon Loan Agreement: Entered on November 1, 2024, with a Tranche A Loan of $125.0 million.
Stockholder Equity
The stockholder equity details as of September 30, 2024, are presented in the following table:
| Equity Component | Value (in thousands) |
|---|---|
| Common Stock | $603 |
| Additional Paid-In Capital | $2,037,653 |
| Accumulated Deficit | $(1,746,989) |
| Accumulated Other Comprehensive Loss | $1,017 |
| Total Stockholders' Equity | $292,284 |
Future Outlook
Geron expects to incur increased research and development expenses and selling, general and administrative expenses as it supports the commercialization of RYTELO and continues its clinical trials. The company is also exploring additional regulatory approvals for RYTELO in international markets.
How Geron Corporation (GERN) Makes Money
Revenue Streams
Geron Corporation primarily generates revenue through the following avenues:
- Product Revenues: The sole product revenue source is from the U.S. sales of RYTELO, which received FDA approval on June 6, 2024. As of September 30, 2024, net product revenues were approximately $28.2 million for the three months ended and $29.0 million for the nine months ended.
- Royalties: Geron receives royalty revenues from the divestiture of its human embryonic stem cell assets to Lineage Cell Therapeutics. Royalties recognized for the three and nine months ended September 30, 2024, were $62,000 and $468,000, respectively.
Product Revenue Details
RYTELO is marketed to treat low- to intermediate-1 risk myelodysplastic syndromes with transfusion-dependent anemia. The company began shipping RYTELO in June 2024. The gross product revenue for the three months ended September 30, 2024, was $32.7 million, with gross-to-net adjustments totaling approximately $4.4 million, leading to net product revenue of $28.2 million.
| Revenue Category | Three Months Ended September 30, 2024 | Nine Months Ended September 30, 2024 |
|---|---|---|
| Gross Product Revenue | $32,657,000 | $33,547,000 |
| Gross-to-Net Adjustments | ($4,448,000) | ($4,558,000) |
| Net Product Revenue | $28,209,000 | $28,989,000 |
| Royalties | $62,000 | $468,000 |
| Total Revenues | $28,271,000 | $29,457,000 |
Cost of Goods Sold (COGS)
For the three and nine months ended September 30, 2024, the COGS related to RYTELO were approximately $456,000 and $473,000, respectively. This includes third-party manufacturing costs, raw materials, and distribution expenses.
Operating Expenses
Geron Corporation's operating expenses consist of research and development (R&D) and selling, general, and administrative (SG&A) expenses. The total operating expenses for the three months ended September 30, 2024, were approximately $56.5 million, a significant increase from $47.8 million in the same period in 2023.
| Expense Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Cost of Goods Sold | $456,000 | $0 |
| Research and Development | $20,153,000 | $29,426,000 |
| Selling, General and Administrative | $35,877,000 | $18,350,000 |
| Total Operating Expenses | $56,486,000 | $47,776,000 |
Financial Overview
As of September 30, 2024, Geron had approximately $378.9 million in cash, cash equivalents, and marketable securities. Pro forma calculations, including proceeds from agreements, indicate a total of approximately $542.4 million available for operations. The accumulated deficit stood at approximately $1.7 billion.
Future Revenue Expectations
Geron anticipates that product revenues from RYTELO will increase through the remainder of 2024 as they expand their market presence. However, royalty revenues are expected to decline compared to 2023 due to reduced sales from previously divested assets.
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Resources:
- Geron Corporation (GERN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Geron Corporation (GERN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Geron Corporation (GERN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.