Geron Corporation Reports 2009 Second Quarter Financial Results and Events
MENLO PARK, Calif., July 30, 2009 -- Geron Corporation (Nasdaq: GERN) today reported financial results for the three and six months ended June 30, 2009.
For the second quarter of 2009, the company reported a net loss applicable to common stockholders of $19.9 million, or $(0.23) per share, compared to $13.6 million, or $(0.17) per share, for the comparable 2008 period. Net loss applicable to common stockholders for the first six months of 2009 was $36.8 million, or $(0.43) per share, compared to $27.2 million or $(0.35) per share, for the comparable 2008 period.
Revenues for the second quarter of 2009 were $183,000, compared to $198,000 for the comparable 2008 period. Revenues for the first six months of 2009 were $627,000, compared to $1.9 million for the comparable 2008 period. Revenues for the second quarter and year to date periods of 2009 and 2008 reflect royalty and license fee revenue under various license agreements. Revenues for the first six months of 2008 also included receipt of a $1.5 million milestone payment.
Interest and other income for the second quarter of 2009 amounted to $363,000, compared to $1.4 million for the comparable 2008 period. Interest and other income for the first six months of 2009 was $888,000, compared to $3.3 million for the comparable 2008 period which reflects the decreasing interest rate environment. To date, the company has not incurred any impairment charges on its marketable debt securities portfolio.
Total operating expenses for the second quarter of 2009 were $18.9 million, compared to $15.7 million for the comparable 2008 period. Research and development expenses for the second quarter of 2009 were $15.1 million, compared to $11.6 million for the comparable 2008 period. Research and development expenses increased primarily as a result of hiring additional personnel, higher clinical trial costs related to patient enrollment for GRN163L and GRNVAC1 trials, increased manufacturing costs associated with GRN163L and GRNVAC1 and start-up costs for the GRNOPC1 trial. General and administrative expenses for the second quarter of 2009 were $3.8 million, compared to $4.0 million for the comparable 2008 period.
Total operating expenses for the first six months of 2009 were $36.1 million, compared to $33.3 million for the comparable 2008 period. Research and development expenses for the first six months of 2009 were $28.9 million, compared to $25.2 million for the comparable 2008 period. Overall research and development expenses increased in 2009 as a result of hiring additional personnel, increased clinical trial costs and increased manufacturing costs associated with GRN163L and GRNVAC1. General and administrative expenses for the first six months of 2009 were $7.2 million, compared to $8.1 million for the comparable 2008 period.
The company expects its research and development expenses to increase in the future as it advances its product candidates, GRN163L, GRNVAC1 and GRNOPC1, through clinical trials.
Second Quarter 2009 Highlights:
· Five presentations were given on Geron's telomerase inhibitor, imetelstat sodium (GRN163L), at the American Association for Cancer Research (AACR) annual meeting. The presentations focused on the activity of imetelstat sodium, against cancer stem cells from non-small cell lung, breast, pancreatic, prostate, and pediatric neural tumors.
· Stephen M. Kelsey, M.D., F.R.C.P., F.R.C.Path., was appointed executive vice president and chief medical officer, oncology. Hassan Movahhed was appointed vice president of clinical operations.
· GE Healthcare, a unit of General Electric Company, and Geron entered into a global exclusive license and alliance agreement to develop and commercialize cellular assay products derived from human embryonic stem cells (hESCs) for use in drug discovery and development.
Conference Call
At 8:00 a.m. PDT / 11:00 a.m. EDT on Friday, July 31, Thomas B. Okarma, Ph.D., M.D., Geron's chief executive officer, and David L. Greenwood, Geron's chief financial officer, will host a conference call to discuss the company's second quarter and year-to-date results.
Participants can access the conference call via telephone by dialing 866-788-0544 (U.S.) or 857-350-1682 (international). The passcode is 92419512. A live audio-only Webcast is also available through a link that is posted on the events page in the Investors section of Geron's Website at http://www.geron.com. The audio Web broadcast of the conference call will be available for replay through Aug. 28, 2009.
Geron is developing first-in-class biopharmaceuticals for the treatment of cancer and chronic degenerative diseases, including spinal cord injury, heart failure and diabetes. The company is advancing an anti-cancer drug and a cancer vaccine that target the enzyme telomerase through multiple clinical trials in different cancers and has received clearance to initiate the first clinical trial of a human embryonic stem cell (hESC)-based therapy. For more information, visit www.geron.com.
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements in this press release regarding potential applications of Geron's technologies constitute forward-looking statements that involve risks and uncertainties, including, without limitation, risks inherent in the development and commercialization of potential products, uncertainty of clinical trial results or regulatory approvals or clearances, need for future capital, dependence upon collaborators and maintenance of our intellectual property rights. Actual results may differ materially from the results anticipated in these forward-looking statements. Additional information on potential factors that could affect our results and other risks and uncertainties are detailed from time to time in Geron's periodic reports, including the quarterly report on Form 10-Q for the quarter ended March 31, 2009.
CONTACTS:
Anna Krassowska
Investor and Media Relations
650-473-7765 info@geron.com
Financial table follows.
GERON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, June 30,
------------------------- -------------------------
(In thousands,
except share and
per share data) 2009 2008 2009 2008
------------ ------------ ------------ ------------
Revenues from
collaborative
agreements $ -- $ 87 $ -- $ 166
License fees and
royalties 183 111 627 1,726
------------ ------------ ------------ ------------
Total revenues 183 189 627 1,892
Operating
expenses:
Research and
development 15,112 11,614 28,883 25,227
General and
administrative 3,828 4,042 7,206 8,072
------------ ------------ ------------ ------------
Total operating
expenses 18,940 15,656 36,089 33,299
------------ ------------ ------------ ------------
Loss from
operations (18,757) (15,458) (35,462) (31,407)
Unrealized gain (loss)
on derivatives, net (1,330) 495 (1,253) 901
Interest and other
income 363 1,423 888 3,316
Losses recognized
under equity method
investment -- -- (656) --
Interest and other
expense (34) (24) (86) (48)
------------ ------------ ------------ ------------
Net loss (19,758) (13,564) (36,569) (27,238)
Deemed dividend on
derivatives (190) -- (190) --
------------ ------------ ------------ ------------
Net loss
applicable to
common
stockholders $ (19,948) $ (13,564) $ (36,759) $ (27,238)
============ ============ ============ ============
Basic and diluted
net loss per
share applicable
to common
stockholders $ (0.23) $ (0.17) $ (0.43) $ (0.35)
============ ============ ============ ============
Shares used in
computing basic
and diluted net
loss per share
applicable to
common
stockholders 88,547,553 78,142,176 86,354,221 77,385,935
============ ============ ============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(In thousands) 2009 2008
---------------- ---------------
(Unaudited) (Note 1)
Current assets:
Cash, restricted cash and cash
equivalents $ 102,162 $ 110,164
Marketable securities 86,475 53,491
Other current assets 4,588 4,591
---------------- ---------------
Total current assets 193,225 168,246
Property and equipment, net 4,745 4,386
Deposits and other assets 2,005 3,586
---------------- ---------------
$ 199,975 $ 176,218
================ ===============
Current liabilities $ 10,414 $ 7,711
Noncurrent liabilities -- 52
Stockholders' equity 189,561 168,455
---------------- ---------------
$ 199,975 $ 176,218
================ ===============
Note 1: Derived from audited financial statements included in the company's Annual Report on Form 10-K for the year ended December 31, 2008.
