FOSTER CITY, Calif. - Geron (NASDAQ:GERN) Corporation (NASDAQ:GERN), a biopharmaceutical company focused on blood cancer treatments, announced today the departure of Anil Kapur, its Executive Vice President, Corporate Strategy and Chief Commercial Officer.
Kapur will leave the company to pursue other interests effective August 31, 2024. The company has initiated a search for Kapur's replacement. Until a new Chief Commercial Officer is appointed, Andrew Grethlein, Ph.D., Executive Vice President and Chief Operating Officer, will oversee the commercial operations with support from board member Dawn Carter Bir.
The company expressed confidence in maintaining the momentum of its commercial activities, highlighting the initial positive reception of its telomerase inhibitor, RYTELO™ (imetelstat), which is approved for treating adult patients with lower-risk myelodysplastic syndromes (MDS) with transfusion-dependent anemia. John A. Scarlett, M.D., Chairman and CEO of Geron, acknowledged Kapur's strategic vision and leadership, crediting him with positioning Geron for long-term success.
Geron is actively engaged in a Phase 3 clinical trial of imetelstat for myelofibrosis patients who have relapsed or are refractory to JAK-inhibitor treatment, as well as in studies targeting other hematologic malignancies. Imetelstat's mechanism, which inhibits telomerase activity commonly upregulated in malignant cells, aims to reduce proliferation and induce cell death in cancerous cells.
The company's forward-looking statements, as stipulated under the Private Securities Litigation Reform Act of 1995, indicate ongoing efforts to commercialize RYTELO and the structured approach of their commercial organization for future success.
Still, these statements are subject to various risks and uncertainties that could affect the actual outcomes, including the commercialization and regulatory success of imetelstat, manufacturing and supply capacities, and the need for additional capital.
This report is based on a press release statement from Geron Corporation.
In other recent news, Geron Corporation has seen significant developments with its drug Rytelo, receiving approval from the U.S. Food and Drug Administration (FDA) for the treatment of lower-risk myelodysplastic syndrome (LR-MDS).
This approval has led to increased price targets from Goldman Sachs (NYSE:GS), Stifel, and TD Cowen. Goldman Sachs has raised its price target for Geron to $6.00, while Stifel increased its target to $7.00, and TD Cowen maintained its target at $10.00.
The FDA's approval of Rytelo did not include a black box warning, indicating a favorable risk-benefit profile for the drug. Geron has disclosed Rytelo's pricing, set at $9,884 for a 188mg dosage and $2,472 for a 47mg dosage. Goldman Sachs estimates that these prices align with their monthly estimates of $25,000 when adjusted for patient weight and expected dosing patterns.
In addition to Rytelo, Geron is preparing for the U.S. launch of another drug, Imetelstat, as revealed in its Q1 2024 earnings call. The company holds $465 million in resources and plans for sustained operations through projected sales until Q2 2026. These recent developments highlight the ongoing progress and potential of Geron in the pharmaceutical sector.
InvestingPro Insights
As Geron Corporation (NASDAQ:GERN) navigates the transition period following the departure of Anil Kapur, its financial health and market performance remain critical for investors. According to InvestingPro data, Geron holds a market capitalization of approximately $2.75 billion, reflecting the market's valuation of the company. Despite the challenges faced in the commercialization of RYTELO™, Geron has demonstrated significant price performance with a 52.44% return over the last year and an impressive 119.72% return over the last six months.
Investors monitoring the company's growth trajectory will note the substantial quarterly revenue growth of 1347.62% in Q1 2024, signaling potential market confidence in the company's commercialization efforts and product pipeline. However, the company's gross profit margin presents a stark contrast, showing a negative 24,110.38% for the same period, which may raise concerns about the cost efficiency and profitability of Geron's operations.
Among the InvestingPro Tips for Geron, two highlights stand out. Firstly, analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Secondly, despite the lack of profitability over the last twelve months, Geron's strong cash position, with more cash than debt on its balance sheet, provides it with a solid foundation to support its ongoing clinical trials and commercial activities.
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