) posted a net loss of 10 cents per share in the fourth quarter
of 2012, narrower than the Zacks Consensus Estimate of a loss of
14 cents and the year-ago loss of 20 cents. Fourth quarter
revenues of $689,000 were well above the year-ago revenues of
$251,000 but below the Zacks Consensus Estimate of $1 million. A
significant decline in expenses led to the narrower loss.
Full-year loss came in at 52 cents per share, well below the
year-ago loss of 72 cents per share and the Zacks Consensus
Estimate of a loss of 60 cents. Full year revenues increased
11.1% to $2.7 million.
Quarter in Detail
Revenues consisted entirely of royalties and license fees.
Geron has several license agreements with various oncology,
diagnostics, research tools, agriculture and biologics production
companies. Geron did not recognize any revenues from
collaborative agreements in the reported quarter.
Total operating expenses declined 34.7% to $16.5 million.
Research and development expenses declined 40% to $11.8 million
due to reduced personnel-related costs and lower scientific
supply expenses resulting from the discontinuation of the stem
cell programs as well as lower costs related to the manufacturing
of imetelstat. Meanwhile, general and administrative expenses
declined 15.7% to $4.7 million, mainly due to lower stock-based
Earlier this year, Geron had announced that it has signed an
Asset Contribution Agreement with
) and its subsidiary, BioTime Acquisition Corporation (BAC). Per
the terms of the agreement, Geron's stem cell assets will be
divested to BAC on the closing of the deal. The deal is scheduled
to close by Sep 30, 2013.
During 2013, Geron expects cash burn of about $33 million,
well below the 2012 burn rate. In Dec 2012, Geron had announced
positive phase II data on pipeline candidate, imetelstat, for
essential thrombocythemia (ET). Rapid and durable hematologic and
molecular responses were observed in patients on imetelstat. The
company is currently working with advisers to see whether
imetelstat has the potential to be developed for ET.
Meanwhile, Geron expects to report full results on imetelstat,
for multiple myeloma this year. However, the company said that
the further development of imetelstat in lymphoid malignancies
remains a low priority area. Moreover, Geron does not have any
plans for the further development of imetelstat for multiple
Geron currently carries a Zacks Rank #3 (Hold). We prefer to
remain on the sidelines until we gain more visibility on the
late-stage development potential of imetelstat. Companies like
) currently look more attractive. Both are Zacks Rank #1 stocks
BIOTIME INC (BTX): Get Free Report
CYTOKINETCS INC (CYTK): Free Stock Analysis
GERON CORP (GERN): Free Stock Analysis Report
OSIRIS THERAPTC (OSIR): Free Stock Analysis
To read this article on Zacks.com click here.