Form 8-K GERON CORP For: May 05
UNITED
STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________
FORM 8-K
CURRENT
REPORT
PURSUANT TO SECTION
13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 5, 2016
GERON
CORPORATION
(Exact name of
registrant as specified in its charter)
Delaware | 0-20859 | 75-2287752 |
(State or other jurisdiction | (Commission File Number) | (IRS Employer |
of incorporation) | Identification No.) |
149 COMMONWEALTH DRIVE,
SUITE 2070
MENLO PARK, CALIFORNIA 94025
(Address of principal executive offices, including
zip code)
(650)
473-7700
(Registrants
telephone number, including area code)
N/A
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
Geron Corporation (the Company) is furnishing this information under Item 2.02 of Form 8-K.
The information in this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section. The information in this Current Report, including Exhibit 99.1, shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended, or the Exchange Act.
On May 5, 2016, the Company issued a press release announcing its financial results for the three months ended March 31, 2016. A copy of the press release is attached as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. | Description | ||
99.1 | Press release dated May 5, 2016. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GERON CORPORATION | |||
Date: May 5, 2016 | By: |
/s/ Stephen N. Rosenfield |
|
Name: |
Stephen N. Rosenfield | ||
Title: |
Executive Vice President, General Counsel and | ||
Corporate Secretary |
EXHIBIT INDEX
Exhibit No. | Description | ||
99.1 | Press release dated May 5, 2016. |
EXHIBIT 99.1
PRESS RELEASE DATED MAY 5, 2016
Geron Corporation Reports First Quarter 2016 Financial Results and Recent Events
Conference Call Scheduled for 4:30 p.m. EDT Today, May 5
MENLO PARK, Calif., May 5, 2016 -- Geron Corporation (Nasdaq: GERN) today reported financial results for the first quarter ended March 31, 2016 and recent events.
First Quarter 2016 Results
For the first quarter of 2016, the company reported operating revenues of $749,000 and operating expenses of $9.8 million compared to $537,000 and $10.0 million, respectively, for the comparable 2015 period. Revenues for the first quarter of 2016 and 2015 included royalty and license fee revenues under various non-imetelstat agreements. Operating expenses in the first quarter of 2015 included restructuring charges of $406,000 in connection with the companys organizational resizing announced in March 2015. Net loss for the first quarter of 2016 was $8.8 million, or $0.06 per share, compared to $9.3 million, or $0.06 per share, for the comparable 2015 period. The company ended the first quarter of 2016 with $141.9 million in cash and investments.
Research and development expenses for the first quarter of 2016 and 2015 were $5.0 million for each period. Research and development expenses for 2016 primarily reflect the net result of higher costs for the companys proportionate share of clinical development expenses under the imetelstat collaboration with Janssen Biotech, Inc. (Janssen), partially offset by lower personnel related expenses as a result of the 2015 organizational resizing. The company expects research and development expenses to increase during the remainder of the year as the clinical development of imetelstat continues in collaboration with Janssen.
General and administrative expenses for the first quarter of 2016 were $4.8 million compared to $4.6 million for the comparable 2015 period. The increase in general and administrative expenses primarily reflects the net result of higher non-cash stock-based compensation expense, partially offset by lower personnel related costs due to the 2015 organizational resizing.
Interest and other income for the first quarter of 2016 was $256,000 compared to $149,000 for the comparable 2015 period. The increase in interest and other income in 2016 compared to 2015 primarily reflects higher yields on the companys marketable securities portfolio.
Recent Company Events
Clinical Development by Janssen
● |
In January 2016, the first patient was dosed in a Phase 2/3 clinical trial to evaluate imetelstat in patients with myelodysplastic syndromes (MDS). The trial, referred to as IMergeTM, will evaluate imetelstat in transfusion dependent patients with International Prognostic Scoring System (IPSS) Low or Intermediate-1 risk MDS who have relapsed after or are refractory to prior treatment with an erythropoiesis stimulating agent (ESA). This is the second clinical study to be initiated under the terms of the exclusive worldwide imetelstat license and collaboration agreement between Geron and Janssen. Further information about the trial can be found at https://clinicaltrials.gov/ct2/show/NCT02598661. |
1
Presentations and Publications
● |
Clinical data on imetelstat safety and efficacy from patients with a form of MDS known as refractory anemia with ring sideroblasts (MDS-RARS) enrolled as part of the Mayo Clinic Pilot Study were published online in the Blood Cancer Journal in March. The full text paper is available online at http://www.nature.com/bcj/. The data, previously
presented at the American Society of Hematology annual meeting in December
2015, included nine patients enrolled in the study cohort, classified as
having either IPSS intermediate-1 or intermediate-2 risk disease. Six of
nine (66.7%) patients had prior treatment with ESAs. Three of the eight
(37.5%) patients who were dependent on red blood cell transfusions at
study entry became transfusion independent, defined as not requiring
transfusions for at least eight weeks. The median duration of transfusion
independence was 28 weeks (range: nine weeks to 37
weeks). | |
● |
Two poster presentations by Janssen and academic collaborators describing non-clinical data on imetelstat were made at the 2016 annual meeting of the American Association for Cancer Research in April: | |
○ |
Impact of hypomethylating agents on hTERT expression and synergistic effect in combination with imetelstat, a telomerase inhibitor, in AML cell lines (Abstract #2731) Data presented described
non-clinical results that treating acute myeloid leukemia (AML) cell lines
with imetelstat enhanced the effects of agents currently used for the
treatment of AML. These data extend the rationale from prior non-clinical
studies for the potential use of imetelstat in hematologic myeloid
malignancies, such as AML, including in combination with standard
therapies. | |
○ |
Myelosuppression in patients treated with the telomerase inhibitor imetelstat is not mediated through activation of toll-like receptors (Abstract #2732) Data presented described results from non-clinical studies that provide further evidence for potential on-target mechanisms of telomerase inhibition by imetelstat underlying the reduction in platelets observed in previously conducted imetelstat clinical trials. |
The posters are available on the Presentations & Publications page of Gerons website at www.geron.com/presentations.
Conference Call
At 4:30 p.m. EDT on May 5, 2016, Gerons management will host a conference call to discuss the companys first quarter results as well as recent events.
Participants can access the conference call live via telephone by dialing 877-303-9139 (U.S.); 760-536-5195 (international). The passcode is 97998290. A live audio-only webcast is also available at http://edge.media-server.com/m/p/8839g3n8/lan/en. The audio webcast of the conference call will be available for replay approximately one hour following the live broadcast through June 5, 2016.
About Geron
Geron is a biopharmaceutical company supporting the clinical stage development of a first-in-class telomerase inhibitor, imetelstat, in hematologic myeloid malignancies. For more information about Geron, visit www.geron.com.
2
Use of Forward-Looking Statements
Except for the historical information contained herein, this press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that statements in this press release regarding: (i) the conduct and continuation of IMbarkTM and IMergeTM and other potential activities under the collaboration agreement with Janssen; (ii) the safety and efficacy of imetelstat; (iii) the current timelines, milestones and designs of IMbarkTM and IMergeTM, including planned reviews and analyses of clinical data; (iv) that the data from Abstract #2731 extend the rationale from prior non-clinical studies for the potential use of imetelstat in hematologic myeloid malignancies, such as AML, including in combination with standard therapies; (v) that the data from Abstract #2732 provide further evidence for potential on-target mechanisms of telomerase inhibition by imetelstat underlying the reduction in platelets observed in previously conducted imetelstat clinical trials; (vi) financial projections and expectations; and (vii) other statements that are not historical facts, constitute forward-looking statements. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. These risks and uncertainties, include, without limitation, risks and uncertainties related to: (i) the uncertain, time-consuming and expensive product development and regulatory process, including whether Geron and Janssen will succeed in overcoming all of the clinical safety and efficacy, technical, scientific, manufacturing and regulatory challenges in the development and commercialization of imetelstat; (ii) regulatory authorities permitting the current clinical trials to continue to proceed and potential clinical trials to begin or continue to proceed; (iii) Janssens ability to enroll patients in a timely manner, or at all, in any of the current or potential clinical trials of imetelstat; (iv) the ability of Geron and Janssen to protect and maintain intellectual property rights for imetelstat; (v) Gerons dependence on Janssen for the development, regulatory approval, manufacture and commercialization of imetelstat, including the risks that if Janssen were to breach or terminate the collaboration agreement or otherwise fail to successfully develop and commercialize imetelstat and in a timely manner, or at all, Geron would not obtain the anticipated financial and other benefits of the collaboration agreement with Janssen and the clinical development or commercialization of imetelstat could be delayed or terminated; (vi) whether imetelstat is safe and efficacious, and whether any future efficacy or safety results may cause the benefit/risk profile of imetelstat to become unacceptable; (vii) whether imetelstat can be applied to any or to multiple hematologic malignancies; and (viii) Gerons need for future capital. Additional information on the above risks and uncertainties and additional risks, uncertainties and factors that could cause actual results to differ materially from those in the forward-looking statements are contained in Gerons periodic reports filed with the Securities and Exchange Commission under the heading Risk Factors, including Gerons quarterly report on Form 10-Q for the quarter ended March 31, 2016. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made, and the facts and assumptions underlying the forward-looking statements may change. Except as required by law, Geron disclaims any obligation to update these forward-looking statements to reflect future information, events or circumstances.
CONTACT:
Anna Krassowska,
Ph.D.
Investor and Media Relations
650-473-7765
[email protected]
[email protected]
Financial table follows.
3
GERON
CORPORATION
CONDENSED
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31, | |||||||
(In thousands, except share and per share data) | 2016 | 2015 | |||||
Revenues: | |||||||
License fees and royalties | $ | 749 | $ | 537 | |||
Operating expenses: | |||||||
Research and development | 5,033 | 4,987 | |||||
Restructuring charges | | 406 | |||||
General and administrative | 4,793 | 4,600 | |||||
Total operating expenses | 9,826 | 9,993 | |||||
Loss from operations | (9,077 | ) | (9,456 | ) | |||
Unrealized gain on derivatives | | 16 | |||||
Interest and other income | 256 | 149 | |||||
Interest and other expense | (21 | ) | (24 | ) | |||
Net loss | $ | (8,842 | ) | $ | (9,315 | ) | |
Basic and diluted net loss per share: | |||||||
Net loss per share | $ | (0.06 | ) | $ | (0.06 | ) | |
Shares used in computing net loss per share | 158,896,038 | 157,547,568 |
CONDENSED BALANCE SHEETS | ||||||
March 31, | December 31, | |||||
(In thousands) | 2016 | 2015 | ||||
(Unaudited) | (Note 1) | |||||
Current assets: | ||||||
Cash, cash equivalents and restricted cash | $ | 13,069 | $ | 21,515 | ||
Current marketable securities | 96,846 | 92,524 | ||||
Other current assets | 1,040 | 1,853 | ||||
Total current assets | 110,955 | 115,892 | ||||
Noncurrent marketable securities | 31,976 | 32,661 | ||||
Property and equipment, net | 212 | 207 | ||||
$ | 143,143 | $ | 148,760 | |||
Current liabilities | $ | 6,658 | $ | 6,634 | ||
Stockholders equity | 136,485 | 142,126 | ||||
$ | 143,143 | $ | 148,760 |
Note 1: | Derived from audited financial statements included in the companys annual report on Form 10-K for the year ended December 31, 2015. |
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