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Geron Corporation Reports Second Quarter 2017 Financial Results

MENLO PARK, Calif., Aug. 09, 2017 (GLOBE NEWSWIRE) -- Geron Corporation (Nasdaq:GERN) today reported financial results for the three and six months ended June 30, 2017.

For the second quarter of 2017, the company reported a net loss of $6.4 million, or $0.04 per share, compared to $8.6 million, or $0.05 per share, for the comparable 2016 period. Net loss for the first six months of 2017 was $13.6 million, or $0.09 per share, compared to $17.5 million, or $0.11 per share, for the comparable 2016 period. The company ended the second quarter of 2017 with $117.2 million in cash and investments.

Revenues for the three and six months ended June 30, 2017 were $174,000 and $711,000, respectively, compared to $211,000 and $960,000 for the comparable 2016 periods. Revenues for the three and six month periods ending June 30, 2017 and 2016 included royalty and license fee revenues under various non-imetelstat license agreements.

Total operating expenses for the three and six months ended June 30, 2017 were $6.9 million and $14.9 million, respectively, compared to $9.1 million and $18.9 million for the comparable 2016 periods. Research and development expenses for the three and six months ended June 30, 2017 were $2.5 million and $5.9 million, respectively, compared to $4.6 million and $9.6 million for the comparable 2016 periods. The decrease in research and development expenses for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects lower costs for the proportionate share of clinical development expenses under the collaboration with Janssen Biotech, Inc. and reduced personnel related expenses. General and administrative expenses for the three and six months ended June 30, 2017 were $4.4 million and $9.1 million, respectively, compared to $4.5 million and $9.3 million for the comparable 2016 periods. The decrease in general and administrative expenses for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects lower consulting costs.

Interest and other income for the three and six months ended June 30, 2017 was $346,000 and $678,000, respectively, compared to $293,000 and $549,000 for the comparable 2016 periods. The increase in interest and other income for the three and six month periods ending June 30, 2017, compared to the same periods in 2016, primarily reflects higher yields on the company’s marketable securities portfolio.

Due to the recent announcement and conference call on updates to the clinical development plans for imetelstat, Geron’s management will not be hosting a separate conference call in connection with these financial results.

About Geron

Geron is a clinical stage biopharmaceutical company focused on the collaborative development of a first-in-class telomerase inhibitor, imetelstat, in hematologic myeloid malignancies. For more information about Geron, visit www.geron.com.

Financial table follows.

GERON CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months EndedSix Months Ended
June 30,June 30,
(In thousands, except share and per share data) 2017 2016 2017 2016
Revenues:
License fees and royalties $174 $211 $711 $960
Operating expenses:
Research and development 2,499 4,575 5,873 9,608
General and administrative 4,406 4,547 9,063 9,340
Total operating expenses 6,905 9,122 14,936 18,948
Loss from operations (6,731) (8,911) (14,225) (17,988)
Interest and other income 346 293 678 549
Interest and other expense (20) (19) (41) (40)
Net loss $ (6,405) $ (8,637) $ (13,588) $ (17,479)
Basic and diluted net loss per share:
Net loss per share $ (0.04) $ (0.05) $ (0.09) $ (0.11)
Shares used in computing net loss per share 159,182,367 158,998,931 159,171,959 158,947,485


CONDENSED BALANCE SHEETS
June 30,December 31,
(In thousands) 20172016
(Unaudited)(Note 1)
Current assets:
Cash, cash equivalents and restricted cash $6,874$13,078
Current marketable securities 88,239 102,035
Other current assets 6,953 999
Total current assets 102,066 116,112
Noncurrent marketable securities 22,076 13,954
Property and equipment, net 140 183
$ 124,282$130,249
Current liabilities $11,274$7,869
Stockholders’ equity 113,008 122,380
$124,282$130,249

Note 1: Derived from audited financial statements included in the company’s annual report on Form 10-K for the year ended December 31, 2016.

CONTACT: Anna Krassowska, Ph.D. Investor and Media Relations 650-473-7765 investor@geron.com media@geron.com

Source:Geron Corporation