Geron Corporation Reports Significant Revenue Growth, Net Loss in Q3 2024

Geron Corporation reported significant financial developments in its 10-Q filing for the three and nine months ended September 30, 2024. The company achieved total revenues of $28.3 million for the third quarter, a substantial increase from just $164,000 in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $29.5 million, compared to $214,000 in the prior year. This growth is attributed primarily to the commercialization of RYTELO, which received FDA approval in June 2024 and began shipping in the same month.

Despite the revenue increase, Geron reported a net loss of $26.4 million for the third quarter of 2024, an improvement from a net loss of $44.8 million in the same quarter of 2023. For the nine-month period, the net loss was $149.2 million, compared to $132.2 million in the previous year. The company’s operating expenses also rose, totaling $56.5 million for the third quarter, up from $47.8 million in 2023, driven by increased selling, general, and administrative expenses, which nearly doubled to $35.9 million.

As of September 30, 2024, Geron reported cash and cash equivalents of $60.3 million, down from $70.0 million at the end of 2023. However, marketable securities increased to $279.4 million, contributing to total current assets of $398.1 million, up from $341.3 million at the end of 2023. Current liabilities also rose to $137.9 million, compared to $108.1 million previously, with total stockholders' equity increasing to $292.3 million from $247.9 million.

The company’s accumulated deficit worsened to approximately $1.7 billion, reflecting ongoing challenges in achieving profitability. Geron’s financial strategy includes a recent public offering that raised approximately $141.0 million in net cash proceeds, which is expected to support the commercialization of RYTELO and ongoing clinical trials.

In terms of strategic developments, Geron entered into a Pharmakon Loan Agreement on November 1, 2024, providing a senior secured term loan facility of up to $250 million, with the first tranche of $125 million funded immediately. This agreement allowed the company to repay its previous Hercules Loan Agreement, which was terminated. Additionally, Geron has entered into a revenue participation agreement with Royalty Pharma, receiving an upfront payment of $125 million in exchange for tiered revenue interest payments based on RYTELO's sales.

Overall, Geron Corporation is navigating a complex landscape as it seeks to establish RYTELO in the market while managing its financial obligations and operational costs.