Geron Discontinues Further Development Of Embryonic Stem Cell Programs

For years some observers have believed Geron's future was centered in the development of its oncology research. In these uncertain economic times it seems the company has come to the same conclusion.

Geron today announced that effective immediately the Company will focus on its first-in-class oncology programs and will discontinue further development of its stem cell programs.

The company will be seeking partners with both the financial and technical expertise to continue the stem cell programs.

"In the current environment of capital scarcity and uncertain economic conditions, we intend to focus our resources on advancing our Phase 2 clinical trials of imetelstat and GRN1005. These two novel and promising oncology drug candidates target major unmet medical needs and have important clinical development milestones occurring over the next 20 months," said Geron's Chief Executive Officer, John A. Scarlett, M.D.

"By narrowing our focus to the oncology therapeutic area, we anticipate having sufficient financial resources to reach these important near-term value inflection points for shareholders without the necessity of raising additional capital. This would not be possible if we continue to fund the stem cell programs at the current levels."

With this decision, Geron is eliminating 66 full-time positions, representing 38% of its workforce. As a result, the Company expects one-time cash expenditures of approximately $5 million in the fourth quarter of 2011 and approximately $3 million in the first half of 2012. Geron expects to end 2011 with cash and investments in excess of $150 million.

Adapted from the Geron announcement.