Geron Corporation (NASDAQ: GERN) is experiencing a robust launch of its innovative telomerase inhibitor, Rytelo (imetelstat), indicated for treating specific blood malignancies. This positive momentum has led H.C. Wainwright to initiate coverage on Geron with a 'Buy' rating and an $8.00 price target.
Rytelo gained FDA approval on June 6, 2024, for adult patients with transfusion-dependent anemia due to low-to-intermediate risk myelodysplastic syndromes (MDS) who have not responded to prior treatments. This approval was based on the Phase 3 IMerge study results, which demonstrated a statistically significant improvement in transfusion independence compared to placebo.
Clinical Trial Data
The IMerge study revealed that 40% of patients treated with imetelstat achieved 8-week transfusion independence, compared to only 15% in the placebo group. These results underscore the clinical benefit of Rytelo for patients with MDS who require regular transfusions.
Early Market Performance
The initial market response to Rytelo has been encouraging, with 160 patients commencing treatment within the first month of its availability. A survey of 20 physicians indicated overwhelmingly positive feedback, with many planning to prescribe Rytelo to a significant portion of their MDS patients. Physicians also reported improvements in transfusion dependence and considered the drug's safety profile manageable.
Financial Projections and Analyst Ratings
As Geron Corporation approaches its third-quarter earnings announcement for 2024, analysts anticipate the first full quarter of revenue generated by Rytelo. H.C. Wainwright estimates these revenues to be approximately $19 million. Other analyst firms, including B.Riley, Goldman Sachs, and Leerink Partners, have also maintained positive ratings on Geron, recognizing Rytelo's potential for substantial global sales. B.Riley's third-quarter sales estimate for Rytelo stands at $22.5 million, slightly above the sell-side consensus of $18.9 million.
Strategic Corporate Developments
Geron has recently appointed Jim Ziegler as Executive Vice President and Chief Commercial Officer, a strategic move expected to bolster the company's commercial strategy for Rytelo. Additionally, Geron is actively engaged in a Phase 3 clinical trial evaluating imetelstat in relapsed/refractory myelofibrosis, further solidifying its commitment to advancing blood cancer treatments.
The company's financial position remains strong, with $430 million in cash and equivalents. Projected operating expenses for 2024 are estimated to be between $270 million and $280 million.
