Geron Corporation’s Earnings Call: Mixed Sentiments and Future Prospects

Geron Corporation ((GERN)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call of Geron Corporation presented a mixed sentiment among stakeholders. While there were positive developments such as an increase in prescribing accounts and new patient starts, the company also faced challenges including declining demand and the need for greater awareness and education regarding RYTELO’s use in earlier treatment lines.

Increased Prescribing Accounts

The third quarter saw a 15% increase in prescribing accounts for Geron Corporation, with approximately 150 new ordering accounts added. This expansion brings the total number of accounts to 1,150, indicating a growing footprint and potential for increased revenue streams.

Improvement in New Patient Starts

Geron reported an improvement in new patient starts, with the percentage rising to 36% in the first and second lines, up from 30% in the previous quarter. This suggests a positive trend in the adoption of RYTELO among new patients, which could bolster future sales.

Strong Financial Position

The company remains well-capitalized, boasting $420 million in cash and marketable securities. This strong financial position is expected to support Geron’s projected operating expenses and future strategic initiatives, providing a stable foundation for growth.

Presence at Medical Conferences

Geron has been actively participating in significant hematology forums, including the Society of Hematologic Oncology Conference and the upcoming ASH conference. These engagements are part of the company’s strategy to increase awareness and engagement for RYTELO among healthcare professionals.

Decline in RYTELO Demand

Despite the positive developments, demand for RYTELO decreased by 3% compared to the last quarter. This decline is attributed to discontinuations from patients using RYTELO in later lines, highlighting a challenge in maintaining consistent demand.

Gross to Net Increase

The gross to net ratio increased due to a higher Medicaid mix rate, fees from new GPO contracts, and returns from expired RYTELO supplies. This financial metric adjustment reflects the evolving market dynamics and contractual obligations.

Challenges in Shifting RYTELO to Earlier Lines

Geron faces challenges in positioning RYTELO as a second-line therapy, with uptake in earlier lines of treatment remaining difficult. The company acknowledges the need for more education and brand awareness efforts to shift perceptions and increase utilization.

Lower Operating Expense Guidance

The company has adjusted its operating expense guidance for fiscal year 2025, now expecting expenses to be between $250 million and $260 million, which is below the previously announced guidance. This reflects strategic cutbacks in certain investments to optimize financial performance.

Forward-Looking Guidance

Looking ahead, Geron Corporation provided detailed guidance on its future strategies, focusing on the commercial potential of RYTELO in treating lower-risk myelodysplastic syndromes (MDS). Despite a slight decline in demand, the company remains optimistic about its strong cash position and plans for European market expansion in 2026. Geron anticipates revenue growth primarily in 2026, driven by increased awareness and improved execution.

In summary, Geron Corporation’s earnings call highlighted a mix of positive developments and challenges. While the company is expanding its prescribing accounts and improving new patient starts, it faces hurdles in maintaining demand and shifting RYTELO to earlier treatment lines. With a strong financial position and strategic plans for future growth, Geron remains focused on overcoming these challenges and capitalizing on its opportunities.