Geron Corp’s Rytelo Faces Market Challenges and Declining Physician Adoption, Supporting Sell Rating

Corinne Johnson, an analyst from Goldman Sachs, has initiated a new Sell rating on Geron (GERN).

Corinne Johnson’s rating is based on several factors that indicate challenges for Geron Corp. in the near term. The launch of Geron’s lead product, Rytelo, has underperformed against market expectations, with its first-quarter revenue falling short of consensus estimates and showing a decline compared to the previous quarter. This suggests that demand has stagnated since the drug’s approval, and the anticipated growth trajectory is modest, failing to meet peak sales expectations.
Additionally, a survey conducted by Johnson reveals that physicians expect only 38% of patients to use Rytelo during their treatment, a significant drop from earlier estimates of 60%. The drug is primarily being prescribed in the third-line setting, where the duration of therapy is shorter, further limiting its market potential. Physicians also foresee little change in their prescribing habits over the next year, reinforcing the view that Rytelo’s sales will continue to face headwinds. As a result, Goldman Sachs’ estimates for Geron’s performance in 2025 and 2026 are notably lower than the consensus, supporting the Sell rating.

Based on the recent corporate insider activity of 8 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GERN in relation to earlier this year.