Scotiabank downgrades Geron to Sector Perform on Rytelo launch challenges

As previously reported, Scotiabank analyst Greg Harrison downgraded Geron (GERN) to Sector Perform from Outperform with a price target of $1.50, down from $4. As the company manages a slowdown in its launch of Rytelo in MDS, the firm emphasized that its rating change “is not solely due to the miss on the quarter,” which had an inventory drawdown, but it sees the weak result as further evidence of the challenges that lie ahead and is concerned about the flattening of the launch less than a year in, necessitating a revised commercial strategy.