Exhibit 99.1
Geron Corporation Reports 2003 Third Quarter Results and Events
MENLO PARK, Calif.--(BUSINESS WIRE)--Nov. 12, 2003--Geron
Corporation (Nasdaq:GERN) today reported financial results for the
three and nine months ended September 30, 2003.
For the third quarter of 2003, the company reported a net loss of
$5.1 million or $(0.15) per share compared to $7.2 million or $(0.29)
per share in the third quarter of 2002. Net loss for the first nine
months of 2003 was $22.3 million or $(0.76) per share compared to
$26.7 million or $(1.08) per share for the same period in 2002.
Revenues for the third quarter of 2003 were $472,000 compared to
$218,000 for the comparable period in 2002. Revenues for the third
quarter of 2003 included funding received under collaborative
agreements with various biotechnology companies, royalty revenues
under license agreements with companies for sales of telomerase-based
diagnostic kits, earned milestone payments and license fee revenues
recognized from sublicense agreements and license option agreements
with multiple companies for nuclear transfer and telomerase
technology. The increase in revenue in 2003 reflected new license
agreements signed for Geron's telomerase technology during the second
and third quarters of 2003 and a milestone payment earned under its
oncolytic virus program.
Operating expenses for the third quarter of 2003 were $5.7 million
compared to $7.7 million for the comparable period in 2002. The
decrease in operating expenses is the result of reduced
personnel-related costs, reflecting the Company's progression from
internal research to focused development of potential products.
In November 2003, the Company received approximately $64.4 million
in net cash proceeds from its public offering of common stock. With
the proceeds of the public offering, the Company estimates that its
existing capital resources, interest income and equipment financing
will be sufficient to fund current and planned operations through
December 31, 2006.
Third Quarter 2003 Highlights:
-- The Summer 2003 issue of Cloning & Stem Cells published
research results that osteoblasts (bone-forming cells) can be
derived in vitro from human embryonic stem cells (hESCs). Such
hESC-derived osteoblasts have potential applications in
orthopedic tissue repair and in the treatment of osteoporosis.
-- At the 94th Annual Meeting of the American Association for
Cancer Research, Geron collaborators presented new preclinical
data from in vivo and in vitro studies on both the safety and
stability of the telomerase inhibitor anti-cancer drug,
GRN163. The results demonstrate excellent safety and
tolerability of daily intravenous (IV bolus) dosing in rats
for 4 weeks and, in a separate study, in dogs for 7 days, as
well as good tolerability of continuous intracranial delivery
for the same time periods in both species. Moreover, a series
of stability studies demonstrated that GRN163 has appropriate
stability in both liquid and powder formulations.
-- Cancer Research published detailed data on cell and animal
testing of GRN163, Geron's telomerase inhibitor anti-cancer
drug. The results include the demonstration that GRN163
suppresses the growth of human prostate cancer when
administered systemically to mice.
-- The U.S. Patent and Trademark Office granted U.S. Patent No.
6,608,036 which includes 19 claims drawn to oligonucleotides
that are targeted to the RNA component of human telomerase and
have thiophosphoramidate linkages. Geron is currently
conducting pre-clinical testing for this class of compounds,
which includes its lead compounds, GRN163 and GRN163L.
-- In a study conducted by collaborators at the University of
Washington, Geron reported the successful transplant of human
cardiomyocytes (heart muscle cells) derived from human
embryonic stem cells (hESCs) into animals. The cardiomyocytes
not only engrafted efficiently, but also matured and expanded
in vivo at the site of the graft.
-- The U.S. Patent and Trademark Office granted U.S. Patent No.
6,610,839, with claims covering the promoter that regulates
expression of the human telomerase reverse transcriptase gene.
This granted patent triggered a milestone payment.
Geron is a biopharmaceutical company focused on developing and
commercializing therapeutic and diagnostic products for cancer based
on its telomerase technology, and cell-based therapeutics using its
human embryonic stem cell technology.
This news release may contain forward-looking statements made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such
forward-looking statements in this press release regarding potential
applications of Geron's technologies and future financial results
constitute forward-looking statements that involve risks and
uncertainties, including, without limitation, risks inherent in the
development and commercialization of potential products, need for
future capital and maintenance of our intellectual property rights.
Actual results may differ materially from the results anticipated in
these forward-looking statements. Additional information on potential
factors that could affect our results and other risks and
uncertainties are detailed from time to time in Geron's periodic
reports, including the quarterly report on Form 10-Q for the quarter
ended September 30, 2003.
Additional information about the company can be obtained at
http://www.geron.com
Financial table follows.
GERON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
(In thousands, 2003 2002 2003 2002
except share and
per share
amounts)
Revenues from
collaborative
agreements $ -- $ 18 $ 72 $ 548
License fees and
royalties 472 200 947 407
------ ------ ------ ------
Total revenues 472 218 1,019 955
Operating
expenses:
Research and
development 4,864 6,346 19,600 24,656
General and
administrative 845 1,314 3,353 4,363
------- ------ ------ ------
Total operating
expenses 5,709 7,660 22,953 29,019
------- ------ ------ ------
Loss from
operations (5,237) (7,442) (21,934) (28,064)
Interest and other
income 287 434 957 1,970
Debenture
conversion
expense -- -- (779) --
Interest and other
expense (157) (188) (571) (585)
------- ------ ------ ------
Net loss $(5,107) $(7,196) $(22,327) $(26,679)
======= ====== ====== ======
Basic and diluted
net loss per
share $ (0.15) $ (0.29) $ (0.76) $ (1.08)
======= ====== ====== ======
Weighted average
shares used in
computing basic
and diluted
net loss per
share 33,189,213 24,737,635 29,192,273 24,634,161
========== ========== ========== ==========
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
(In thousands) 2003 2002
---- ----
(Unaudited) (Note 1)
Current assets:
Cash, restricted cash and cash
equivalents $ 8,572 $ 5,134
Marketable securities 41,058 42,383
Interest and other receivables 681 704
Other current assets 1,453 2,548
------- -------
Total current assets 51,764 50,769
Property and equipment, net 1,809 2,444
Deposits and other assets 881 772
Intangible assets 4,535 6,684
------- -------
$58,989 $60,669
======= =======
Current liabilities $ 7,600 $ 9,383
Noncurrent liabilities 2,788 21,545
Stockholders' equity 48,601 29,741
------- -------
$58,989 $60,669
======= =======
Note 1: Derived from audited financial statements included in
Geron's Annual Report on Form 10-K, filed with the SEC.
CONTACT: Geron Corporation
Olivia Bloom, 650-473-7765