Exhibit 99.1
Geron Corporation Reports 2005 First Quarter Financial Results and Events
MENLO PARK, Calif.--(BUSINESS WIRE)--April 29, 2005--Geron
Corporation (Nasdaq:GERN) today reported financial results for the
three months ended March 31, 2005.
For the first quarter of 2005, the company reported operating
revenue of $59,000 and operating expenses of $10.4 million compared to
$248,000 and $52.3 million, respectively, for the comparable period in
2004. Net loss for the period was $9.7 million or $(0.18) per share
compared to $51.7 million or $(1.28) per share for the comparable
period in 2004.
Operating expenses for the first quarter of 2004 included a
non-cash charge of $45.2 million related to the acquisition of
technology rights from Merix Bioscience, Inc. (now Argos
Therapeutics). Excluding that charge, the company's overall research
and development expenses increased in the first quarter of 2005 as a
result of higher personnel-related costs and increased consulting
costs for clinical and regulatory matters. The increase in the
company's general and administrative expenses for 2005 was primarily
due to a non-cash charge for the fair value of a warrant issued to a
consultant.
The company expects its research and development expenses to
increase in the future as it continues clinical manufacturing and
testing of its telomerase inhibitor compounds, furthers the
development of its human embryonic stem cell programs and expands its
activities in the development of telomerase-based cancer vaccines.
Revenues for the first quarter of 2005 and 2004 represented
royalty revenues under various license agreements with companies for
sales of telomerase-based diagnostic kits, shared profits from sales
of reagent research products, and license fee revenues recognized from
sublicense agreements or license option agreements with various
companies for nuclear transfer and telomerase technology.
First Quarter 2005 Highlights:
-- The Board of Patent Appeals and Interferences of the U.S.
Patent and Trademark Office issued a final judgment ending
patent interference number 104,746 between Geron and Advanced
Cell Technology Corporation (ACT) of Worcester, Mass., having
to do with claims related to nuclear transfer technology. The
Board ended the interference by entering judgment against ACT
on all counts in the priority phase of the interference,
thereby invalidating U.S. Patent No. 5,945,577, which is
licensed to ACT from the University of Massachusetts.
-- Geron Corporation granted a worldwide license to Cambrex
(NYSE:CBM) under which a Cambrex subsidiary will develop and
distribute cell lines that have been immortalized using
Geron's proprietary telomerase technology.
-- Geron received proceeds of $12.5 million upon the exercise of
warrants to purchase approximately 2.0 million shares of
common stock. The warrants were issued to institutional
investors in connection with the financing announced in
November 2004 and had an expiration date of January 11, 2005.
-- The Board of Patent Appeals and Interferences of the U.S.
Patent and Trademark Office issued a final judgment in
interference number 105,192 between Geron and ACT, having to
do with claims related to nuclear transfer technology. In its
ruling, the Board found all claims of U.S. Patent No.
6,235,970, which is licensed to ACT from the University of
Massachusetts, to be unpatentable, effectively invalidating
the patent.
-- Geron and the Biotechnology Research Corporation (BRC) of Hong
Kong formed a new company, TA Therapeutics, Limited (TAT), in
Hong Kong. TAT will conduct research and develop telomerase
activator drugs to restore the functional capacity of cells in
various organ systems that have been impacted by senescence,
injury or chronic disease.
-- The Journal of Immunology published results of a completed
Phase 1-2 clinical trial of Geron's telomerase therapeutic
vaccine administered to patients with metastatic prostate
cancer at Duke University Medical Center. The results showed
that the vaccination protocol successfully generated
telomerase-specific T-cell responses in 19 of 20 subjects. The
vaccine was well tolerated with no major treatment-related
toxicities.
-- Geron's collaborators presented studies showing that small
molecule telomerase activators, GRN139951 and GRN140665,
enhanced the functional activity of immune cells from HIV/AIDS
donors. The research demonstrated that the Geron compounds
increased the proliferative capacity of cytotoxic T-cells and
their ability to produce a virus-fighting molecule, gamma
Interferon.
-- Stem Cells published Geron studies which demonstrated that
human embryonic stem cells (hESCs) can be propagated in
culture using defined growth factors without the need for
feeder cells or media conditioned by feeder cells. The results
represented a major step forward in the development of
scalable systems to culture hESCs for the production of
therapeutic cell products.
Geron is a biopharmaceutical company developing and
commercializing three groups of products: i) therapeutic products for
oncology that target telomerase; ii) pharmaceuticals that activate
telomerase in tissues impacted by senescence, injury or degenerative
disease; and iii) cell-based therapies derived from its human
embryonic stem cell platform for applications in multiple chronic
diseases.
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 future
financial results of Geron Corporation and potential applications of
Geron's technologies constitute forward-looking statements that
involve risks and uncertainties, including, without limitation, risks
inherent in the development and commercialization of potential
products, need for regulatory approvals or clearances, the maintenance
of our intellectual property rights and need for future capital.
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 annual report on Form 10-K for the year ended
December 31, 2004.
GERON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
(In thousands, except share and 2005 2004
per share amounts) ------------ ------------
License fees and royalties $ 59 $ 248
Operating expenses:
Research and development 6,473 5,718
Acquired in-process research technology -- 45,150
General and administrative 3,949 1,391
------------ ------------
Total operating expenses 10,422 52,259
------------ ------------
Loss from operations (10,363) (52,011)
Interest and other income 847 498
Interest and other expense (172) (170)
------------ ------------
Net loss $ (9,688) $ (51,683)
============ ============
Basic and diluted net loss per share $ (0.18) $ (1.28)
============ ============
Weighted average shares used in calculation
of basic and diluted net loss per share 54,175,184 40,449,815
============ ============
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
(In thousands) 2005 2004
------------ ------------
(Unaudited) (Note 1)
Current assets:
Cash, restricted cash and cash equivalents $ 8,060 $ 10,376
Marketable securities 116,955 110,118
Interest and other receivables 1,638 1,550
Other current assets 2,824 2,733
------------ ------------
Total current assets 129,477 124,777
Property and equipment, net 1,975 2,089
Deposits and other assets 3,476 3,876
Intangible assets 942 1,131
------------ ------------
$135,870 $131,873
============ ============
Current liabilities 5,142 8,458
Noncurrent liabilities 988 1,352
Stockholders' equity 129,740 122,063
------------ ------------
$135,870 $131,873
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Note 1: Derived from audited financial statements included in the
Company's Annual Report on Form 10-K, filed with the SEC.
CONTACT: Geron Corporation
David L. Greenwood, 650-473-7765