Wall Street Is Out of Patience With This Biotech

Geron  (NASDAQ: GERN  ) had a rough go of it over the last two years, as shares have lost over 70% of their value. The company controversially sold off its stem-cell business to focus on hot cancer drug candidate imetelstat. If imetelstat were a success, management would look brilliant for backing the right horse while avoiding the stem cell R&D black hole. Unfortunately, that proved to be a big if. Imetelstat's Phase 2 trial for breast cancer was cancelled, and Geron decided not to advance it to Phase 3 in NSCLC.

As Geron presses ahead with imetelstat, it is losing support from Wall Street. A Stifel Nicolaus analyst ripped the company's plans apart, calling them "flawed and sluggish," while dropping its rating all the way to sell.

Watch and find out what Motley Fool health-care analyst David Williamson thinks about Geron's downgrade, and what it means for investors. 

What macro trend was Warren Buffett referring to when he said, "This is the tapeworm that's eating at American competitiveness?" Find out in our free report, What's Really Eating at America's Competitiveness. You'll also discover an idea to profit as companies work to eradicate this efficiency-sucking tapeworm. Just click here for free, immediate access.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2314361, ~/Articles/ArticleHandler.aspx, 10/25/2014 7:41:59 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement