Why Geron Corporation Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Geron (NASDAQ: GERN  ) , a clinical-stage biopharmaceutical company focused on developing therapies to treat cancer, dipped as much as 20% after filing an 8-K with the Securities and Exchange Commission before the opening bell, which briefly updated the Mayo Clinic's ongoing study of imetelstat in patients with myelofibrosis.

So what: According to the 8-K filing, the investigator-sponsored trial (IST) has been closed to new patients, with the company estimating 79 patients had been enrolled in the Mayo Clinic's IST. The filing also notes that "20 patients have discountinued from the study since its inception." Geron notes that the additional accrued safety and efficacy data should be sufficient to support its push to move imetelstat into a phase 2 trial in the first-half of 2014.

Now what: It's not painted out in black and white like things normally are in the biotech arena, but investors appear to be displeased with the high number of patients who dropped out of the study when it didn't appear safety or toxicity were a big issue when the Mayo Clinic released its findings in early December. Obviously, imetelstat offers a lot of promise based on these early studies done by the Mayo Clinic. As we saw in December, some of the study's patients demonstrated partial, and even complete, responses -- and a complete response is incredibly rare when dealing with myelofibrosis. In other words, imetelstat may still offer a bright future, but it's probably not worth getting too worked up over this experimental drug until we have a larger cohort of patients tested in phase 2 trials. Then we can more clearly see the drug's efficacy and safety profile, and make a smarter investing decision.

This top stock may leave Geron in its dust in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


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: 2811289, ~/Articles/ArticleHandler.aspx, 12/18/2014 9:34:25 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