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 hematologic malignancies, skyrocketed as much as 33% after announcing that the Food and Drug Administration had removed the partial clinical hold on imetelstat in its myelofibrosis investigator-sponsored trial.
So what: As a refresher, the partial clinical hold was put in place by the FDA in March due to concerns of imetelstat-driven liver damage. Per its press release, Mayo Clinic investigator Dr. Ayalew Tefferi needed to supply the FDA with additional safety information regarding imetelstat as a treatment for myelofibrosis. With that being done and the partial hold now lifted, its IST can continue as planned. However, Geron notes that the FDA still has a full clinical hold in place for its polycythemia vera and multiple myeloma indications.
Now what: I'm not too shocked with today's press release as imetelstat had delivered meaningful clinical responses in its myelofibrosis investigator-sponsored trial which likely merited further research. In fact, this was right along the lines of what I expected would happen. However, we have to consider that imetelstat is Geron's only clinical compound, so if it continues to experience safety issues, is unable to get its full clinical hold removed for its two additional indications, or it simply fails to meet its primary endpoint in trials, then Geron's share price is likely going to be crushed. Companies with single drug clinical pipelines are far too risky for my blood and I'd suggest you also consider looking elsewhere for investing ideas.
Geron may have soared today, but it probably has a slim chance of being able to keep up with this top stock over the long run
The best biotech investors consistently reap gigantic profits by recognizing true potential earlier and more accurately than anyone else. Let me cut right to the chase. There is a product in development that will revolutionize not how we treat a common chronic illness, but potentially the entire health industry. Analysts are already licking their chops at the sales potential. In order to outsmart Wall Street and realize multi-bagger returns you will need to Motley Fool’s new free report on the dream-team responsible for this game-changing blockbuster. CLICK HERE NOW.
Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.