Shares of commercial-stage biotech Geron (GERN 3.85%) couldn't quite surmount the hump of Hump Day. After the company released its latest set of quarterly figures, its stock price wobbled as investors determined how best to digest the results. Finally, the stock closed on a downbeat note, booking a 0.8% loss on the day and comparing unfavorably to the slight (0.4%) gain of the S&P 500 index.
Rytelo brings in revenue
Geron unveiled its first-quarter numbers well before market open, showing that the oncology-focused biotech earned $39.6 million during the period. Nearly all of this was derived from sales of Rytelo, the company's cancer drug that won Food and Drug Administration (FDA) approval in June 2024. Year-over-year comparisons are therefore meaningless, as the company had no product revenue in the first quarter of 2024.
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On the bottom line, now that Geron has a revenue stream, thanks to Rytelo, the company's net loss narrowed to $19.8 million ($0.03 per share) from the year-ago quarter's $55.4 million.
Analysts tracking the company's fortunes were clearly expecting notably higher take-up of the drug, however. On average, they were modeling just under $50.5 million for total revenue. By contrast, their estimate for net loss was in line at $0.03.
Geron waxed bullish on Rytelo's future. In the earnings release, Geron quoted interim president and CEO Dawn Bir saying, "We have received positive feedback from clinicians who have utilized Rytelo, supporting its strong therapeutic profile. We've identified specific opportunities and are making focused investments that we believe will strengthen the U.S. commercial trajectory."
NASDAQ: GERN
Key Data Points
Existing guidance maintained
Geron also maintained its existing guidance for operating expenses. It estimates that these will come in at $270 million to $285 million for the entirety of this year. It added that its current level of cash, equivalents, and marketable securities will suffice "to fund projected operating requirements for the foreseeable future." It did not get more specific.
