That is, if doughnuts and computers lost money and weren't for sale yet, and there was no guarantee that they'd ever be on the market.
I don't see this as the worst news ever for Geron. Anyone who's read my articles over the past few years knows that I think companies developing stem-cell products are more appropriate for a watchlist than the buy button.
Geron still has an oncology pipeline including imetelstat, which is in four phase 2 clinical trials for different types of cancer, and GRN1005, which will enter two phase 2 studies this year. Shutting down the stem-cell program and cutting about 38% of its workforce will help conserve cash to help fund those studies. Geron expects to end the year with $150 million, so it's not poor, but it's not exactly rich, either. Phase 2 trials aren't cheap.
Plus. there's always the possibility Geron could sell the program to a company with a longer time horizon and fewer cash-flow issues. Big pharma names including GlaxoSmithKline
Though it might be a good move for Geron -- we'll know after the imetelstat studies start reading out at the end of next year -- when the name synonymous with stem cells decides they're not worth continuing development on, investors should take notice. Companies such as Cytori Therapeutics
Good thing we have a free watchlist service that we're not giving up on:
- Add Teva Pharmaceutical Industries to My Watchlist.
- Add StemCells to My Watchlist.
- Add Geron to My Watchlist.
- Add Cytori Therapeutics to My Watchlist.
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