Geron Corporation (NASDAQ: GERN) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company announced that a Collaboration and License Agreement (CLA) has been terminated, upsetting investors and sending the stock tumbling down. Today, we’ll talk about:
- The news;
- what we’re seeing from GERN as a result; and
- what we’ll be watching for with regard to the stock ahead.
GERN Announces CLA Termination
As mentioned above, Geron Corporation is having an incredibly rough start to the trading session this morning after the company announced that a CLA has been terminated. In a press release issued early this morning, the company said that Jannsen Biotech, Inc. has terminated a CLA entered into with the company in 2014. In the release, GERN said that the termination was the result of a strategic portfolio evaluation that priortizes products within the Jannsen portfolio, rather than partnered products. As a result, GERN has sole global rights to develop and commercialize imetelstat. In a statement, John A. Scarlett, M.D., President and CEO at GERN, had the following to offer:
We are grateful for the collaboration with Janssen, who successfully managed two Phase 2 trials of imetelstat… We believe the clinical results from IMbark provide valuable insights into the potential future development of imetelstat for an underserved relapsed and refractory myelofibrosis patient population. We also believe the combined data of 38 patients from the initial and expansion cohorts for the target patient population from the Phase 2 portion of IMerge support further development of imetelstat, and we are therefore prioritizing the initiation of the Phase 3 portion of IMerge.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Geron Corporation, the news proved to be overwhelmingly negative. After all, Jannsen was a key partner that shared in the expenses and expertise associated with the development of imetelstat. Without this partner, the company will have to carry the burden on their own, which is a concern for investors. So, it comes as no surprise to see that upset investors are sending the stock on a run for the bottom. At the moment (8:27), GERN is trading at $2.17 per share after a loss of $4.06 per share or 65.17% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on GERN. In particular, we’re interested in following the story surrounding the company’s continued work to bring imetelstat. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!