Geron Shares Plunge Following Disappointing Quarterly Results

Geron Corporation witnessed a significant sell-off in its stock price on Friday, with shares declining by more than 9%. This sharp drop reflects widespread investor disappointment triggered by the company’s latest quarterly earnings report, which revealed a substantial revenue shortfall. While the biotech firm managed to meet analyst expectations for its loss per share, its top-line performance fell well below market forecasts.

Management Shake-Up and Strategic Shifts

In a major strategic move at the end of October, Geron implemented sweeping changes to its leadership team. The company’s Chief Operating Officer and Chief Commercial Officer both departed from their roles. Ahmed ElNawawi has stepped into the position of new Commercial Chief, tasked with the critical mission of revitalizing U.S. sales for the company’s flagship drug.

The management acknowledged during the earnings presentation that significant improvements are needed in establishing RYTELO as a second-line therapy and enhancing physician education programs. These admissions came alongside the announcement of reduced operating expense projections for 2025, now estimated between $250 million and $260 million—a notable improvement from previous expectations of $270 million to $285 million.

RYTELO Performance and Pipeline Developments

The primary driver behind the stock’s decline appears to be the underwhelming commercial performance of RYTELO. The drug generated $47.2 million in revenue, missing analyst projections by a substantial 13%. More concerning for investors was the 3% quarter-over-quarter decrease in demand, indicating potential challenges in market adoption.

Should investors sell immediately? Or is it worth buying Geron?

Despite these commercial setbacks, Geron maintains a strong financial position with $420 million in cash and marketable securities. The company also reported progress in its clinical development pipeline, noting that the Phase 3 IMpactMF study for myelofibrosis achieved complete patient recruitment in September. Key milestones for this trial include an interim overall survival analysis scheduled for 2026, with final results expected in 2028.

Upcoming Catalysts and Market Sentiment

Market participants are now looking ahead to several near-term events that could influence Geron’s trajectory:

• CEO Harout Semerjian’s scheduled presentation at the Stifel Healthcare Conference later today
• The company’s appearance at the Evercore Healthcare Conference in December
• Anticipated new data from the IMerge study to be presented at the ASH Congress in December

While the analysts at Leerink have shown some confidence by raising their 2025 earnings per share estimate from -$0.15 to -$0.13, the pressure remains on Geron’s new leadership team to demonstrate tangible commercial progress and successful clinical milestones to restore investor confidence.