What's Going On With Cancer Focused-Geron Stock On Friday?
Portfolio Pulse from Vandana Singh
Geron Corporation's (NASDAQ:GERN) shares traded lower despite the FDA's Oncologic Drugs Advisory Committee voting in favor of imetelstat for blood cancer. The panel supported the clinical benefit/risk profile of imetelstat, potentially Geron's first commercial treatment, targeting transfusion-dependent anemia in certain myelodysplastic syndromes patients. Imetelstat, competing with Bristol Myers Squibb's (NYSE:BMY) Reblozyl, is expected to generate $933 million in sales by 2029. Despite positive clinical trial results, FDA staff raised concerns about the treatment's risks versus benefits.
March 15, 2024 | 3:29 pm
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NEGATIVE IMPACT
Bristol Myers Squibb's Reblozyl, currently approved for the same indication as Geron's imetelstat, faces potential new competition.
The potential approval of imetelstat poses a direct competitive threat to Bristol Myers Squibb's Reblozyl, especially considering the projected sales and market opportunity for imetelstat. This competition could impact Reblozyl's market share and revenue from this specific treatment area, potentially leading to a negative short-term impact on BMY's stock.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Geron's imetelstat received positive feedback from the FDA's advisory committee for blood cancer treatment, potentially becoming its first commercial product.
The positive vote from the FDA's advisory committee significantly boosts Geron's prospects of getting imetelstat approved. This approval could lead to Geron's first commercial product in the market, directly impacting its revenue potential and stock valuation positively in the short term. However, FDA staff concerns and the current share price dip indicate market caution.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100