NEW YORK, March 26, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Geron Corporation (“Geron” or the “Company”) (NASDAQ: GERN) and certain officers. The class action, filed in the United States District Court for the Northern District of California, and docketed under 25-cv-02563, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Geron securities between February 28, 2024 and February 25, 2025, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Geron securities during the Class Period, you have until May 12, 2025 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Geron, a late-stage clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for the treatment of cancer and chronic degenerative diseases. The Company’s sole product candidate is RYTELO (imetelstat), a telomerase inhibitor designed to prevent the uncontrolled proliferation of malignant stem and progenitor cells in myeloid hematologic malignancies for the treatment of low- to intermediate-1 risk myelodysplastic syndromes (“lower-risk MDS”) and intermediate-2 or high-risk myelofibrosis. Geron categorizes treatment eligible patients with lower-risk MDS into three groups: (1) first-line patients ineligible for erythropoiesis-stimulating agents (“ESAs”); (2) second-line ESA relapsed/refractory patients; and (3) third-line plus ESA relapsed/refractory patients.
According to Geron, “[l]ower-risk MDS is a progressive blood cancer with high unmet need, where many patients with anemia become dependent on red blood cell transfusions, which can be associated with clinical consequences and decreased quality of life.” At all relevant times, the Company has touted itself as being “in a strong position for value creation” based on its “differentiated product candidate,” the “potential for significant commercial opportunities in transfusion-dependent, lower-risk MDS,” and the “excellence and experience of [its] employees.”
In June 2024, Geron commercially launched RYTELO following its approval by the United States Food and Drug Administration (“FDA”) for the treatment of adult patients with lower-risk MDS with transfusion-dependent anemia requiring four or more red blood cell units over eight weeks who have not responded to or have lost response to or are ineligible for ESAs. In a press release announcing the drug’s FDA approval, Geron stated that it “believe[s] eligible patients with lower-risk MDS can potentially experience meaningful clinical benefit” from RYTELO and that “[t]he approval of RYTELO as the first telomerase inhibitor is a testament to the power of [its] science and the passion of [its] people to innovate in the field of blood cancer.” Further, under the heading “important safety information,” the press release provided that patients taking RYTELO would need to be monitored “weekly for the first two cycles, prior to each cycle thereafter, and as clinically indicated.” However, Geron has described this ongoing monitoring requirement as ‘standard’ and has stated that neither community nor academic facilities consider such monitoring requirements to be a burden..
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) despite contrary representations to investors, a lack of awareness of RYTELO among health care providers, the weekly monitoring requirement, and seasonality and existing competition would impair Geron’s ability to capitalize on the purportedly significant unmet need for the drug; (ii) accordingly, the RYTELO launch was unlikely to be as profitable as the Company had led investors to believe; (iii) as a result, Geron’s business and/or financial prospects were overstated; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On February 26, 2025, Geron announced its financial results for Q4 and full year 2024. Specifically, Geron reported Q4 2024 earnings per share (“EPS”) of -$0.04 and revenue of $47.54 million, falling far short of the -$0.02 to -$0.03 EPS and $61.93 revenue million figures projected by analysts.
That same day, Geron hosted an earnings call with investors and analysts to discuss the Company’s Q4 and full year 2024 results, during which Geron’s Chief Executive Officer Defendant John A. Scarlett revealed that the Company had “observed flat revenue trends over the last few months” for RYTELO. The Company attributed this diminished growth to seasonality, competition, lack of awareness among health care providers, and the burden of the weekly monitoring requirement. Further, Geron’s Executive Vice President and Chief Commercial Officer Defendant Jim Ziegler stated that, in response to the foregoing, the Company was “assessing other possible root causes for the flat revenue trends” and considering strategic adjustments to invigorate growth, including “increasing [health care provider awareness” of RYTELO.
Market analysts were quick to comment on Geron’s disappointing Q4 2024 results and emphasize the Company’s failure to effectively market and commercialize RYTELO. For example, on February 26, 2025, the investment bank H.C. Wainwright & Co (“H.C. Wainwright”) downgraded the stock from buy to neutral, stating “[f]lat revenue trend leads Geron to rethink launch strategy; we expect it may take time to build footing.” Further, H.C. Wainwright noted that the majority of prescriptions remain in the academic setting and highlighted the lack of first-line new patient starts, naming competition as a likely factor. Similarly, Barclays lowered its price target 56%, citing RYTELO’s new patient start flatness, the impact of seasonality on sales, “hesitancy around starting products that require monitoring,” and competitive dynamics.
On this news, Geron’s stock price fell $0.76 per share, or 32.06%, to close at $1.61 per share on February 26, 2025.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
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CONTACT:
Danielle Peyton
Pomerantz LLP
dpeyton@pomlaw.com
646-581-9980 ext. 7980
