Today's earnings release

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biopearl
Posts: 367
Joined: Wed Dec 09, 2015 12:12 am

Today's earnings release

Post by biopearl » Fri May 11, 2018 12:53 am

I think we are probably all (except for Phil!) a little taken aback by what was to me a surprise equity raise in the face of what we think should be near future good news and an anticipated stock price increase that might have brought a higher price if the data analysis for both studies were positive and the continuation agreement enacted. The shelf agreement did have an expiration of August, but one would think there should be some news before then, even though the continuation agreement does not have to happen by then (deadline of end of Q3). This is part of the news release today:

" The company expects the net cash proceeds to provide additional capital structure flexibility to potentially support (i) the future development of imetelstat in collaboration with Janssen, if Janssen elects to continue the collaboration, including potentially conducting one or more imetelstat independent development plans (IDPs) under the Collaboration Agreement; (ii) the further development of imetelstat by Geron in the event the collaboration with Janssen does not continue and Geron elects to continue development of imetelstat; or (iii) prospective in-licenses or acquisitions of other oncology products, programs or companies."

I do wonder if in some way they are rank ordered in a fashion to telegraph the way Geron sees each possibility as a relative likelihood. That's what I think Scarlett would do since each potential outcome has some positive aspect to it. So I will continue to think the odds favor possibility (i). I am sure Dr. S will be asked to justify this equity raise at the meeting next week so perhaps we will get some clarity then. Potential IDPs are probably not pubic knowledge. But I would call attention to the continued "buffing" of the pediatric consortium brain tumor study in clinical trials even though the study is officially over. Look under results posted just for interest. Regards, bp

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