Geron Corp stock opened 25% up on Friday: here's why

Geron Corp (NASDAQ: GERN) opened about 25% up on Friday after securing an FDA approval for “imetelstat”. 

Here’s what it means for Geron stock

The Food & Drug Administration approved its lead asset as a late-line treatment for myelodysplastic syndromes (MDS). 

The telomerase inhibitor will now be available as Rytelo in the United States for the aforementioned type of blood cancer. John A. Scarlett - the chief executive of Geron Corp said in a press release today:

Note that $GERN’s imetelstat will be indicated for patients who are either ineligible for or did not respond to erythropoiesis-stimulating agents. 

The Biotech firm will be in competition with the likes of Bristol Myers and Merck now that its Rytelo has secured the said FDA approval. Geron stock is now up well over 150% versus its year-to-date low in mid-March. 

Analysts’ view on $GERN’s Rytelo

In March, the advisory committee of the Food & Drug Administration had voted largely in favour of Rytelo (12 to 2). Geron Corp will discuss the approval on a conference call on Friday. 

The biotechnology company also revealed wholesale prices of imetelstat today at $2,471 for the 47 mg vial and $9,884 for the 188 mg vial. Joel Beatty of Baird expects Rytelo sales to hit about $933 million by 2029. 

Kalpit Patel of B. Riley Securities, in contrast, expects its sales to peak at about $700 million. CEO Scarlett also said this morning:

The news arrives about a month after $GERN reported its financial results for the first quarter that topped Street estimates. The $3.0 billion company based out of Menlo Park, California did, however, remain in loss in its Q1. 

Plus, Wall Street analysts do not expect it to swing to profit before 2026. Geron Corp stock does not currently pay a dividend either.