Geron Corp shares tumble after Janssen Biotech ends collaboration on imetelstat drug program

Shares of Geron Corporation (NASDAQ:GERN) tumbled Thursday after the California-based biotech announced that Janssen Biotech Inc had terminated a long running collaboration and license agreement with it for imetelstat, a potential treatment for myeloid malignances, or clonal diseases.

Geron stock plunged nearly 60% to $2.50 before the opening bell.

In 2014, Geron entered into a license agreement with Janssen Biotech to develop and commercialize imetelstat worldwide for indications in oncology, including hematologic myeloid malignancies and other clonal diseases.

Janssen said on Thursday that the decision to end the collaboration stemmed from a “strategic” portfolio evaluation and “prioritization of assets” within its portfolio. Janssen will work with Geron to transition the imetelstat program back to the Menlo Park company.

Patients currently enrolled in the ongoing imetelstat clinical trials will continue to be supported through the respective trial protocols, including treatment and follow-up, said Geron.

Geron has regained the global rights to develop and commercialize imetelstat.

“We are grateful for the collaboration with Janssen, who successfully managed two Phase 2 trials of imetelstat,” said Geron Corporation CEO John A Scarlett.

“We believe the clinical results from IMbark provide valuable insights into the potential future development of imetelstat for an underserved relapsed and refractory myelofibrosis patient population. We also believe the combined data of 38 patients from the initial and expansion cohorts for the target patient population from the Phase 2 portion of IMerge support further development of imetelstat, and we are therefore prioritizing the initiation of the Phase 3 portion of IMerge,” he added.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors