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FOSTER CITY, CA - Geron Corporation (NASDAQ:GERN), a biopharmaceutical company specializing in pharmaceutical preparations with a market capitalization of $1 billion, announced significant changes in its executive leadership. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 5.56, though it faces profitability challenges with negative EBITDA of $173 million in the last twelve months. Effective Monday, the company’s President, CEO, and Chairman of the Board, Dr. John A. Scarlett, concluded his service and resigned from the Board. To ensure a smooth transition, Dr. Scarlett will remain employed with Geron until the end of March.
Following Dr. Scarlett’s departure, Dawn C. Bir, a board member since March 2019, has been appointed as the Interim President and CEO on Monday. The company is actively searching for a permanent CEO. Bir brings extensive experience in the pharmaceutical industry, having held leadership roles at Reata Pharmaceuticals (NASDAQ:RETA), Inc., Pharmacyclics LLC, and Genentech, Inc.
No new compensatory arrangements have been made for Bir in connection with her interim appointment. Any future compensatory changes will be reported in an amendment to the company’s current report.
Additionally, Elizabeth G. O’Farrell, the Lead Independent (LON:IOG) Director on the Board, has been appointed Chair of the Board, effective Monday. Bir has also stepped down from the Compensation Committee and the Nominating and Corporate Governance Committee of the Board as part of the leadership transition.
Dr. Scarlett’s severance benefits align with the terms outlined in his employment agreement, detailed in the company’s proxy statement filed on March 27, 2024. This leadership change comes as Geron continues to advance its pharmaceutical preparations in the biotech industry.
Investors and stakeholders are watching closely as Geron navigates this transition period. The company’s stock performance, which has declined by 63% over the past six months according to InvestingPro data, and strategic direction in the coming months will likely be influenced by the newly structured leadership. While current market conditions have pushed the stock below its Fair Value, InvestingPro analysis reveals 12 additional key insights about Geron’s financial health and market position, available through a subscription.
This report is based on a press release statement filed with the Securities and Exchange Commission. For a comprehensive analysis of Geron’s financial position, including detailed metrics and expert insights, investors can access the full Pro Research Report available on InvestingPro, part of the platform’s coverage of over 1,400 US equities.
In other recent news, Geron Corporation announced that the European Commission has approved its drug RYTELO for specific cases of myelodysplastic syndromes. This approval follows its prior authorization in the U.S., making RYTELO the only telomerase inhibitor approved in both regions. The company reported fourth-quarter net product revenue of $47.5 million, which slightly exceeded internal estimates, despite a slowdown in the drug’s launch momentum. Analysts from Stifel and Scotiabank (TSX:BNS) adjusted their price targets for Geron to $4, citing a tempered outlook but maintaining positive ratings on the stock. Stifel retained a Buy rating, while Scotiabank kept a Sector Outperform rating, reflecting ongoing confidence in Rytelo’s market potential. H.C. Wainwright, however, downgraded Geron to a Neutral rating, citing stagnant revenue trends and a strategic pivot to enhance product awareness among healthcare professionals. The company is focusing on increasing prescriptions in first and second-line therapy settings, aiming to broaden the drug’s application. Additionally, Geron announced leadership changes, with Dr. John Scarlett stepping down and Dawn Carter Bir appointed as Interim President and CEO, as the company continues to explore the potential of Rytelo in treating various hematologic malignancies.
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