Key Points

The company now has a reliable revenue stream thanks to its first commercialized drug. Nevertheless, analysts were expecting higher revenue in its first quarter. 10 stocks we like better than Geron ›

Shares of commercial-stage biotechGeron(NASDAQ: GERN) couldn't quite surmount the hump of Hump Day. After the company released its latest set of quarterly figures, its stock price wobbled as investors determined how best to digest the results. Finally, the stock closed on a downbeat note, booking a 0.8% loss on the day and comparing unfavorably to the slight (0.4%) gain of the S&P 500 index.

Rytelo brings in revenue

Geron unveiled its first-quarter numbers well before market open, showing that the oncology-focused biotech earned $39.6 million during the period. Nearly all of this was derived from sales of Rytelo, the company's cancer drug that won Food and Drug Administration (FDA) approval in June 2024. Year-over-year comparisons are therefore meaningless, as the company had no product revenue in the first quarter of 2024.Image source: Getty Images.

On the bottom line, now that Geron has a revenue stream, thanks to Rytelo, the company's net loss narrowed to $19.8 million ($0.03 per share) from the year-ago quarter's $55.4 million.

Analysts tracking the company's fortunes were clearly expecting notably higher take-up of the drug, however. On average, they were modeling just under $50.5 million for total revenue. By contrast, their estimate for net loss was in line at $0.03.

Geron waxed bullish on Rytelo's future. In the earnings release, Geron quoted interim president and CEO Dawn Bir saying, "We have received positive feedback from clinicians who have utilized Rytelo, supporting its strong therapeutic profile. We've identified specific opportunities and are making focused investments that we believe will strengthen the U.S. commercial trajectory."

Existing guidance maintained

Geron also maintained its existing guidance for operating expenses. It estimates that these will come in at $270 million to $285 million for the entirety of this year. It added that its current level of cash, equivalents, and marketable securities will suffice "to fund projected operating requirements for the foreseeable future." It did not get more specific.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Geron Stock Crept Higher Today was originally published by The Motley Fool

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