Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- RYTELO's US commercial launch is the top corporate priority, with a focus on increasing brand awareness and expanding prescriber base.
- Geron Corp (GERN, Financial) has a strong financial position with approximately $457.5 million in cash and equivalents as of March 31, 2025.
- The company is implementing strategic enhancements to support US commercial success, including increasing the sales team by more than 20%.
- RYTELO has received positive feedback for its efficacy and manageable safety profile, particularly in hard-to-treat lower-risk MDS patients.
- Geron Corp (GERN) is pursuing a disciplined approach to EU commercialization, leveraging third-party partnerships to minimize investment.
Negative Points
- Q1 RYTELO net revenues were $39.4 million, down $8 million from Q4, attributed to inventory drawdown among distributors.
- Demand for RYTELO was relatively flat, with only a 1% increase in the 13-week period ending March 28 compared to the prior 13 weeks.
- The company is facing challenges in expanding RYTELO's use in earlier lines of treatment, with most usage currently in the third-line plus setting.
- There is hesitancy among some healthcare providers to switch patients from standard care to RYTELO, partly due to concerns about cytopenias.
- Geron Corp (GERN) is still in the process of identifying a permanent Chief Executive Officer, with a decision expected within the next six months.
Q & A Highlights
Q: With inventory impacts behind you and demand improving, how are you thinking about Q2 expectations and the expected cadence for the year?
A: Jim Ziegler, Executive Vice President, Chief Commercial Officer, explained that the changes being made will start to have an impact now and going forward. The additional reps will be in the field beginning in Q3, with their impact expected later this year. They anticipate continued momentum building into Q2 and sustaining throughout 2025.
Q: Can you comment on your commercial efforts to drive the assessment of efficacy for patients on luspatercept to an earlier stage to promote switching to RYTELO?
A: Jim Ziegler noted that awareness is key, and when physicians are aware of RYTELO's product profile, they view it favorably. Joseph Eid, Non-Executive Independent Director, added that physicians using imetelstat have experienced positive benefits, and efficacy is unparalleled in this space.
Q: Can you walk through the inventory issue and whether it has been corrected?
A: Jim Ziegler explained that several factors contributed to higher inventory, including growth trends and seasonality. The inventory was drawn down, explaining the difference between the drop in net revenues and the 1% increase in demand. He confirmed that the inventory issue has stabilized.
Q: For physicians who have used RYTELO and are not reordering, are there any particular reasons for this?
A: Jim Ziegler stated that the commercial experience is reflective of the percentages seen in clinical trials, with no new surprises in the data. The reasons for not reordering could be dose interruptions due to cytopenia.
Q: Could you comment on the 10% demand increase seen in April and its sustainability?
A: Jim Ziegler noted that the April over March growth is a promising data point. The key is to sustain that growth and build momentum going forward, with the expectation of returning to growth based on strong execution.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
