Dallas, Texas 06/30/2015 (Financialstrend) – Geron Corporation (NASDAQ:GERN) which develops biomedical and genetic therapies continue to gain on Monday. The share prices of this stock have been steadily increasing in the past four weeks, reporting gains of nearly 11.1%.
Much of the gains in the weeks past appear to be because of many positive news reports emerging from Geron Corporation. One of the first was the announcement of the Receipt of FDA orphan drug designation for its drug, Imetelstat, for use as treatment for Myelofibrosis. The designation was announced on Jan 11, leading to the strong gains Geron Corporation (NASDAQ:GERN) reported ever since.
Imetelstat is a very important inhibitor as it prevents the key factor required for duplication of cancer cells. The license for this drug is with Janssen Biotech Inc, which will allow commercialization as well as development of the onocology indications. The application for FDA orphan designation was sponsored by Janssen. If such a drug is approved, the sponsor is entitled to exclusive marketing rights, exemption from certain application fees to the FDA as well as tax credits wherever clinical testing qualifies.
For Geron Corporation (NASDAQ:GERN) Imetelstat to be designated as an orphan drug, FDA considers it to hold potential to treat rare diseases, which affects more than 200,000 citizen of the United States.
Analysts claim that the company earnings results do hold a lot of promise, as they are indicative of an upside, given the orphan drug designation. Though the company appears to have sold off the rights of its best drug ever to Janssen, it is expected to benefit from the association in the long-term. Development of orphan drugs is not only about huge investments but also risks of the drug failing at clinical stages. Therefore, Imetelstat’s success is finely twined with Geron Corporation’s growth at the stock markets, in the long term.