Dallas, Texas 03/17/2014 (FINANCIALSTRENDS) – Geron Corporation (NASDAQ:GERN) a biotechnology company received a major setback when it was informed by U.S. Food and Drug Administration (FDA) to suspend its clinical trail on its drug imetelstat for treating Myelofibrosis(a disorder of the bone marrow.) FDA quoted a potential risk to the liver due to long term exposure of the drug.
During last November, Geron Corporation in its research reports informed imetelstat showed positive signs of curing patients with myelofibrosis. During Phase 2 study, it was noticed constant low-grade liver function test (LFT) abnormality occurred that could lead to potential risk of chronic liver injury following long-term exposure to imetelstat. According to the company’s reports the stoppage of imetelstat clinical trials will impact company’s Phase 2 research under thrombocythemia (ET) and multiple myeloma.
Geron Corporation (NASDAQ:GERN) Ratings Downgraded to Hold
After the company received notice from FDA commenced, Kahn Swick & Foti, LLC (“KSF”) has initiated investigation into Geron Corporation to check if the company had violated state or federal securities laws. Also, representing the investors, Glancy Binkow & Goldberg LLP, has filed a law suite in the United States District Court for the Northern District of California.
After the news the company’s stock price nosedived by 60%. The company’s shares were weighed by the market research analysts and its rating was downgraded accordingly. MLV& Co analysts have downgraded the rating from “buy” rating to a “hold” with price target $2.00 price target on the stock, from their preceding price target of $9.00. Piper Jaffray have downgraded an “overweight” rating to a “neutral” rating with price target as $5.50. With the recommended ratings as “hold” by five analysts and one tagged it as buy. The company has an average price target as $3.75 and average rating as “hold”