JNJ - Geron: Hold Despite Slim Premium As Promising Trials Await Funding
Investment Thesis
Imetelstat of Geron Corporation (GERN), with its superior therapeutic efficacy, as proven in a phase 2 trial, looks promising for a largely under-served MDS (myelodysplastic syndromes) market. With only a single drug in the pipeline focusing on two rare forms of blood cancer, the company's drug portfolio, however, remains under-diversified. After losing its research collaborator in September 2018 and being solely responsible for the future clinical trials and commercialization, Geron faces sinking revenue and rising costs. However, the shareholders are undeterred with the stock rising ~42% YTD (year-to-date), more than three