Stock markets fluctuated over the last weeks. The sentiment was mostly positive, and the futures rallied as a result, but there were also a few drawbacks. Still, the markets are rebounding as the countries are easing lockdowns and businesses reopen. While most stocks endured significant losses, on the plus side, the shares are trading exceedingly low.
Tech stocks are often very profitable, but the pandemic has forced some of them to stop production. Geron Corporation also suffered from Coronavirus. This company is mainly focusing on the development of imetelstat. It is a small molecule telomerase inhibitor active in the treatment of R/R myelofibrosis (MF) and highly transfusion-dependent MDS. Even though Geron will likely experience some delays as a result of the virus, Wall Street thinks it’s a promising piece of technology.
Considering the stock is trading $1.36 per share currently, its an attractive prospect for those who plan to invest in healthcare.
How did the stock fare during the pandemic crisis?
Geron announced that, due to the pandemics’ impact, it wouldn’t be able to complete enrollment for the Phase 3 IMerge trial by 2020. Thomas Shrader, the BTIG analyst, thinks that because of delay, imetelstat’s approval and launch will occur in 2024 instead of 2023. But, he also stressed on the fact that Geron’s patients are as desperate as they come, due to AML and r/r MDS. Shrader thinks that physicians and patients are highly motivated to find something to try.
Previously the IMbark trial had a 32% discontinuation rate due to lack of efficacy. But the latest tests were effective. Geron is trying to work out the MF trial design currently. As it hopes to discuss the regulatory path forward with the FDA in second-quarter.
Shrader lowered his price target for this stock from $4 to $3, which still implies 114% upside potential. It seems other analysts agree with Shrader. The stock’s average price is $3.50 per share, with 149% upside potential.