Geron Corporation Secures $375 Million in Funding from Royalty Pharma and Pharmakon Advisors

Geron Corporation, a commercial-stage biopharmaceutical company focused on blood cancer, has announced a significant financial boost of up to $375 million in synthetic royalty and debt financings. The company has secured $250 million in cash at closing and has an additional $125 million in debt available through transactions with Royalty Pharma and investment funds managed by Pharmakon Advisors, LP. The deal involves a $125 million synthetic royalty with Royalty Pharma and $250 million of committed senior secured debt with investment funds managed by Pharmakon Advisors, LP.

This financial commitment aims to strengthen Geron's cash position and balance sheet, providing flexibility for future investments. The company plans to utilize the proceeds to support the commercial launch of RYTELO in the U.S., potential launch in the EU, complete the Phase 3 IMpactMF trial in relapsed/refractory myelofibrosis, invest in supply chain redundancy for RYTELO, and meet general working capital requirements.

Royalty Pharma will receive tiered royalty payments on U.S. net sales of RYTELO, while Pharmakon Advisors, LP has committed to a 5-year, senior secured term loan of up to $250 million. The partnership with these entities reflects the significant commercial potential of RYTELO and signifies Geron's strategic advancement in the biopharmaceutical sector. Additionally, Geron has engaged TD Cowen as financial advisor and Cooley LLP as legal advisor for the transactions, further underscoring the significance of this funding development.

The company's first-in-class telomerase inhibitor, RYTELO, has garnered approval in the United States for the treatment of certain adult patients with lower-risk myelodysplastic syndromes (LR-MDS) with transfusion-dependent anemia. Geron is also actively conducting pivotal Phase 3 clinical trials of imetelstat in JAK-inhibitor relapsed/refractory myelofibrosis (R/R MF), as well as exploring its potential in other myeloid hematologic malignancies. The financing secured from Royalty Pharma and Pharmakon Advisors, LP positions Geron to drive commercial success and further develop RYTELO, marking a significant milestone for the company's future endeavors.