Geron shares fall after Janssen discontinues partnership

Janssen Biotech Inc. said it returned exclusive, worldwide development and commercialization rights for imetelstat to Geron Corp. (NASDAQ:GERN). The Johnson & Johnson (NYSE:JNJ) unit said the decision was based on a strategic review of its portfolio. The news sent Geron shares down $3.92 (63%) to $2.31 on Sept. 27.

Despite multiple setbacks for imetelstat, including a 2014 clinical hold for two indications the therapy is no longer in development for, Geron said it will prioritize moving forward with the planned Phase III portion of the Phase II/III IMerge trial of imetelstat to treat myelodysplastic syndromes (MDS). As of Aug. 31, the company had about $183 million in cash, which it expects to provide enough runway to support the Phase III start...