Goldman Sachs lifts Geron stock target to $5 on FDA panel support

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On Friday, Goldman Sachs, a leading investment banking firm, raised its price target for Geron (NASDAQ:) Corporation (NASDAQ:GERN) shares from $4.00 to $5.00, while retaining a Buy rating. This adjustment follows the favorable outcome of a recent FDA Advisory Committee vote regarding Geron’s drug, imetelstat.

The FDA’s Advisory Committee voted 12-2 in favor of the benefit/risk profile of imetelstat for patients with lower-risk myelodysplastic syndrome (LR-MDS) who are either ineligible for, or have relapsed or are refractory to, erythropoiesis-stimulating agents (ESAs). The committee’s physicians expressed strong support for the clinical benefits of the drug, despite recognizing the safety risks identified by the FDA.

The hematologists on the panel highlighted that the management of cytopenias, a potential side effect, could be incorporated into standard clinical practices. This positive reception has led analysts to anticipate the approval of Geron’s New Drug Application (NDA) for imetelstat by or before the Prescription Drug User Fee Act (PDUFA) date of June 16, 2024.

The drug’s commercial launch is also looked upon favorably due to the significant unmet need within the LR-MDS patient population. Key Opinion Leaders (KOLs) and discussions during the committee meeting underscored the enthusiasm for imetelstat. Consequently, the firm has adjusted its model to reflect a 95% probability of approval for imetelstat in treating LR-MDS, up from the previous 90%.

In light of these developments, Goldman Sachs has updated its M&A rank for Geron to 2 from the previous rank of 3.

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