Geron Corp's (GERN) stock surged 6.2% in pre-market trading on Thursday, following the release of the company's Q4 2024 earnings results. The biotech firm reported robust financial performance, driven by the successful launch of its drug Rytelo for the treatment of lower-risk myelodysplastic syndromes (MDS) in the US.

Rytelo, a first-in-class telomerase inhibitor, generated $47.5 million in net product revenue during the fourth quarter and $76.5 million for the full year 2024, exceeding Geron's internal expectations. The strong sales, coupled with a prudent cost structure, enabled the company to end the year with a solid cash position of approximately $503 million.

Geron's management expressed confidence in Rytelo's potential to establish itself as a standard of care for eligible lower-risk MDS patients, particularly in the second-line setting. The drug received favorable placement in the NCCN guidelines, including a Category 1 treatment recommendation, bolstering its prospects.

However, despite the promising start, the company acknowledged observing flat revenue trends for Rytelo over the past few months. The majority of new patient starts have been in the third-line plus segment, with lower-than-expected uptake in earlier lines of therapy. To address this challenge, Geron is intensifying its efforts to drive awareness and education among healthcare providers, refining its sales strategies, and optimizing its engagement with target prescribers.