Shares of Geron Corporation (NASDAQ: GERN) surged 9.13% in pre-market trading on Wednesday, following the biotech company's announcements of a significant financing deal and better-than-expected third-quarter results.
Geron announced that it has secured up to $375 million in funding through synthetic royalty and debt financing agreements with Royalty Pharma and investment funds managed by Pharmakon Advisors. The company received $250 million in gross proceeds at closing, with access to an additional $125 million in debt financing.
The financing strengthens Geron's balance sheet and provides the necessary capital to support the commercial launch of its telomerase inhibitor drug RYTELO™ in the U.S. and potential launch in the European Union. The funds will also be used to complete the ongoing Phase 3 IMpactMF trial in relapsed/refractory myelofibrosis and invest in supply chain redundancy for RYTELO.
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