Geron's RYTELO Growth Slows as Costs Climb and Cash Drains
Geron's RYTELO net product revenue reached $57.5 million in the second quarter, up 11% sequentially even as demand growth decelerated for a second straight quarter.
Geron (GERN) reported second-quarter RYTELO net product revenue of $57.5 million, up 11% sequentially from $51.8 million in the first quarter and up 17.3% from $49.0 million a year earlier. It was the third consecutive quarter of demand growth for the anemia drug, though the pace has slowed: demand rose 5% quarter over quarter in the second quarter, down from 9% sequential growth reported in the fourth quarter of 2024.
The deceleration follows a period of rapid expansion. RYTELO's full-year 2024 net product revenue reached $183.6 million, up 140% from $76.5 million in 2023, the drug's first partial year on the market after its June 2024 launch. Ordering accounts grew about 8% sequentially in the second quarter to roughly 1,575, a slower rate of addition than the 13% sequential jump to about 1,300 accounts in the fourth quarter of 2024.
Geron's net loss widened slightly to $16.7 million in the second quarter from $16.4 million a year earlier, even as first-half revenue grew 24% year over year. The gap between top-line growth and the bottom line traces to cost of goods sold, which climbed to $9.2 million from $1.2 million a year earlier, an increase attributed to non-cash inventory-related expenses. That figure had been just $1.3 million as recently as the fourth quarter of 2024, marking a sharp reversal within two quarters.
Total costs and operating expenses rose to $70.0 million in the second quarter from $61.5 million a year earlier, an increase of about 14% that breaks from the roughly flat trend Geron posted across full-year 2024 opex figures. Research and development expense edged up to $22.0 million from $21.7 million, as manufacturing investment was partially offset by lower headcount costs following a December 2024 workforce reduction. Selling, general and administrative expense held roughly flat at $38.9 million versus $38.6 million a year earlier, with continued commercialization spending offset by the same personnel cuts. The income statement also carried a new restructuring charge line, $0.16 million for the quarter and $0.55 million for the first half, a disclosure that did not appear in the comparable 2023 filing.
Cash, cash equivalents, restricted cash and marketable securities fell to $326.9 million at the end of the second quarter from $341.0 million at the end of the first quarter and $401.1 million at the close of 2024, a drawdown of $74 million, or 18%, over two quarters.
Geron reiterated its full-year 2025 guidance of $220 million to $240 million in RYTELO net revenue and $230 million to $240 million in total operating expenses, unchanged from both the fourth-quarter 2024 release and a standalone guidance announcement issued in January.
The quarter also brought a leadership addition: Geron named Chinmaya Rath as Chief Business Officer, extending a management overhaul that began in October 2024 with the arrival of Chief Commercial Officer Ahmed ElNawawi and three other new senior vice presidents.