A shareholder of Geron Corp. has filed a derivative suit against current and former members of the biopharmaceutical company’s top brass, accusing them of making misleading statements about the commercial prospects of its cancer drug despite knowing that the company faced challenges to the drug’s success.
The complaint filed againstseveral current and former executives and directors of Geron for alleged breaches of their fiduciary duties between Feb. 28, 2024, and Feb. 25,2025.
The complaint states that in June 2024, Geron secured approval from the U.S. Food and Drug Administration for Rytelo for “use in the treatment of adult patients with transfusion-dependent anemia, defined as those with low to intermediate-risk myelodysplastic syndromes, requiring four or more red blood cell units over the course of eight weeks and who are not eligible for erythropoiesis-stimulating agents. The complaint alleges that during the relevant period, the defendants made several false and misleading statements about Rytelo’s potential and failed to disclose that a lack of awareness about the drug among healthcare providers was hindering Geron’s ability to take advantage of the large market for the drug. Additionally, it is alleged that the defendants failed to disclose that Rytelo’s commercial prospects were further harmed by seasonality and competition, that the drug’s commercial prospects were overstated, and that the defendants purposefully understated the risks associated with the weekly monitoring requirement for Rytelo.
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