Geron has survived another scrape with disaster, but it’s still operating under a dark cloud.

Written by John Carroll

This morning Geron Corp. (NASDAQ:GERN) announced that:

• Johnson & Johnson's (NYSE:JNJ) review of the data from two studies of its drug imetelstat warranted continued work in myelodysplastic syndromes and myelofibrosis but that
• JNJ is still reserving the right to quit if the data don’t hold up later in the year.

Investors responded to the positive, though, sending shares of Geron up...[23% as of mid-morning on Monday].

The studies for this drug include a Phase II/III study in low-risk myelodysplastic syndromes. Now Geron says that they’ll be sharing data with the FDA before deciding whether to launch the second part of that study, which is being tweaked.

Geron also isn’t likely to spur much excitement with the observation that the spleen volume response in myelofibrosis was less than that seen for other drugs but Geron...[was quick] to note that there were several signs of clinical benefit to encourage researchers, adding that “the data suggest a potential overall survival benefit associated with imetelstat treatment in these patients.”

Enrollment in that second study, though, is still on hold — not an encouraging sign - and the jury is still out:

Geron expects:

• the longer-term data from the trial,
• potential health authority feedback,
• the totality of imetelstat program information, including an assessment of the evolving treatment landscape in MF
• and the potential application of imetelstat in multiple hematologic malignancies, including MDS, will inform Janssen’s decision whether to continue development of imetelstat in relapsed or refractory MF.

...Geron reorganized back in 2011, dropping its work on stem cell therapies and remaking itself as a cancer drug developer. The biotech has gone more than two decades, though, without finding a drug that warrants approval.