Product Revenue $15.5 Million in 2008, Up 94% from Prior Year
CONCORD, Calif.--(BUSINESS WIRE)--Feb. 26, 2009--
Cerus Corporation (NASDAQ:CERS) announced today financial results for
the fourth quarter and year ended December 31, 2008. Total revenue for
the year ended December 31, 2008, was $16.5 million, an increase of 49%
from $11.0 million in 2007. Product revenue for the INTERCEPT Blood
System increased to $15.5 million during 2008, up 94% from $8.0 million
during 2007. The Company recognized $1.0 million in government grant
funding in 2008, $2.0 million less than in the prior year. Cost of
product sales was $9.7 million in 2008, up from $5.2 million in 2007.
Gross margins on product sales were 38% in 2008, up from 35% in 2007.
Total operating expenses for 2008 were $37.4 million, down 24% from
$49.0 million in 2007, with 11% higher selling, general and
administrative expenses in 2008 associated with the Company’s
commercialization efforts of the INTERCEPT Blood System in Europe,
offset by 32% lower research and development expenses year over year.
Operating expenses in 2007 also included a $9.5 million non-cash
write-down of the Company’s equity holding in BioOne.
Net loss for 2008 was $29.2 million, or $0.90 per share, compared to
$45.3 million, or $1.42 per share in 2007. In November 2007, the Company
spun off its immunotherapy business, which has been accounted for as a
discontinued operation. Net loss from continuing operations for 2008 was
$29.2 million, or $0.90 per share, compared to $39.1 million, or $1.23
per share in 2007.
Total revenue for the quarter ended December 31, 2008, was $3.6 million,
up from $2.4 million in the fourth quarter of 2007. Included in the
fourth quarter 2008 revenues were $3.5 million from product revenues, up
48% from the $2.4 million recognized in the fourth quarter of 2007.
Government grant revenue for the fourth quarter of 2008 was $0.1
million, whereas no such revenue was recognized in the fourth quarter of
2007. Cost of product sales was $3.0 million in the fourth quarter of
2008, of which $0.4 million related to a non-recurring charge, compared
to $1.7 million in the fourth quarter of 2007.
Gross margins from product sales net of royalties to Fenwal were 16% in
the fourth quarter of 2008, compared to 31% in the fourth quarter of
2007. Quarterly fluctuations in margins are due not only to product mix,
but also to the timing and direction of manufacturing and purchase price
variances and nonrecurring charges. Margins in the fourth quarter of
2008 compared to the fourth quarter of 2007 were adversely impacted by
manufacturing and purchase price variances and by a reserve for
work-in-process inventory that did not initially meet release
specifications. By contrast, margins in the fourth quarter of 2007 were
favorably impacted by manufacturing and purchase price variances.
Nonrecurring charges within cost of goods in the fourth quarter of 2008
negatively impacted gross margins by ten percentage points.
Total operating expenses for the fourth quarter of 2008 were $7.8
million, down from $11.6 million in the fourth quarter of 2007, with
lower spending in the current period in research and development and
selling, general and administrative expenses.
Net loss in the fourth quarter of 2008 was $6.5 million, compared to a
net loss from continuing operations in the fourth quarter of 2007 of
$10.2 million, when the Company also recognized $1.2 million in net
losses from discontinued operations. Net loss per share was $0.20 for
the fourth quarter of 2008, compared to $0.36 per share in the fourth
quarter of 2007. Net loss from continuing operations in the fourth
quarter of 2007 was $0.32 per share.
The Company ended the year with cash and marketable securities of $22.6
million, a reduction of $34.3 million from the balances held at the end
of 2007, of which $8.1 million was due to an increase in working
capital. The Company expects that losses from operations and working
capital investments in 2009 will aggregate to less than $20 million.
Consequently, management expects the Company’s current cash balance will
be adequate to fund operations into early 2010. While the Company
currently has a $10 million senior credit facility in place, the Company
will be unable to draw down any funds against the facility until such
time as equity or subordinated debt capital is added to the Company’s
balance sheet to meet a minimum capital covenant under the terms of this
facility.
"We are pleased to have closed the year with $15.5 million in product
sales, nearly doubling last year’s results," said Claes Glassell,
president and chief executive officer of Cerus Corporation. "We believe
that we have laid the foundation for further growth in 2009."
Highlights from the fourth quarter and recent developments include:
-
Continued commercial progress of the INTERCEPT Blood System in Europe,
Russia, and the Middle East, with sales now into 18 countries;
-
Reported final regulatory approval allowing commercialization of the
INTERCEPT platelet system in the Frankfurt region of the German Red
Cross;
-
Extended supply agreement with Fenwal relating to disposable kits
through 2013;
-
Advanced discussions with the Food and Drug Administration on the
design of a study to support product approval of the platelet system
in the U.S.; and
-
Initiated Phase I clinical trial of the INTERCEPT red blood cell
system.
Quarterly Conference Call
The Company has scheduled its quarterly conference call for 4:30 p.m.
Eastern time today. To access the webcast via the internet, log on to www.cerus.com.
Please connect to the Company's website at least 15 minutes prior to the
conference call to ensure adequate time for any software downloads.
Alternatively, you may access the live conference call by dialing
877-407-0782 (U.S.) or 201-689-8567 (International). A telephone and
webcast replay will be available approximately two hours after the call
through March 5, 2009. The replay can be accessed by dialing
877-660-6853 (U.S.) or 201-612-7415 (International), and entering
account number 286 and conference ID number 285647. The webcast will be
archived on www.cerus.com.
ABOUT CERUS
Cerus Corporation is a biomedical products company focused on
commercializing the INTERCEPT Blood System to enhance blood safety. The
INTERCEPT Blood System is designed to inactivate blood-borne pathogens
in donated blood components intended for transfusion. Cerus currently
markets the INTERCEPT Blood System for both platelets and plasma in
Europe and the Middle East. The Company is also pursuing regulatory
approvals in the United States and other countries. The INTERCEPT red
blood cell system is currently in clinical development.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation.
This press release contains forward-looking statements.Any
statements contained in this press release that are not statements of
historical fact may be deemed to be forward-looking statements,
including, without limitation, statements regarding the expected cash
requirements of the Company in 2009 and further growth of the Company’s
product sales in 2009.Actual results could differ
materially from these forward-looking statements as a result of certain
factors, including, without limitation, risks associated with the
commercialization and market acceptance of the INTERCEPT Blood System
and the sufficiency of the Company’s current capital resources, as well
as other risks detailed in the company's filings with the Securities and
Exchange Commission, including the Company's latest Quarterly Report of
Form 10-Q, filed with the Securities and Exchange Commission on October
30, 2008, and its Annual Report on Form 10-K, filed with the Securities
and Exchange Commission on February 27, 2008.No pathogen
inactivation system has been shown to inactivate all pathogens.You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.The company does not undertake any obligation to update any
forward-looking statements as a result of new information, future
events, changed assumptions or otherwise.
CERUS CORPORATION CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION (In thousands except per share information) |
|
| |
| |
| | Three Months Ended December 31, | | Twelve Months Ended December 31, |
| |
2008
|
|
2007
| |
2008
|
|
2007
|
|
Revenue
| | | | | | | | |
|
Product revenue
| |
$
|
3,541
| | |
$
|
2,395
| | |
$
|
15,518
| | |
$
|
8,015
| |
|
Government grant and cooperative agreements
| |
|
85
|
| |
|
--
|
| |
|
989
|
| |
|
3,029
|
|
|
Total Revenue
| |
|
3,626
|
| |
|
2,395
|
| |
|
16,507
|
| |
|
11,044
|
|
| | | | | | | |
|
|
Cost of product revenue
| |
|
2,964
|
| |
|
1,664
|
| |
|
9,668
|
| |
|
5,228
|
|
|
Gross profit
| | |
662
| | | |
731
| | | |
6,839
| | | |
5,816
| |
| | | | | | | |
|
|
Operating expenses
| | | | | | | | |
|
Research and development
| | |
2,268
| | | |
4,126
| | | |
10,205
| | | |
14,957
| |
|
Selling, general and administrative
| | |
5,557
| | | |
7,471
| | | |
27,164
| | | |
24,575
| |
|
Impairment of long-term investment in related party
| |
|
--
|
| |
|
--
|
| |
|
--
|
| |
|
9,450
|
|
|
Total operating expenses
| |
|
7,825
|
| |
|
11,597
|
| |
|
37,369
|
| |
|
48,982
|
|
|
Loss from operations
| | |
(7,163
|
)
| | |
(10,866
|
)
| | |
(30,530
|
)
| | |
(43,166
|
)
|
|
Interest and other income (expense), net
| |
|
649
|
| |
|
648
|
| |
|
1,349
|
| |
|
4,066
|
|
|
Loss from continuing operations
| |
$
|
(6,514
|
)
| |
$
|
(10,218
|
)
| |
$
|
(29,181
|
)
| |
$
|
(39,100
|
)
|
| | | | | | | |
|
|
Discontinued operations:
| | | | | | | | |
|
Loss from discontinued operations
| |
|
--
|
| |
|
(1,212
|
)
| |
|
--
|
| |
|
(6,204
|
)
|
|
Net loss
| |
$
|
(6,514
|
)
| |
$
|
(11,430
|
)
| |
$
|
(29,181
|
)
| |
$
|
(45,304
|
)
|
| | | | | | | |
|
|
Net loss per share:
| | | | | | | | |
Loss from continuing operations per common share – basic and
diluted
| |
$
|
(0.20
|
)
| |
$
|
(0.32
|
)
| |
$
|
(0.90
|
)
| |
$
|
(1.23
|
)
|
Loss from discontinued operations per common share – basic and
diluted
| |
$
|
--
| | |
$
|
(0.04
|
)
| |
$
|
--
| | |
$
|
(0.19
|
)
|
|
Net loss per share – basic and diluted
| |
$
|
(0.20
|
)
| |
$
|
(0.36
|
)
| |
$
|
(0.90
|
)
| |
$
|
(1.42
|
)
|
| | | | | | | |
|
|
Weighted average common shares outstanding used for basic and
diluted loss per share
| | | | | | | | |
|
Basic
| | |
32,540
| | | |
32,060
| | | |
32,430
| | | |
31,870
| |
|
Diluted
| | |
32,540
| | | |
32,060
| | | |
32,430
| | | |
31,870
| |
Cerus Corporation Condensed Consolidated Unaudited Balance Sheets (In thousands) |
|
|
|
| |
| | December 31, 2008 | | December 31, 2007 |
| | | |
|
|
Cash, cash equivalents, and short-term investments
| |
$
|
22,578
| |
$
|
56,850
|
|
Accounts receivable and other current assets
| | |
8,356
| | |
9,990
|
|
Inventories
| | |
11,109
| | |
7,062
|
|
Property and equipment, net
| | |
1,844
| | |
1,322
|
|
Other assets
| |
|
3,452
| |
|
2,985
|
|
Total Assets
| |
$
|
47,339
| |
$
|
78,209
|
| | | |
|
|
Accounts payable and accrued liabilities
| |
$
|
12,453
| |
$
|
16,786
|
|
Deferred revenue
| | |
445
| | |
1,504
|
|
Other current liabilities
| | |
--
| | |
30
|
|
Other long-term liabilities
| |
|
163
| |
|
2
|
|
Total liabilities
| |
|
13,061
| |
|
18,322
|
|
Stockholders’ equity
| |
|
34,278
| |
|
59,887
|
|
Total liabilities and stockholders’ equity
| |
$
|
47,339
| |
$
|
78,209
|
Source: Cerus Corporation
Cerus Corporation
William J. Dawson, 925-288-6053
Vice
President, Finance & CFO