CONCORD, Calif.--(BUSINESS WIRE)--Apr. 30, 2009--
Cerus Corporation (NASDAQ:CERS) today announced financial results for
the first quarter ended March 31, 2009.
Product revenue for the INTERCEPT Blood System was $3.1 million during
the first quarter of 2009, down from $4.9 million during the first
quarter of 2008, when $1.2 million of previously deferred product
revenue was recognized. This decline in product revenue was largely due
to no illuminators being sold during the first quarter of 2009 in
contrast to the first quarter of 2008. Despite the lack of illuminator
sales, disposable kit sales in total increased in the first quarter of
2009 compared to the same period in 2008. Government grant revenue in
the first quarter of 2009 was $0.4 million, compared to $0.1 million in
the first quarter of 2008. Total revenue for the first quarter of 2009
was $3.5 million, down from $5.0 million for the first quarter of 2008,
due primarily to decreased product sales offset by modestly higher
government grant revenue.
Total operating expenses for the first quarter of 2009 were $8.8
million, down from $9.9 million for the same period in 2008. The
decrease in operating expenses was due to a reduction in research and
development expenses and selling, general and administrative expenses,
partially offset by non-recurring restructuring costs of $0.7 million
associated with the Company’s restructuring plans, which were announced
in March 2009.
Net loss for the first quarter of 2009 was $7.4 million, or $0.23 per
share, compared to a net loss of $5.9 million, or $0.18 per share, for
the first quarter of 2008.
As announced in March 2009, the Company has begun implementing a plan to
focus resources on commercializing the INTERCEPT platelet and plasma
systems in Europe and to realign its costs structure accordingly. As a
consequence of this re-focusing and the associated reduction in force
announced in March, management expects operating expense levels to
decline meaningfully and to carefully manage further investment in
working capital in future periods.
At March 31, 2009, the Company had cash, cash equivalents and short-term
investments of $15.4 million, down from $22.6 million at December 31,
2008. Management expects the rate of cash consumed during the remainder
of 2009 to be significantly reduced relative to the first quarter of
2009, due in large part to the savings expected to be realized as a
result of implementing the restructuring plan. As a consequence,
management expects existing cash resources to be adequate to fund the
Company’s operations into the first half of 2010.
“It has been an active, yet challenging quarter for Cerus. We took
several meaningful steps toward commercial success in Europe. Through a
re-focusing of the company’s priorities, we have significantly extended
our cash runway,” said Claes Glassell, president and CEO of Cerus
Corporation.
RECENT HIGHLIGHTS:
- Product sales in the first quarter of 2009 were $3.1 million, with
the volume of disposable kit sales sold increasing from the first
quarter 2008;
- Received CE mark approval on a new product configuration of the
platelet system that is expected to make INTERCEPT even more
attractive to prospective customers in Germany, the U.K. and in other
countries;
- The Frankfurt region of the German Red Cross received its second
marketing authorization to sell INTERCEPT-treated platelets, paving
the way for commercial adoption once a customer-sponsored study to
confirm the economic and clinical advantages of INTERCEPT is completed;
- Signed a contract with one of two regions of the Belgian Red Cross
to purchase the INTERCEPT platelet system;
- Nearly completed enrollment and initial patient dosing in a Phase I
clinical trial for the red blood cell system, with completion of the
clinical trial expected by mid-2009;
- Reduced workforce in March by just over 30% and reduced operating
expenses to conserve resources and focus efforts on commercializing
the INTERCEPT Blood System, which the Company expects will result in
sufficient existing resources to fund operations into the first half
of 2010.
QUARTERLY CONFERENCE CALL
The Company has scheduled its quarterly conference call for 4:30 p.m.
Eastern time today. Interested parties can access a live Internet
broadcast at www.cerus.com.
For those unable to listen to the live broadcast, the call will be
temporarily archived.
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‘s products are not yet approved
in the United States. The INTERCEPT red blood cell system is currently
in clinical development.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation.
Forward-Looking Statements
Except for the historical statements contained herein, this press
release contains forward-looking statements concerning the Company’s
prospects and results, including the Company’s expectations regarding
its operating expenses, rate of cash consumption, savings resulting from
implementation of its restructuring plan, sufficiency of cash resources,
market acceptance of its INTERCEPT products, timing of completion of the
Phase I clinical trial for the red blood cell system and management of
its working capital. Because the Company’s forward-looking statements
are subject to risks and uncertainties, there are important factors that
could cause actual results to differ materially from those in the
forward-looking statements. These factors include, without limitation,
risks and uncertainties involving commercial adoption of the INTERCEPT
Blood System, implementation of the Company’s restructuring plan,
adequacy of current cash resources, and the risks and uncertainties
disclosed from time to time in reports filed by the Company with the
SEC, including the Company’s annual report on Form 10-K the fiscal year
ended December 31, 2008, filed with the SEC on March 13, 2009. The
Company disclaims any obligation or undertaking to update or revise any
forward-looking statements contained in this press release.
CERUS CORPORATION |
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION |
(In thousands except per share information) |
|
|
|
| Three Months Ended
March 31, |
| | 2009 |
| 2008 |
|
Revenue
| | | | |
|
Product revenue
| |
$
|
3,085
| | |
$
|
4,852
| |
|
Government grant and cooperative agreements
| |
|
403
|
| |
|
117
|
|
|
Total Revenue
| |
|
3,488
|
| |
|
4,969
|
|
| | | |
|
|
Cost of product revenue
| |
|
2,094
|
| |
|
1,714
|
|
|
Gross profit
| | |
1,394
| | | |
3,255
| |
| | | |
|
|
Operating expenses
| | | | |
|
Research and development
| | |
2,012
| | | |
2,784
| |
|
Selling, general and administrative
| | |
6,101
| | | |
7,101
| |
|
Restructuring
| |
|
712
|
| |
|
--
|
|
|
Total operating expenses
| |
|
8,825
|
| |
|
9,885
|
|
|
Loss from operations
| | |
(7,431
|
)
| | |
(6,630
|
)
|
|
Interest and other income (expense), net
| |
|
34
|
| |
|
690
|
|
| | | |
|
|
Net loss
| |
$
|
(7,397
|
)
| |
$
|
(5,940
|
)
|
| | | |
|
|
Net loss per share – basic and diluted
| |
$
|
(0.23
|
)
| |
$
|
(0.18
|
)
|
| | | |
|
|
Weighted average common shares outstanding used for basic and
diluted loss per share
| | | | |
|
Basic
| | |
32,590
| | | |
32,210
| |
|
Diluted
| | |
32,590
| | | |
32,210
| |
| | | |
|
Cerus Corporation |
Condensed Consolidated Unaudited Balance Sheets |
(In thousands) |
|
|
|
| March 31,
2009 |
| December 31,
2008 |
| | | |
|
|
Cash, cash equivalents, and short-term investments
| |
$
|
15,419
| |
$
|
22,578
|
|
Accounts receivable and other current assets
| | |
7,696
| | |
8,356
|
|
Inventories
| | |
11,105
| | |
11,109
|
|
Property and equipment, net
| | |
1,712
| | |
1,844
|
|
Other assets
| |
|
3,232
| |
|
3,452
|
|
Total Assets
| |
$
|
39,164
| |
$
|
47,339
|
| | | |
|
|
Accounts payable and accrued liabilities
| |
$
|
10,598
| |
$
|
12,453
|
|
Accrued restructuring
| | |
652
| | |
--
|
|
Deferred revenue
| | |
410
| | |
445
|
|
Other long-term liabilities
| |
|
142
| |
|
163
|
|
Total liabilities
| |
|
11,802
| |
|
13,061
|
|
Stockholders’ equity
| |
|
27,362
| |
|
34,278
|
|
Total liabilities and stockholders’ equity
| |
$
|
39,164
| |
$
|
47,339
|
Source: Cerus Corporation
Cerus Corporation
Kevin D. Green, 925-288-6138
Vice President,
Finance & CAO
or
Porter Novelli Life Sciences
Jason
Spark, 619-849-6005