- Annual Revenues Up 9% and Quarterly Revenues Up 51% from 2008
- Annual Operating Expenses Down 22%
CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ:CERS) announced today financial results for
the fourth quarter and year ended December 31, 2009.
Total revenue for the year ended December 31, 2009, was $18.0 million,
an increase of 9% from $16.5 million for 2008. Product revenue for the
INTERCEPT Blood System increased to $16.8 million during 2009, up 8%
from $15.5 million during 2008 when approximately $1.5 million in
previously deferred product revenue was recognized. Growth in 2009 was
driven by increased penetration in new and existing markets, primarily
France, Belgium and Southern Europe. The Company also recognized $1.2
million in government grant revenue supporting the ongoing development
of the red blood cell system during 2009, slightly more than the $1.0
million recognized during 2008.
Cost of product revenue was $12.6 million for the year ended December
31, 2009, up from $9.7 million for 2008. Gross margins on product sales
were 25% in 2009, down from 38% in 2008. Lower manufacturing volumes
added approximately 15% to the cost of product revenue for 2009.
Although reduced manufacturing volumes temporarily eroded margins, the
Company has been able to tighten inventory levels and conserve cash.
Total operating expenses for 2009 were $29.2 million, down 22% from
$37.4 million in 2008. The decrease in our 2009 operating expenses from
2008 is due to operating under a lower cost structure as a result of
implementing the previously announced restructuring plan. Operating
expenses in 2009 included non-recurring restructuring charges of $0.8
million, non-cash impairment charges of $2.3 million associated with a
write-down of the Company's investment in BioOne Corporation, gains of
$0.8 million associated with the disposition of the Company's investment
in Anza Therapeutics, Inc. and gains of $1.4 million resulting from a
settlement reached with Baxter regarding the 2006 transition of the
commercialization rights associated with the Company's INTERCEPT Blood
System.
Net loss for 2009 was $24.1 million, or $0.69 per share, compared to
$29.2 million, or $0.90 per share in 2008.
Total revenue for the three months ended December 31, 2009, was $5.5
million, up from $3.6 million during the same period in 2008. Fourth
quarter 2009 product revenue was $5.2 million, up 48% from the $3.5
million recognized during the fourth quarter of 2008, driven primarily
by an increase in disposable kit sales. Fourth quarter 2009 product
revenue represented the most successful quarter that the Company has had
since commercializing the INTERCEPT platelet and plasma systems.
Government grant revenue for the fourth quarter of 2009 was $0.2
million, compared to $0.1 million recognized during the same period in
2008.
Cost of product sales was $3.7 million in the fourth quarter of 2009,
compared to $3.0 million during the same period in 2008. Gross margins
from product sales were 29% during the fourth quarter of 2009, compared
to 16% during the same period in 2008.
Total operating expenses for the fourth quarter of 2009 were $6.7
million, down 15% from $7.8 million during the fourth quarter of 2008.
In addition to the non-recurring charges, fourth quarter 2009 operating
expenses included research and development expenses of $1.5 million and
selling, general and administrative expenses of $5.0 million, compared
to research and development expenses of $2.3 million and selling,
general and administrative expenses of $5.6 million in the fourth
quarter of 2008. The decrease in R&D and SG&A operating expenses is due
to the effects of the Company's 2009 restructuring plan.
Net loss for the fourth quarter of 2009 was $4.9 million, compared to a
net loss of $6.5 million for the fourth quarter of 2008. Net loss per
share was $0.13 for the fourth quarter of 2009, compared to a loss of
$0.20 per share for the same period of 2008.
At December 31, 2009, the Company had cash and marketable securities of
$19.9 million. Net cash used during the fourth quarter of 2009 was $2.7
million, consistent with net cash used during the second and third
quarters of 2009. Net cash used during 2009 was $2.6 million, compared
to $34.3 million in 2008.
"We closed the year strong with our best quarter of INTERCEPT revenue
ever, achieving our fourth consecutive year of sales growth," said Claes
Glassell, president and chief executive officer of Cerus Corporation.
Recent Developments:
- Positive outcome from the TESSI study demonstrating that INTERCEPT-treated platelets remain therapeutically effective at seven days of storage, confirming the logistical advantages of INTERCEPT-treated platelets over conventional platelets;
- Successful completion of the Phase I clinical trial of the red blood cell system, which met its primary endpoint; and
- Collaboration agreement for the development of the INTERCEPT red blood cell system with the French National Blood Service, the Etablissement Francais du Sang.
Quarterly Conference Call
The Company will host a conference call and webcast at 4:15 p.m. Eastern
time today to discuss its financial results and provide a general
business overview. To access the live webcast, please visit the Investor
Relations page of the Cerus web site at http://cerus2013.q4web.com.
Alternatively, you may access the live conference call by dialing
877-407-0782 (U.S.) or 201-689-8567 (international).
A replay will be available on the Cerus web site, or by dialing
877-660-6853 (U.S.) or 201-612-7415 (international) and entering account
number 286 and conference ID number 300292. The replay will be available
approximately two hours after the call through March 9, 2010.
ABOUT CERUS
Cerus Corporation is a biomedical products company focused on
commercializing the INTERCEPT Blood System to enhance blood safety. The
INTERCEPT system is designed to reduce the risk of
transfusion-transmitted diseases by inactivating a broad range of
pathogens such as viruses, bacteria and parasites that may be present in
donated blood. The nucleic acid targeting mechanism of action allows
INTERCEPT treatment to inactivate both established transfusion threats,
such as hepatitis, HIV, West Nile virus and bacteria, as well as
emerging pathogens such as influenza, malaria and dengue. Cerus
currently markets and sells the INTERCEPT Blood System for both
platelets and plasma in Europe, Russia, the Middle East and selected
countries in other regions around the world. The INTERCEPT red blood
cell system is in clinical development. See http://www.cerus.com
for more information.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation.
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)
Three Months Ended Twelve Months Ended
December 31, December 31,
2009 2008 2009 2008
Revenue
Product revenue $ 5,228 $ 3,541 $ 16,751 $ 15,518
Government grant and 246 85 1,231 989
cooperative agreements
Total Revenue 5,474 3,626 17,982 16,507
Cost of product revenue 3,724 2,964 12,580 9,668
Gross profit 1,750 662 5,402 6,839
Operating expenses
Research and development 1,505 2,268 6,372 10,205
Selling, general and 5,017 5,557 21,867 27,164
administrative
Restructuring (15 ) -- 841 --
Loss of long-term investments, 1,536 -- 1,536 --
net
Gain on settlement (1,381 ) -- (1,381 ) --
Total operating expenses 6,662 7,825 29,235 37,369
Loss from operations (4,912 ) (7,163 ) (23,833 ) (30,530 )
Interest and other income 23 649 (302 ) 1,349
(expense), net
Net loss $ (4,889 ) $ (6,514 ) $ (24,135 ) $ (29,181 )
Net loss per share - basic and $ (0.13 ) $ (0.20 ) $ (0.69 ) $ (0.90 )
diluted
Weighted average common shares
outstanding used for basic and
diluted loss per share
Basic 38,680 32,540 34,750 32,430
Diluted 38,680 32,540 34,750 32,430
Cerus Corporation
Condensed Consolidated Unaudited Balance Sheets
(In thousands)
December 31, December 31,
2009 2008
Cash, cash equivalents, and short-term investments $ 19,931 $ 22,578
Accounts receivable and other current assets 4,721 8,356
Inventories 7,707 11,109
Property and equipment, net 1,217 1,844
Other assets 915 3,452
Total Assets $ 34,491 $ 47,339
Accounts payable and accrued liabilities $ 9,709 $ 12,453
Deferred revenue 345 445
Warrant liability 2,737 --
Accrued restructuring 113 --
Other current liabilities 9 --
Other long-term liabilities 130 163
Total liabilities 13,043 13,061
Stockholders' equity 21,448 34,278
Total liabilities and stockholders' equity $ 34,491 $ 47,339
Source: Cerus Corporation