CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ: CERS) today announced financial results for
the second quarter ended June 30, 2011.
“Our Q2 results demonstrate continuing execution toward our guidance of
20% total revenue growth for 2011. We also recently engaged new
distributors in Israel, South Africa, Mexico and Brazil to strengthen
our foundation for future growth,” said William “Obi” Greenman,
president and chief executive officer of Cerus Corporation. “Further,
we’re finalizing preparations for our European Phase 3 red cell trial
and preparing for FDA discussions this fall regarding all three
INTERCEPT programs.”
Revenue for the second quarter of 2011 was $6.8 million, up from $5.9
million recognized during the second quarter of 2010. Total revenue for
the first six months of 2011 was $13.4 million, up from $11.7 million
recognized during the first six months of 2010. The increase in revenue
in 2011 from 2010 was due to growth from product sales of the INTERCEPT
Blood System. Product revenue for the INTERCEPT Blood System was $6.8
million during the second quarter of 2011, representing an increase of
$1.1 million, or 19%, from $5.7 million during the second quarter of
2010. Product revenue for the first six months of 2011 was $12.9
million, up from $11.2 million during the first six months of 2010.
There was no government grant revenue recognized during the second
quarter of 2011 compared to $0.2 million recognized during the same
period in 2010. Government grant revenue for the first six months of
2011 was $0.4 million, down slightly from $0.5 million in government
grant revenue recognized during the first six months of 2010.
Gross margins for the second quarter of 2011 were 41% compared to gross
margins of 51% for the second quarter of 2010. Gross margins for the
first six months of 2011 were 44% compared to 48% for the same period in
2010. The decline in 2011 gross margins is attributable to the mix of
products sold over the two periods, lower per-unit costs of the
INTERCEPT Blood System product sold in 2010 compared to 2011 and the
absence of government grant revenue during the second quarter of 2011
compared to the same period in 2010.
Total operating expenses for the second quarter of 2011 were $8.3
million, compared to $6.7 million for the same period in 2010. Operating
expenses for the first six months of 2011 were $15.6 million, compared
to $13.5 million during the same period in 2010. The increase in
operating expenses was primarily due to increased research and
development costs associated with the INTERCEPT Blood System for red
blood cells incurred throughout the first half of 2011 compared to the
same period in 2010, and to increased selling, general and
administrative costs.
Net loss for the second quarter of 2011 was $6.3 million, or $0.13 per
share, compared to a net loss of $5.6 million, or $0.14 per share, for
the second quarter of 2010. Net loss for the first six months of 2011
was $11.3 million, or $0.24 per share, compared to a net loss of $10.8
million, or $0.28 per share, for the same period in 2010.
At June 30, 2011, the Company had cash, cash equivalents and short-term
investments of $17.8 million, down from $30.0 million at December 31,
2010 and $24.4 million at March 31, 2011. Throughout the first half of
2011, the Company made significant investments in inventory to meet
future customer demand. The Company continues to maintain the
availability of an additional $5 million under its growth capital credit
facility which may be drawn down at the Company’s option before
September 30, 2011.
RECENT HIGHLIGHTS:
-
Product sales grew by 19% from Q2 2010 levels;
-
Entered distribution agreement with Ilex Biotech Ltd. for Israel
and South Africa;
-
Entered distribution agreement with Grifols S.A. for Mexico;
-
Entered distribution agreement with Comércio Exportação e
Importação de Materiais Médicos Ltda (CEI) for Brazil.
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
866-235-9006 (U.S.) or 631-291-4549 (international).
A replay will be available on the Cerus website, or by dialing
800-642-1687 (U.S.) or 706-645-9291 (international) and entering
conference ID number 45246093. The replay will be available
approximately three hours after the call through August 10, 2011.
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 enables
INTERCEPT treatment to inactivate established transfusion threats, such
as hepatitis B and C, HIV, West Nile virus and bacteria, and is designed
to inactivate emerging pathogens such as influenza, malaria and dengue.
Cerus currently markets and sells the INTERCEPT Blood System for both
platelets and plasma in Europe, the Commonwealth of Independent States,
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.
Forward-Looking Statements
Except for the historical statements contained herein, this press
release contains forward-looking statements concerning Cerus’ products,
prospects and results, including Cerus’ expectations regarding the
expansion of Cerus’ business, planned clinical trials, the availability
of additional capital and approval of Cerus’ products in the United
States. Because Cerus’ 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 the risks and uncertainties disclosed
from time to time in reports filed by Cerus with the SEC, including most
recently Cerus’ Form 10-Q for the quarter ended March 31, 2011 filed
with the SEC on May 6, 2011. Cerus disclaims any obligation or
undertaking to update or revise any forward-looking statements contained
in this press release.
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
|
2011
|
|
|
|
2010
|
|
|
|
2011
|
|
|
|
2010
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
Product revenue
|
$
|
6,753
|
|
|
$
|
5,690
|
|
|
$
|
12,936
|
|
|
$
|
11,190
|
|
|
Government grant and cooperative agreements
|
|
--
|
|
|
|
245
|
|
|
|
436
|
|
|
|
467
|
|
|
Total Revenue
|
|
6,753
|
|
|
|
5,935
|
|
|
|
13,372
|
|
|
|
11,657
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product revenue
|
|
3,978
|
|
|
|
2,934
|
|
|
|
7,423
|
|
|
|
6,092
|
|
|
Gross profit
|
|
2,775
|
|
|
|
3,001
|
|
|
|
5,949
|
|
|
|
5,565
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Research and development
|
|
1,994
|
|
|
|
1,244
|
|
|
|
3,802
|
|
|
|
2,494
|
|
|
Selling, general and administrative
|
|
6,207
|
|
|
|
5,304
|
|
|
|
11,735
|
|
|
|
10,574
|
|
|
Acquisition-related costs, net
|
|
--
|
|
|
|
132
|
|
|
|
--
|
|
|
|
383
|
|
|
Amortization of intangible assets
|
|
51
|
|
|
|
--
|
|
|
|
101
|
|
|
|
--
|
|
|
Total operating expenses
|
|
8,252
|
|
|
|
6,680
|
|
|
|
15,638
|
|
|
|
13,451
|
|
|
Loss from operations
|
|
(5,477
|
)
|
|
|
(3,679
|
)
|
|
|
(9,689
|
)
|
|
|
(7,886
|
)
|
|
Other expense, net
|
|
(836
|
)
|
|
|
(1,880
|
)
|
|
|
(1,634
|
)
|
|
|
(2,946
|
)
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$
|
(6,313
|
)
|
|
$
|
(5,559
|
)
|
|
$
|
(11,323
|
)
|
|
$
|
(10,832
|
)
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share – basic and diluted
|
$
|
(0.13
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.24
|
)
|
|
$
|
(0.28
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding used for basic and
diluted loss per share
|
|
47,620
|
|
|
|
38,940
|
|
|
|
47,530
|
|
|
|
38,880
|
|
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2011
|
|
December 31,
2010
|
|
|
|
|
|
|
|
|
Cash, cash equivalents, and short-term investments
|
|
|
$
|
17,780
|
|
$
|
30,009
|
|
Accounts receivable and other current assets
|
|
|
|
5,284
|
|
|
5,789
|
|
Inventories
|
|
|
|
9,968
|
|
|
5,957
|
|
Property and equipment, net
|
|
|
|
2,141
|
|
|
2,390
|
|
Intangible assets and goodwill
|
|
|
|
3,165
|
|
|
3,266
|
|
Other assets
|
|
|
|
762
|
|
|
756
|
|
Total assets
|
|
|
$
|
39,100
|
|
$
|
48,167
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
10,027
|
|
|
9,243
|
|
Deferred revenue
|
|
|
|
123
|
|
|
248
|
|
Long-term debt, current
|
|
|
|
1,876
|
|
|
1,747
|
|
Warrant liability
|
|
|
|
10,082
|
|
|
8,465
|
|
Long-term debt, non-current
|
|
|
|
2,159
|
|
|
3,131
|
|
Other long-term liabilities
|
|
|
|
1,588
|
|
|
1,601
|
|
Total liabilities
|
|
|
|
25,855
|
|
|
24,435
|
|
Stockholders’ equity
|
|
|
|
13,245
|
|
|
23,732
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
39,100
|
|
$
|
48,167
|
Source: Cerus Corporation