New loan provides additional capital to support growth initiatives
CONCORD, Calif.--(BUSINESS WIRE)--
Cerus Corporation (NASDAQ:CERS) announced today that it has entered into
a $40 million amended growth capital credit facility with Oxford Finance
LLC, a specialty finance firm that provides senior debt to life sciences
and healthcare services companies worldwide. Under the amended facility,
Cerus received an immediate $30 million loan at closing on July 31, 2017
and has the option to draw another $10 million subject to achieving a
specified revenue milestone.
“Oxford continues to be an invaluable partner. Their appreciation of our
business opportunity and shared belief in our mission to establish
INTERCEPT as the standard of care for transfused blood components
globally strengthens our relationship,” said Kevin D. Green, vice
president, finance and chief financial officer of Cerus Corporation.
“The non-dilutive capital and potential access to additional proceeds
provides us with financial flexibility to help us execute on our
commercial growth strategy, as well as to support key clinical programs.”
“A portion of the proceeds from the initial $30 million loan were used
to repay the outstanding term loans of approximately $17.6 million
provided under the original agreement with Oxford. The amended facility
provides Cerus with not only additional capital but also deferred
amortization for 18 to 24 months,” continued Green.
“We are pleased to extend our collaboration with Cerus in support of its
commercial growth initiatives,” said Christopher A. Herr, senior
managing director at Oxford Finance. “Cerus’ commitment to improving
patient care, its seasoned management team, and proprietary technology
provides us with an attractive lending opportunity.”
ABOUT CERUS
Cerus Corporation is a biomedical products company focused in the field
of blood transfusion safety. The INTERCEPT Blood System is designed to
reduce the risk of transfusion-transmitted infections 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 of the INTERCEPT treatment is designed to inactivate established
transfusion threats, such as Hepatitis B and C, HIV, West Nile Virus and
bacteria, as well as emerging pathogens such as chikungunya, malaria and
dengue. Cerus currently markets and sells the INTERCEPT Blood System for
both platelets and plasma in the United States, 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 www.cerus.com
for information about Cerus.
Forward-Looking Statements
Except for the historical statements contained herein, this press
release contains forward-looking statements concerning Cerus’
expectations, opportunities and prospects, including statements
concerning the availability of the second term loan of $10 million
provided for under the amended credit facility with Oxford, Cerus’
mission to establish INTERCEPT as the standard of care for transfused
blood components globally, Cerus’ execution on its commercial growth
strategy, and other statements that are not historical facts. Actual
results could differ materially from these forward-looking statements as
a result of certain factors, including, without limitation: risks
associated with the satisfaction of the conditions to the funding of the
second term loan of $10 million provided for under the amended credit
facility with Oxford and Cerus’ ability to maintain (and otherwise
comply with the covenants in) the amended credit facility with Oxford;
risks associated with Cerus’ ability to meet its debt service
obligations and its need for additional funding; risks associated with
the commercialization and market acceptance of, and customer demand for,
the INTERCEPT Blood System; risks associated with Cerus’ lack of
commercialization experience in the United States and its ability to
develop and maintain an effective and qualified U.S.-based commercial
organization, as well as the resulting uncertainty of its ability to
achieve market acceptance of and otherwise successfully commercialize
the INTERCEPT Blood System for platelets and plasma in the United
States; risks related to Cerus’ ability to commercialize the INTERCEPT
Blood System in the United States without infringing on the intellectual
property rights of others; risks related to Cerus’ ability to
demonstrate to the transfusion medicine community and other health care
constituencies that pathogen reduction and the INTERCEPT Blood System is
safe, effective and economical; the uncertain and time-consuming
development and regulatory process, including the risks (a)
that Cerus may be unable to comply with the FDA’s post-approval
requirements for the INTERCEPT platelet and plasma systems, including by
successfully completing required post-approval studies, which could
result in a loss of U.S. marketing approval for the INTERCEPT platelet
and/or plasma systems, (b) related to Cerus’ ability to expand the label
claims and product configurations for the INTERCEPT platelet and plasma
systems in the United States, which will require additional regulatory
approvals and (c) that Cerus may be unable to obtain any regulatory
approvals of the INTERCEPT red blood cell system in a timely manner or
at all; risks related to adverse market and economic conditions,
including continued or more severe adverse fluctuations in foreign
exchange rates and/or weakening economic conditions in the markets
where Cerus sells its products; Cerus’ reliance on third parties to
market, sell, distribute and maintain its products; Cerus’ ability to
maintain an effective manufacturing supply chain, including the ability
of its manufacturers to comply with extensive FDA and foreign regulatory
agency requirements; the impact of legislative or regulatory healthcare
reforms that may make it more difficult and costly for Cerus to produce,
market and distribute its products; risks related to future
opportunities and plans, including the uncertainty of future revenues
and other financial performance and results, as well as other risks
detailed in Cerus’ filings with the Securities and Exchange Commission,
including Cerus’ Quarterly Report on Form 10-Q for the quarter
ended March 31, 2017, filed with the SEC on May 4, 2017. Cerus disclaims
any obligation or undertaking to update or revise any forward-looking
statements contained in this press release.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170802005409/en/
Source: Cerus Corporation