CONCORD, Calif., Oct. 8 /PRNewswire/ -- Cerus Corporation (Nasdaq: CERS) today announced that it has received approval from regulatory authorities in Germany to commence a Phase 3 clinical trial for its platelet pathogen inactivation system. The approval triggers an investment in Cerus common stock by its development and marketing partner, Baxter Healthcare Corporation. Baxter will purchase approximately 240,000 shares of Cerus common stock at a premium to market of at least 20 percent. Baxter will also make a $750,000 milestone payment, previously tied to commencement of the trial, based on the approval. Both transactions are expected to be completed in October.

"The approval to begin Phase 3 is a very important milestone for the joint Cerus and Baxter viral inactivation programs," said Cerus President and Chief Executive Officer Stephen Isaacs. "We are excited about this achievement in the platelet program as well as by the progress we are making in our plasma and red cell programs."

The German site is the first of five anticipated European sites to receive approval for the Phase 3 study. Cerus has also submitted applications for conducting the study in France, Sweden, the Netherlands and the United Kingdom. The European study protocols include multiple transfusions of platelet products treated with Cerus' pathogen inactivation system, in thrombocytopenic patients.

Cerus is developing proprietary systems designed to enhance the safety of blood transfusions by inactivating infectious pathogens in blood components used for transfusion (platelets, fresh frozen plasma (FFP), and red blood cells) and by inhibiting the white blood cell activity that is responsible for certain adverse reactions to transfusions. The company is currently analyzing data from the Phase 1 trials of its FFP program. Its red blood cell program is in preclinical toxicology and tolerability studies. The company's platform technology, which inhibits replication of nucleic acid, has additional potential applications in the health care fields beyond pathogen inactivation in blood components.

Cerus Corporation is collaborating with the Fenwal Division of Baxter Healthcare Corporation's Biotech Group to develop, manufacture and market pathogen inactivation systems for blood components used for transfusion. Baxter, a global medical products company, is a leader in technologies related to blood and the circulatory system. The Fenwal Division develops, manufactures and markets products and services for the collection, separation, storage and transfusion of blood and its components.

This news release contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the above forward-looking statements as a result of certain factors, including the timing and content of the response of the European trial site review boards and regulatory authorities, the uncertainty of any trials, modifications of the agreements with Baxter as well as other factors discussed in the company's Prospectus dated January 30, 1997.

SOURCE Cerus Corporation