Cerus Corporation (Nasdaq: CERS), a leading developer of systems to inactivate viruses and bacteria in transfused blood components, today announced results for the quarter ended September 30, 1997.
The company reported a net loss of $1.9 million, or $0.21 per share, for the third quarter of 1997. These results compare with a net loss of $3.0 million, or $1.08 per share, for the same period in 1996.
Net revenue for the third quarter of 1997 was $3.3 million, as compared with $0.5 million for the same period in 1996. Revenue was attributable to a milestone payment, license fees and development funding from Baxter Healthcare Corporation, the company's development and marketing collaborator, and government grants.
Total operating expenses for the third quarter of 1997 were $5.5 million, an increase of $2.0 million over the same period of 1996. The increase reflected increased expenses relating to the planned expansion of the company's development programs and a contractual payment for development costs of approximately $1.4 million to Baxter Healthcare Corporation in exchange for an increased product revenue share of the company's platelet pathogen inactivation program.
Cerus Corporation is developing proprietary systems designed to enhance the safety of blood transfusions by inactivating infectious pathogens in blood components used for transfusion (platelets, FFP, and red blood cells) and by inhibiting the white blood cell activity that is responsible for certain adverse reactions to transfusions. The company has received approval from the first of five European sites to commence a Phase 3 study for its platelet program and is currently analyzing the data from its Phase 1 trials for its FFP program. Its red blood cell program is in preclincal 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 regulation by the FDA, the uncertainty of the timing and results of any trials, modifications of the agreements with Baxter and other factors discussed in the company's Prospectus dated January 30, 1997.
Cerus Corporation
Selected Financial Information Condensed Statements of Operations
(in thousands, except per share information)(unaudited) | | Three Months Ended | Nine Months Ended | | | Sept. 30, | Sept. 30, | | | 1997 | 1996 | 1997 | 1996 | | Revenue | $ 3,267 | $ 461 | $ 5,422 | $ 3,067 | | Operating expenses: | | | | | | Research and development | 4,664 | 2,938 | 14,175 | 8,920 | | General and administrative | 792 | 611 | 2,356 | 1,620 | | Total operating expenses | 5,456 | 3,549 | 16,531 | 10,540 | | Loss from operations | (2,189) | (3,088) | (11,109) | (7,473) | | Interest income, net | 308 | 128 | 924 | 356 | | Net loss | $ (1,881) | $ (2,960) | $ (10,185) | $ (7,117) | | Net loss per share | $ (0.21) | $ (1.08) | $ (1.22) | $ (2.61) | Shares used in computing
net loss per share | 8,915 | 2,729 | 8,327 | 2,729 |
Condensed Balance Sheets
(in thousands) | | Sept. 30,1997 | Dec. 31,1996 | | | (unaudited) | | | Cash and cash equivalents | $ 20,116 | $ 6,002 | | Other current assets | 4,195 | 532 | | Furniture and equipment, net of depreciation | 1,118 | 1,184 | | Other assets | 117 | 1,094 | | Total assets | $ 25,546 | 8,812 | | | | Current liabilities | $ 3,625 | $ 3,881 | | Capital lease obligation, less current portion | 56 | 92 | | Stockholders' equity | 21,865 | 4,839 | | Total liabilities and stockholders' equity | $ 25,546 | $ 8,812 |
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