CONCORD, Calif., July 22 /PRNewswire/ -- 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 June 30, 1998.

Cerus reported net revenue of $700,000 for the second quarter of 1998, compared with $1.1 million for the same period in 1997. Revenue was attributable to amounts earned from development and marketing agreements with Baxter Healthcare Corporation and government grants.

Total operating expenses for the second quarter of 1998 were $14.7 million, an increase of $8.9 million over the same period of 1997. The increase was primarily attributable to a one-time expense of $8.3 million related to the company's purchase of an increased share of future platelet pathogen inactivation system product revenue.

The company reported a net loss of $13.7 million, or $1.48 per share, for the second quarter of 1998. These results compare with a net loss of $4.2 million, or $0.48 per share, for the same period in 1997.

"The company continues to build momentum," said Cerus President and Chief Executive Officer, Stephen Isaacs. "We have recently achieved a number of important milestones in the development of systems to enhance the safety of the blood supply. We commenced a European Phase 3 patient trial for our platelet system based on our proprietary S-59 compound and we recently received clearance to begin human clinical trials for our red blood cell system based on our proprietary S-303 compound. Cerus' transfusion plasma program, also based on S-59, has progressed in a Phase 2 clinical study in healthy subjects."

Cerus Corporation is developing systems designed to enhance the safety of blood transfusions by inactivating infectious pathogens in blood components (platelets, plasma and red blood cells used for transfusion) and by inactivating white blood cells, which are responsible for a variety of adverse transfusion reactions. The company's platform technology, which prevents viral, bacterial and cellular replication, has additional potential applications in the health care field beyond pathogen inactivation in blood components.

Cerus Corporation is collaborating with the Fenwal Division of Baxter Healthcare Corporation to develop, manufacture and market pathogen inactivation systems for blood components used for transfusion. Baxter, a global medical products and services company, focuses on critical therapies for life-threatening conditions. Baxter 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 uncertainty of the timing and results of any trials, regulation by the FDA, modifications of the agreements with Baxter, the uncertainty of market acceptance of any products, competitive conditions, the uncertainty of future financing and other factors discussed in the company's 1997 Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission.

 
  CERUS CORPORATION 
SELECTED FINANCIAL INFORMATION 
  CONDENSED STATEMENTS OF OPERATIONS 
 (in thousands, except per share information) 
 (unaudited) 
  Three Months Ended  Six Months Ended 
   June 30,   June 30, 
  1998  1997 1998  1997 
Revenue  $745  $1,123  $2,357 $2,155 

Operating expenses:

 
 Research and 
  development  13,598   4,923  18,054  9,511 
 General and 
  administrative1,073 814   2,094  1,564 
  Total operating 
   expenses14,671   5,737  20,148 11,075 
  Loss from 
   operations (13,926) (4,614)(17,791)(8,920) 
Interest income, net  270 371 563616 
Net loss ($13,656)($4,243)   ($17,228)   ($8,304) 

Net loss per share -

 
 basic and diluted ($1.48) ($0.48) ($1.86)($1.07) 

Shares used in computing

net loss per share -

 
 basic and diluted  9,246   8,895   9,239  7,734 
   CONDENSED BALANCE SHEETS 
(in thousands) 
   June 30,December 31, 
 1998 1997 
  (unaudited) 

Cash, cash equivalents and

 
 short-term investments $18,092  $21,581 

Accounts receivable

 
 from a related party 54,376 
Other current assets303  214 

Furniture and equipment,

 
 net of depreciation8711,032 
Other assets 91  112 
 Total assets   $19,362  $27,315 
Current liabilities  $5,520   $4,797 
Long term payable to a related party  8,3000 

Capital lease obligation,

 
 less current portion21   43 
Stockholders' equity  5,521   22,475 
 Total liabilities & 
  stockholders' equity  $19,362  $27,315