Cerus Corporation (Nasdaq: CERS), a leading developer of systems to inactivate viruses and bacteria in transfused blood components, today announced results for the year ended December 31, 1997.
The company reported revenue of $6.9 million and a net loss of $14.7 million, or $1.73 per share. These results compare with revenue of $3.6 million and a net loss of $10.2 million, or $3.74 per share, for the prior year. The increase in net loss reflects increased expenses relating to the planned expansion of the company's development programs and a contractual payment for development costs of approximately $5.5 million to Baxter Healthcare Corporation in exchange for an increased product revenue share of the company's platelet pathogen inactivation program.
The company also reported its results of operations for the quarter ended December 31, 1997. The company reported revenue of $1.4 million and a net loss of $4.5 million, or $0.50 per share. These results compare with revenue of $0.5 million and a net loss of $3.1 million, or $1.13 per share, for the quarter ended December 31, 1996.
As of December 31, 1997, the company had cash, cash equivalents and short-term investments of approximately $21.6 million compared to $6.0 million at December 31, 1996. This increase is primarily due to an initial public offering of two million shares of common stock at a price of $12.00 per share in January, 1997 and private placements of common stock to Baxter Healthcare Corporation totaling $10.5 million in 1997.
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's platelet pathogen inactivation system is currently in a Phase 2c patient pilot study in the United States and has received approval from regulatory authorities in France, Germany, the Netherlands and the United Kingdom to proceed with Phase 3 trials. The company is seeking approval to conduct Phase 3 studies in Sweden. The company's FFP pathogen inactivation system is currently in a Phase 2 clinical trials and its red blood cell pathogen inactivation system is currently in preclinical toxicology and tolerability studies.
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 | Year Ended | | | Dec. 31, | Dec. 31, | | | 1997 | 1996 | 1997 | 1996 | | Revenue | $ 1,429 | $ 542 | $ 6,851 | $ 3,609 | | Operating expenses: | | | | | | Research and development | 5,394 | 3,160 | 19,569 | 12,080 | | General and administrative | 807 | 580 | 3,163 | 2,200 | | Total operating expenses | 6,201 | 3,740 | 22,732 | 14,280 | | Loss from operations | (4,772) | (3,198) | (15,881) | (10,671) | | Interest income, net | 293 | 108 | 1,217 | 464 | | Net loss | $ (4,479) | $ (3,090) | $ (14,664) | $ (10,207) | | Net loss per share – basic and diluted | $ (0.50) | $ (1.13) | $ (1.73) | $ (3.74) | Shares used in computing
net loss per share | 9,026 | 2,729 | 8,461 | 2,729 |
Condensed Balance Sheets
(in thousands)
| | Dec. 31, 1997 | Dec. 31, 1996 | | | (unaudited) | | | Cash, cash equivalents and short-term investments | $ 21,581 | $ 6,002 | | Other current assets | 4,590 | 532 | | Furniture and equipment, net of depreciation | 1,032 | 1,184 | | Other assets | 112 | 1,094 | | Total assets | $ 27,315 | 8,812 | | | | | | Current liabilities | $ 4,797 | $ 3,881 | | Capital lease obligation, less current portion | 43 | 92 | | Stockholders' equity | 22,475 | 4,839 | | Total liabilities and stockholders' equity | $ 27,315 | $ 8,812 |
|