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, 1998.
Cerus reported a net loss of $6.1 million, or $0.65 per share, for the third quarter of 1998. These results compare with a net loss of $1.9 million, or $0.21 per share, for the same period in 1997.
The company reported revenue of $300,000 for the third quarter of 1998, compared with $3.3 million for the same period in 1997. Third quarter revenue for the current year was attributable to amounts earned from development and marketing agreements with Baxter Healthcare Corporation and government grants. Third quarter revenue from 1997 included one-time, milestone-based fees and payments from Baxter.
Total operating expenses for the third quarter of 1998 were $6.7 million, an increase of $1.2 million over the same period of 1997. The increase was primarily attributable to expanded development activities relating to the company's pathogen inactivation systems.
"We continue to progress with our clinical program for our platelet and fresh frozen plasma pathogen inactivation systems which are based on our proprietary S-59 compound," said Cerus President and Chief Executive Officer, Stephen Isaacs. "We are also moving ahead with our S-303-based red blood cell pathogen inactivation system which recently received clearance from the FDA to proceed into clinical trials.”
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 and 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 | Nine Months Ended | | | Sept.30 | Sept.30, | | | 1998 | 1997 | 1997 | 1996 | | Revenue | $ 274 | $ 3,267 | $ 2,631 | $ 5,422 | | Operating expenses: | | | | | | Research and development | 5,725 | 4,664 | 23,779 | 14,175 | | General and administrative | 968 | 792 | 3,062 | 2,356 | | Total operating expenses | 6,693 | 5,456 | 26,841 | 16,531 | | Loss from operations | (6,419) | (32,189) | (24,210) | (11,109) | | Interest income, net | 326 | 308 | 889 | 924 | | Net loss | $ (6,093) | $ (1,881) | $ (23,321) | $ (10,185) | | Net loss per share – basic and diluted | $ (0.65) | $ (0.21) | $ (2.51) | $ (1.25) | Shares used in computing
net loss per share - basic and diluted | 9,413 | 8,929 | 9,298 | 8,131 |
Condensed Balance Sheets
(in thousands)
| | Sept. 30, 1998 | Dec. 31, 1997 | | | (unaudited) | | | Cash, cash equivalents and short-term investments | $ 22,975 | $ 21,581 | | Accounts receivable from a related party | 0 | 4,376 | | Other current assets | 240 | 214 | | Furniture and equipment, net of depreciation | 800 | 1,032 | | Other assets | 91 | 112 | | Total assets | $ 24,106 | $ 27,315 | | | | | | Accounts payable to a related party | $ 1,990 | $ 0 | | Other current liabilities | 6, 239 | 4,797 | | Long term payable to a related party | 8,300 | 0 | | Capital lease obligation, less current portion | 16 | 43 | | Redeemable preferred stock | 5,000 | 0 | | Stockholders' equity | 2,561 | 22,475 | | Total liabilities and stockholders' equity | $ 24,106 | $ 27,315 |
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