Business Editors/Health & Medical Writers
CONCORD, Calif.--(BUSINESS WIRE)--Oct. 31, 2002
Cerus Corporation (Nasdaq:CERS) today announced results for the third quarter ended September 30, 2002.
The net loss for the third quarter was $16.6 million, or $1.05 per share, compared to a net loss of $12.7 million, or $0.81 per share, for the third quarter of 2001. The increased net loss for the quarter was primarily due to expanded research and development activities in support of the INTERCEPT Blood System. Revenue from development agreements and government grants was $0.7 million, compared to $0.5 million for the third quarter of 2001. During the quarter, $5.0 million of Series A convertible preferred stock held by Baxter Healthcare Corporation was converted to common stock. At September 30, 2002, the company had cash, cash equivalents and short-term investments of $81.8 million.
In a separate press release earlier today, the company announced a commitment letter from a subsidiary of Baxter International, Inc. to provide Cerus with a $50 million loan.
"We look forward to a successful launch and roll-out of the INTERCEPT Blood System for platelets in Europe, marking our transition from a strictly research and development company to an enterprise generating product revenue," said Stephen Isaacs, president and chief executive officer of Cerus. "In addition, we are pleased to be in a position to strengthen our cash balance through the loan commitment from Baxter, and we appreciate the strong show of confidence by our partner in the success of INTERCEPT."
Recent Cerus Corporation highlights include:
-- INTERCEPT Blood Systems: Presented data at the American Association of Blood Banks meeting that demonstrated robust inactivation of the West Nile virus with Cerus' amotosalen and S-303 Helinx compounds;
-- INTERCEPT Blood System for platelets: Received final European and Canadian regulatory approval of the system for buffy coat platelets;
-- INTERCEPT Blood System for red blood cells: Continued enrollment and transfusion of patients in two Phase III clinical trials for acute and chronic transfusion support; and
-- Cooperative Agreements with the U.S. Armed Forces: Received $6.5 million award in expanded collaboration with the U.S. Armed Forces.
Cerus and Baxter Healthcare Corporation are collaborating on development of the INTERCEPT Blood System to enhance the safety of blood transfusions. A CE Mark for the INTERCEPT Blood System for platelets has been received. The companies have begun the regulatory submission process to obtain approval in the United States. The companies are also in late stage development of the INTERCEPT Blood System for plasma. In addition, the companies are conducting Phase III clinical trials for INTERCEPT Red Blood Cells.
QUARTERLY CONFERENCE CALL
The company has scheduled its quarterly conference call for 4:30 p.m. EST today. Interested parties can access a live Internet broadcast at http://www.firstcallevents.com/service/ajwz367347493gf12.html. For those unable to listen to the live broadcast, the call will be archived for 72 hours at www.cerus.com.
ABOUT CERUS
Cerus Corporation is building on its leading position in the biopharmaceutical industry by developing medical systems and therapeutics to provide safer and more effective options to patients. The company is developing products based on its proprietary Helinx(R) technology for controlling biological replication. Cerus' most advanced programs are focused on systems to enhance the safety of the world's blood supply. The INTERCEPT Blood System, based on the company's Helinx technology, is designed to inactivate viruses, bacteria, other pathogens and white blood cells. The Concord, California-based company also is pursuing therapeutic applications of Helinx technology to treat and prevent serious diseases.
Helinx is a U.S. registered trademark of Cerus Corporation. INTERCEPT Blood System is a trademark of Baxter International, Inc. (NYSE:BAX).
Statements in this news release, including those regarding clinical trials, regulatory filings and approvals, product development, commercial potential and potential revenue, are 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 risks and uncertainty of the timing and results of clinical trials and other development and commercialization activities, actions by regulatory authorities at any stage of the development process, additional financing activities, manufacturing, market acceptance of any products, competitive conditions and other factors discussed in the company's most recent filings with the Securities and Exchange Commission. Cerus does not undertake any obligation to update forward-looking statements.
CERUS CORPORATION
SELECTED UNAUDITED FINANCIAL INFORMATION
Condensed Statements of Operations
(in thousands, except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
--------- --------- --------- ---------
Revenue $730 $517 $6,882 $3,520
Operating expenses:
Research and development 14,881 12,194 41,286 35,598
General and administrative 2,925 2,347 8,751 7,384
--------- --------- --------- ---------
Total operating expenses 17,806 14,541 50,037 42,982
--------- --------- --------- ---------
Loss from operations (17,076) (14,024) (43,155) (39,462)
Interest income, net 485 1,298 1,733 3,696
--------- --------- --------- ---------
Loss before income taxes (16,591) (12,726) (41,422) (35,766)
Provision for income taxes -- -- -- (100)
--------- --------- --------- ---------
Net loss ($16,591) ($12,726) ($41,422) ($35,866)
========= ========= ========= =========
Net loss per share - basic and
diluted ($1.05) ($0.81) ($2.62) ($2.41)
========= ========= ========= =========
Shares used in computing net
loss per share - basic and
diluted 15,874 15,711 15,802 14,898
========= ========= ========= =========
Condensed Balance Sheets September December
(in thousands) 30, 31,
2002 2001
-------- ---------
Cash, cash equivalents and short-term investments $81,795 $123,461
Accounts receivable from related parties 55 26
Other current assets 2,129 1,573
Furniture and equipment, net 6,164 3,012
Other assets 153 188
-------- ---------
Total assets $90,296 $128,260
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Accounts payable to a related party $8,897 $5,029
Other current liabilities 9,454 11,425
Capital lease obligation, less current portion 25 51
Redeemable convertible preferred stock -- 5,000
Stockholders' equity 71,920 106,755
-------- ---------
Total liabilities and stockholders' equity $90,296 $128,260
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