CONCORD, CALIF., June 30, 2004 – Cerus Corporation (Nasdaq:
CERS) today announced that the company is realigning its operations
to focus more intensively on its program to develop therapeutic
vaccines against cancer and infectious disease. As a result of the realignment, the company will reduce its current
workforce by approximately 35% and cash use for operations going
forward to an annual rate of approximately $12-15 million from
the previously projected $30-35 million. There will be
a one-time restructuring expense of approximately $3 million in
the second quarter. The company's vaccine program, initiated two and a half years
ago, is based on proprietary technology that, in combination with
specific cancer antigens, has demonstrated the potential to induce
potent immune responses against malignant cells. In addition,
the company is applying its technology to develop safer and more
effective vaccines against infectious disease. “We are excited about the potential for the innovative vaccine
program to provide a more effective therapy for a broad range
of cancers. We plan to file at least one IND with the FDA
by the end of 2005,” said Claes Glassell, president and chief
executive officer, Cerus Corporation. “At the same time,
we continue to believe in the value of a proactive approach to
blood safety and plan to maintain a measured investment in INTERCEPT
while the market develops.” The INTERCEPT Blood System is designed to enhance the safety
of the world's blood supply by inactivating viruses, bacteria,
other pathogens and white blood cells in blood components intended
for transfusion. The company plans to continue technical
support of Baxter's commercial efforts for INTERCEPT Platelets
in Europe. The company also intends to work with the U.S.
Food and Drug Administration on advancing the regulatory approval
process. Cerus expects to continue its development activities
in the INTERCEPT Plasma program at a reduced rate, allowing the
company to meet financial objectives while fulfilling critical
program activities. Selected research and development activities
will continue with its red blood cell program. In addition,
the company plans to work with Baxter to pursue commercial opportunities
for the INTERCEPT Blood System in geographical areas outside of
North America and Europe.
In the vaccine program, Cerus has entered into a strategic collaboration
with MedImmune to develop a therapeutic vaccine targeting an antigen
expressed in breast, prostate and colon cancers. The company
has also licensed an antigen from The Johns Hopkins University that
is prevalently expressed in pancreatic and ovarian tumors.
The company intends to continue to partner with companies having
proprietary antigen targets and to pursue its own products. CONFERENCE CALL
The company has scheduled a conference call to discuss
this announcement for 4:30 p.m. EDT today. Interested parties
can access a live Internet broadcast at http://www.cerus.com/pages/IR/wc.html.
For those unable to listen to the live broadcast, the call will
be archived at www.cerus.com. ABOUT CERUS
Cerus Corporation is developing novel technologies to
provide safer and more effective options to patients in areas
with substantial unmet medical needs. The Concord, California-based
company is pursuing a novel therapeutic vaccine platform to harness
the power of the immune system against cancer and infectious disease.
In collaboration with MedImmune, Inc., Cerus is developing
and commercializing a therapeutic vaccine designed to target antigens
expressed in breast, prostate and colon cancer, as well as metastatic
melanoma. Cerus is also collaborating with subsidiaries
of Baxter International Inc. on the INTERCEPT Blood System, designed
to enhance the safety of the world's blood supply by inactivating
viruses, bacteria, other pathogens and white blood cells.
The INTERCEPT Blood System is based on the company's Helinx technology
for controlling biological replication. Helinx is a trademark of Cerus Corporation
Baxter and INTERCEPT Blood are trademarks of Baxter International
Inc. Statements in this news release regarding potential efficacy
and safety of products, further data analyses, potential regulatory
filings, product development and commercial potential 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 activities, uncertainty of the outcome
of further data analyses and of the acceptability of any data
analyses to regulatory authorities, actions by regulatory authorities
at any stage of the development process, additional financing
activities, manufacturing, market acceptance of any products,
competitive conditions, long term growth opportunity of Cerus,
legal proceedings, actions by Baxter and other factors discussed
in the company's most recent filings with the Securities and Exchange
Commission.
### |