CONCORD, Calif.--(BUSINESS WIRE)--May 3, 2005--Cerus Corporation
(Nasdaq:CERS) today announced results for the first quarter ended
March 31, 2005. Revenue for the first quarter of 2005 was $6.4 million, up from
$3.6 million for the first quarter of 2004, due to increases in
funding for immunotherapy research and development from the U.S. Armed
Forces and amounts recognized in the current year from deferred
upfront payments that were received from partners in the second, third
and fourth quarters of 2004. Total operating expenses for the first
quarter of 2005 were $7.5 million, down from $11.7 million for the
same period in 2004, due primarily to the effects of the strategic
realignment implemented in June 2004. Loss from operations for the first quarter of 2005 narrowed to
$1.1 million from $8.1 million for the first quarter of 2005 as a
result of both increased funding for research and development programs
and reduced operating expenses. As compared to the immediately
preceding quarter, operating loss declined from $4.4 million in the
fourth quarter of 2004. Net income for the first quarter of 2005 was $21.4 million, or
$0.92 per diluted share, compared to a loss of $9.2 million, or $0.42
per share, for the first quarter of 2004. Net income in the current
period includes a one-time non-operating gain of $22.1 million
recognized in connection with the restructured commercialization and
loan agreements with Baxter announced in February 2005. At March 31, 2005, the company had cash, cash equivalents and
short-term investments of $55.9 million, down from $95.3 million at
year-end, reflecting the payment of $34.5 million to Baxter in
connection with the loan settlement and cash consumed in operations
during the first quarter. "The results for the first quarter were dominated by the $22.1
million non-operating gain resulting from the settlement of our loan
dispute with Baxter," said Claes Glassell, president and CEO of Cerus.
"Our cash balance at the end of March reflected not only the payment
of $34.5 million to Baxter in February, but also the use of $4.7
million in operations, of which $2.3 million related to bonuses earned
based on achievement of last year's corporate objectives and annual
insurance premiums that were paid during the quarter. We are
maintaining our goal of ending the year with in excess of $45 million
in cash." QUARTERLY CONFERENCE CALL The company has scheduled its quarterly conference call for 4:30
p.m. Eastern time today. Interested parties can access a live Internet
broadcast at http://www.cerus.com. For those unable to listen to the
live broadcast, the call will be temporarily archived. ABOUT CERUS Cerus Corporation is developing novel products for cancer,
infectious disease and blood safety based on multiple, innovative
technology platforms. The company is building a pipeline of next
generation cancer immunotherapies by combining its proprietary
attenuated Listeria vector platform with promising disease antigens.
These products are designed to stimulate innate and T cell immune
pathways, generating highly potent anti-tumor responses. Cerus is
applying its Helinx technology to develop the INTERCEPT Blood System,
which is designed to enhance the safety of blood components through
pathogen inactivation. The company's strategy is to leverage the broad
potential of its technologies and products through alliances. Cerus'
partners to date include MedImmune and Johns Hopkins University for
cancer immunotherapy, and Baxter International and BioOne for the
INTERCEPT Blood System. 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 of
products, product development and commercial potential, the
availability of cash resources to fund operating expenses and capital
needs and the company's relationship with its partners 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
uncertainties inherent in developing biotechnology products based on
new technologies, the timing and results of our clinical trials and
other development activities, market acceptance of our products,
actions by regulatory authorities at any stage of the development
process, the availability of governmental or third party reimbursement
for the use of our products, the size of the markets for our products,
our reliance on our relationship with Baxter, competitive conditions,
manufacturing capabilities, our successful completion of our product
components' commercial design, our ability to demonstrate a sufficient
shelf-life of our product components, development and testing of
additional configurations of our products, product liability, our
limited operating history, additional financing activities, protection
of our intellectual property rights, volatility in our stock price,
legal proceedings, on-going compliance with the requirements of the
Sarbanes-Oxley Act of 2002 and other factors discussed in the
company's Form 10-K/A for fiscal 2004, as well as in other reports
subsequently filed from time to time with the Securities and Exchange
Commission. The Company assumes no obligation to update any
forward-looking statements.
CERUS CORPORATION
SELECTED UNAUDITED FINANCIAL INFORMATION
Condensed Statements of Operations Three Months Ended
(in thousands, except per share information) March 31,
2005 2004
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Revenue $6,401 $3,647
Operating expenses:
Research and development 5,049 8,668
General and administrative 2,421 3,043
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Total operating expenses 7,470 11,711
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Loss from operations (1,069) (8,064)
Gain on loan settlement 22,089 -
Interest income (expense), net 364 (1,130)
------------ ------------
Net income (loss) $21,385 $(9,194)
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Net income (loss) per share - basic $0.96 $(0.42)
============ ============
Net income (loss) per share - diluted $0.92 $(0.42)
============ ============
Shares used in computing
net income (loss) per share - basic 22,257 22,084
============ ============
Shares used in computing
net income (loss) per share - diluted 23,285 22,084
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Condensed Balance Sheets March 31, December 31,
(in thousands) 2005 2004
------------ ------------
Cash, cash equivalents and short-term
investments $55,858 $95,334
Accounts receivable from a related party 47 4
Accounts receivable and other current assets 4,460 4,533
Furniture and equipment, net 953 947
Other assets 1,260 1,260
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Total assets $62,578 $102,078
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Accounts payable and other current
liabilities $4,686 $6,087
Accounts payable to a related party - 196
Current payable to a related party - 34,500
Deferred gain on loan settlement - 22,089
Deferred revenue 10,469 13,217
Long-term debt and accrued interest,
payable to a related party 4,557 4,500
Stockholders' equity 42,866 21,489
------------ ------------
Total liabilities and stockholders' equity $62,578 $102,078
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CONTACT: Cerus Corporation
William J. Dawson, 925-288-6053
SOURCE: Cerus Corporation
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