CONCORD, Calif.--(BUSINESS WIRE)--Feb. 3, 2005--Cerus Corporation
(Nasdaq:CERS - News) today announced results for the fourth quarter and year
ended December 31, 2004. Revenue for the fourth quarter of 2004 was $3.0 million, down from
$3.5 million for the fourth quarter of 2003, with increases in
milestone and development funding from partners partially offsetting
decreased funding from the U.S. Armed Forces for blood safety
programs. Total operating expenses for the fourth quarter of 2004 were
$7.3 million, down from $12.5 million for the same period in 2003
primarily due to the effects of the strategic realignment announced in
June and decreased payments to Baxter under the terms of our INTERCEPT
collaboration. Net loss for the fourth quarter of 2004 was $5.4
million, or $0.24 per share, compared to $10.1 million, or $0.46 per
share, for the fourth quarter of 2003. Revenue for the year ended December 31, 2004, was $13.9 million,
up from $9.7 million for 2003, primarily due to increased milestone
and development funding from MedImmune and BioOne. Total operating
expenses for 2004 were $40.7 million, down from $63.5 million for the
prior year. Net loss for 2004 narrowed to $31.2 million, or $1.41 per
share, compared to $58.3 million, or $3.01 per share, for 2003.
At December 31, 2004, the company had cash, cash equivalents and
short-term investments of $95.3 million. The year-end balance sheet
includes the following entries related to the new Baxter agreement and
settlement of the loan dispute: - A current payable of $34.5 million to Baxter
- A $770,000 reserve for other expenses in connection with the
new agreement, included within other current liabilities
- A deferred gain of $22.1 million on the loan settlement, which
will be recognized in the first quarter of 2005
- Long-term debt of $4.5 million, representing the note due to
Baxter in December 2006, which accrues interest at 8%
"Our most recent financial results reflect the effects of
significant changes to our operations and long-term strategy
implemented in June 2004," said Claes Glassell, President and CEO of
Cerus. "With a disciplined approach to funding INTERCEPT Blood System
development and judicious investment in our cancer immunotherapy
programs, we believe our resources are now adequate to fund Cerus
through to key clinical and regulatory milestones." In addition to restructuring the collaboration with Baxter related
to the INTERCEPT Blood System and resolution of the loan dispute,
recent highlights for Cerus include: - Completion of an agreement with BioOne Corporation for
INTERCEPT Platelet commercialization in Japan and other Asian
territories, including a $7.5 million payment to Cerus
- Signing of a letter of intent with BioOne for INTERCEPT Plasma
in Japan and other Asian territories, including a $3.0 million
payment to Cerus
- Presentation of eight abstracts at the December 2004 American
Society of Hematology meeting, including INTERCEPT Blood
System and Listeria immunotherapy program data
- Continued preclinical progress in cancer immunotherapy,
including initiation of a new Listeria development program
- Acquisition of additional intellectual property rights to
Mesothelin, a cancer antigen, from Chugai Pharmaceutical
Quarterly Conference Call The company has re-scheduled its quarterly conference call for
10:00 a.m. Eastern time today. The call will include discussion of the
new Baxter agreement in addition to financial results. The 10:00 a.m.
call replaces the previously announced conference call originally
scheduled for 4:30 p.m. 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 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 MedImmune, BioOne
Corporation and subsidiaries of Baxter International Inc. 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 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. Financial Statements to Follow CERUS CORPORATION
SELECTED UNAUDITED FINANCIAL INFORMATION
Condensed Statements of Operations Three Months Twelve Months
(in thousands, except per share Ended Ended
information) December 31, December 31,
2004 2003 2004 2003
-------- -------- -------- --------
Revenue $2,959 $3,525 $13,911 $9,665
Operating expenses:
Research and development 5,073 9,637 27,651 52,484
General and administrative 2,274 2,911 10,225 11,016
Restructuring - - 2,861 -
-------- -------- -------- --------
Total operating expenses 7,347 12,548 40,737 63,500
-------- -------- -------- --------
Loss from operations (4,388) (9,023) (26,826) (53,835)
Interest and other income
(expense), net (964) (1,105) (4,327) (4,432)
-------- -------- -------- --------
Net loss (5,352) (10,128) (31,153) (58,267)
======== ======== ======== ========
Net loss per share -- basic and
diluted ($0.24) ($0.46) ($1.41) ($3.01)
======== ======== ======== ========
Shares used in computing net loss
per share -- basic and diluted 22,211 22,060 22,143 19,367
======== ======== ======== ========
Condensed Balance Sheets December December
(in thousands) 31, 31,
2004 2003
--------- ---------
Cash, cash equivalents and short-term investments $95,334 $110,010
Accounts receivable from a related party 4 8
Accounts receivable and other current assets 4,533 5,736
Furniture and equipment, net 947 2,553
Other assets 1,260 156
--------- ---------
Total assets $102,078 $118,463
========= =========
Accounts payable to a related party $196 $3,156
Current payable to a related party 34,500 55,834
Deferred gain on loan settlement 22,089 -
Other current liabilities 19,304 6,945
Long-term debt, payable to a related party 4,500 -
Stockholders' equity 21,489 52,528
--------- ---------
Total liabilities and stockholders' equity $102,078 $118,463
========= =========
Contact: Cerus Corporation
William J. Dawson, 925-288-6053
(Vice President, Finance & CFO)
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