CONCORD, Calif., May 02, 2006 (BUSINESS WIRE) -- Cerus Corporation (Nasdaq:CERS) today announced results
for the first quarter ended March 31, 2006.
Revenues for the first quarter were $7.0 million, up from $6.4
million for the first quarter of 2005, with higher amounts recognized
in the current period from the amortization of past up-front payments
from BioOne Corporation and MedImmune, Inc., for which revenue
recognition was deferred, and the recognition of product sales of the
INTERCEPT platelet system in Europe subsequent to the February 2006
restructured Baxter agreement offset somewhat by reduced funding in
the current period from the U.S. Armed Forces. Total operating
expenses for the first quarter of 2006 were $10.0 million, up from
$7.5 million for the same period in 2005, due primarily to increased
European commercialization activities, development and regulatory
efforts related to the INTERCEPT red blood cell program, and
preclinical activities associated with our immunotherapy programs.
Included in the $10.0 million of first quarter 2006 operating expenses
are non-cash charges relating to the adoption of FAS123R, of which,
approximately $0.3 million relate to research and development and
approximately $0.4 million relate to selling, general and
administrative.
Net loss for the first quarter of 2006 was $0.9 million, or $0.04
per share, compared to net income of $21.4 million, or $0.92 per
diluted share, for the first quarter of 2005. The net loss in the
current period includes a one-time non-operating gain of $1.8 million
recognized in connection with the restructured agreement with Baxter
announced in February 2006. Net income in the prior year period
includes a one-time non-operating gain of $22.1 million recognized in
connection with the February 2005 restructuring of commercialization
and loan agreements with Baxter.
At March 31, 2006, the company had cash, cash equivalents and
short-term investments of $82.8 million, an increase of $37.0 million
from December 31, 2005, reflecting net proceeds of approximately $42.4
million from a common stock offering completed in March 2006 offset by
cash used in operations during the first quarter.
"Beyond the financial results announced today, we are pleased to
be reporting for the first time INTERCEPT product sales in Europe made
by our sales force since our restructured agreement with Baxter took
effect in February," said Claes Glassell, president and CEO of Cerus
Corporation. "We have made good progress in building a focused
commercial sales and marketing group in Europe and look forward to
continued progress in the coming quarters. The quarter was also
highlighted by the completion of an equity offering in mid-March."
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 www.cerus.com. For those unable to listen to the live
broadcast, the call will be temporarily archived.
ABOUT CERUS
Cerus Corporation is developing and commercializing novel,
proprietary products and technologies within the fields of
immunotherapy and blood safety that are intended to provide safer,
more effective medical options to patients in areas of substantial
unmet medical needs. In the field of immunotherapy, the company is
employing its proprietary attenuated Listeria vaccine platform to
develop a series of novel therapies to treat cancer, and it is
applying its proprietary Killed But Metabolically Active technology
platform in research and development of prophylactic and therapeutic
vaccines for infectious diseases. In the field of blood safety, the
company is developing and commercializing the INTERCEPT Blood System,
which is based on the company's proprietary Helinx technology and is
designed to enhance the safety of donated blood components by
inactivating viruses, bacteria, parasites and other pathogens, as well
as potentially harmful white blood cells.
INTERCEPT, INTERCEPT Blood System and Helinx are trademarks of
Cerus Corporation.
Baxter is trademark of Baxter International Inc.
Statements in this news release regarding statements concerning
efforts to commercialize the INTERCEPT Blood System and the ability to
build an adequate and effective European marketing and sales force 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 related to manufacturing, product demand and market
acceptance and adoption of any products, competitive conditions,
internal and external factors that could impact commercialization,
actions by regulatory authorities and other government authorities,
including the FDA and foreign counterparts, at any stage of the
development, marketing or commercialization process, the determination
of reimbursement rates for the company's products, the ability to
identify, hire and retain qualified sales and marketing personnel, the
initiation, timing and results of clinical trials and other
development activities, the acceptability of any data by regulatory
authorities, technological advances in the medical field, additional
financing activities, and other factors discussed in the company's
filings with the Securities and Exchange Commission. The company does
not undertake any obligation to update any forward-looking statements
as a result of new information, future events, changed assumptions or
otherwise; all forward-looking statements speak only as of the time
when made.
CERUS CORPORATION
SELECTED UNAUDITED FINANCIAL INFORMATION
(In thousands except per share information)
Three Months Ended
March 31,
-----------------------------
2006 2005
------ ------
Revenues
Milestones and development funding $ 3,817 $ 2,933
Government grant and cooperative
agreements 2,701 3,228
Product revenue 479 240
-------------- -------------
Total Revenues 6,997 6,401
Operating expenses
Cost of Product revenue 182 --
Research and development 6,682 5,049
Selling, general and administrative 3,116 2,421
-------------- -------------
Total operating expenses 9,980 7,470
Interest income (expense) and other, net 2,053 22,454
-------------- -------------
Net income (loss) $ (930) $ 21,385
============== =============
Net income (loss) per share:
Basic $ (0.04) $ 0.96
Diluted $ (0.04) $ 0.92
Weighted average common shares
outstanding used for basic and diluted
income (loss) per share
Basic 23,040 22,257
Diluted 23,040 23,285
CERUS CORPORATION
CONDENSED UNAUDITED BALANCE SHEETS
(In thousands except per share information)
March 31, December 31,
2006 2005
-----------------------------
Cash, cash equivalents, and short-term
investments $ 82,829 $ 45,805
Accounts receivable and other current
assets 7,065 5,200
Inventory 2,068 --
Furniture and equipment, net 1,547 1,235
Other assets 6,444 6,420
------------- -------------
Total Assets $ 99,953 $ 58,660
============= =============
Accounts payable and accrued liabilities $ 8,188 $ 7,289
Current loan and interest payable -- 4,826
Deferred gain 5,753 --
Deferred revenues 7,572 11,135
Other current liabilities 99 67
Other long-term liabilities 120 68
------------- -------------
Total liabilities 21,732 $ 23,385
------------- -------------
Stockholders' equity $ 78,221 $ 35,275
------------- -------------
Total liabilities and stockholders'
equity $ 99,953 $ 58,660
============= =============
SOURCE: Cerus Corporation
Cerus Corporation
Ruey-Li Hwang, 925-288-6017
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