CONCORD, Calif.--(BUSINESS WIRE)--Feb. 23, 2006--Cerus Corporation
(Nasdaq:CERS) today announced results for the fourth quarter and
year-ended December 31, 2005. Revenues for the fourth quarter of 2005 were $5.6 million, up from
$3.0 million for the fourth quarter of 2004, primarily due to 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, as well as from higher funding
from the U.S. Armed Forces. Total operating expenses for the fourth
quarter of 2005 were $9.0 million, up from $7.3 million for the same
period in 2004, due primarily to increased preclinical activities
associated with our immunotherapy programs. Net loss for the fourth quarter of 2005 was $3.9 million, or $0.17
per share, compared to a net loss of $5.4 million, or $0.24 per share,
for the fourth quarter of 2004. The lower net loss in the current
period reflects both increased third-party funding for research and
development programs and a significant reduction in interest expense
as a result of a substantial reduction of an outstanding loan from
Baxter Capital, offset somewhat by increased operating expenses. For the twelve months ended December 31, 2005, total revenues were
$24.4 million, compared to $13.9 million for the same period in 2004.
Net income was $13.1 million, or $0.55 per diluted share for the
twelve months ended December 31, 2005, compared to a net loss of $31.2
million or $1.41 per share for that same period in 2004. Net income
for the twelve-month period in 2005 includes a one-time gain of $22.1
million recognized in February 2005 as a result of the loan
settlement. At December 31, 2005, the company had cash, cash
equivalents and short-term investments of $45.8 million. "We have made important progress over the past year," said Claes
Glassell, president and CEO of Cerus Corporation. "In 2005, we set
very ambitious goals and I'm proud to say we've accomplished them all.
As we move forward in blood safety and immunotherapy, I am confident
our team is well positioned to successfully advance both programs."
Highlights for the year include:
-- Restructuring Baxter collaboration and settling loan dispute.
This agreement resulted in a $22.1 million gain to Cerus and
an additional $13.1 million in Baxter funding for
commercialization of INTERCEPT platelets and plasma in Europe.
-- Entering agreement with BioOne Corporation for
commercialization of INTERCEPT Plasma in Japan and other Asian
territories. Cerus realized upfront payments of $5.0 million
in cash and $5.0 million in BioOne equity, plus potential
future milestones and payments in excess of $23.0 million.
-- Submitting IND application to FDA for CRS-100, a
Listeria-based immunotherapeutic designed to treat patients
with cancer that has metastasized to the liver. Earlier this
month, Cerus received FDA clearance to proceed with its
clinical trial and, subject to requisite study site approvals,
Cerus plans to initiate Phase I in the first half 2006.
-- Submitting CE mark application for European approval of the
INTERCEPT Blood System for plasma.
-- Announcing decision to re-enter Phase I clinical trials for
INTERCEPT red blood cell program. Cerus is targeting
enrollment of first subject mid-year.
-- Publishing of cover story in Nature Medicine describing our
proprietary Killed but Metabolically Active, or KBMA, vaccine
platform. This platform is designed to combine the potency of
live vaccines with the safety of killed vaccines.
-- Funding of consortium led by University of New Mexico for work
on Tularemia. One of the consortium's goals is to develop a
Tularemia vaccine based on our KBMA platform. Cerus will
receive $2.8 million of research funding over three years.
In addition to the 2005 accomplishments, Cerus announced last week
that it gained remaining worldwide commercial rights to the INTERCEPT
Blood System for platelets and plasma from Baxter, excluding certain
Asian countries in which rights have previously been granted to BioOne
Corporation. 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 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 vaccine platform with promising disease antigens.
These products are designed to stimulate innate and adaptive immune
pathways, generating highly specific and highly potent anti-tumor
responses. The Company's KBMA vaccine technology has potential broad
applications against multiple pathogens. Cerus is developing and
marketing 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 both on its own and through alliances.
Cerus' collaborators include MedImmune and investigators at The Johns
Hopkins University for cancer immunotherapy, and BioOne for the
INTERCEPT Blood System. INTERCEPT and INTERCEPT Blood System are trademarks of Cerus
Corporation. Statements in this news release regarding statements concerning
potential efficacy and safety of products, potential regulatory
approvals, clinical trial activities, product development, contractual
payments and equity issuances and commercialization 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 the initiation, timing and results of
clinical trials and other development activities, the acceptability of
any data by regulatory authorities, actions by regulatory authorities
and other government authorities, including the FDA and foreign
counterparts, at any stage of the development or marketing process,
technological advances in the medical field, additional financing
activities, manufacturing, product demand and market acceptance and
adoption of any products, competitive conditions, internal and
external factors that could impact commercialization and other factors
discussed in each company's filings with the Securities and Exchange
Commission. The companies do 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. Actual results or
experience could differ materially from the forward-looking
statements.
CERUS CORPORATION
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
(In thousands except per share information)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ -------------------
2005 2004 2005 2004
-------- -------- --------- ---------
Revenues
Milestones and development
funding $ 2,878 $ 2,226 $11,697 $ 4,187
Government grant and
cooperative agreements 2,642 733 12,189 9,724
Product revenue 90 -- 485 --
-------- -------- --------- ---------
Total Revenues 5,610 2,959 24,371 13,911
Operating expenses
Research and development 6,578 5,073 24,134 27,651
General and administrative 2,380 2,274 9,578 10,225
Restructuring -- -- -- 2,861
-------- -------- --------- ---------
Total operating
expenses 8,958 7,347 33,712 40,737
-------- -------- --------- ---------
Operating income (loss) (3,348) (4,388) (9,341) (26,826)
Interest income (expense) and
other, net (546) (964) 22,405 (4,327)
-------- -------- --------- ---------
Net income (loss) $(3,894) $(5,352) $13,064 $(31,153)
======== ======== ========= =========
Net income (loss) per share:
Basic $ (0.17) $ (0.24) $ 0.58 $ (1.41)
Diluted $ (0.17) $ (0.24) $ 0.55 $ (1.41)
Weighted average common shares
outstanding used for basic
and diluted income (loss)
per share
Basic 22,430 22,211 22,350 22,143
Diluted 22,430 22,211 23,950 22,143
CERUS CORPORATION
CONDENSED UNAUDITED BALANCE SHEETS
(In thousands except per share information)
December 31, December 31,
2005 2004
------------ ------------
Cash, cash equivalents, and short-term
investments $45,805 $ 95,334
Accounts receivable and other current
assets 5,200 4,537
Furniture and equipment, net 1,235 947
Other assets 6,420 1,260
------------ ------------
Total Assets $58,660 $102,078
============ ============
Accounts payable $ 2,092 $ 1,476
Current loan and interest payable 4,826 34,500
Deferred gain on loan settlement -- 22,089
Deferred revenues 11,135 13,217
Other current liabilities 5,264 4,807
Long-term note payable -- 4,500
Other long-term liabilities 68 --
------------ ------------
Total liabilities $23,385 $ 80,589
------------ ------------
Stockholders' equity $35,275 $ 21,489
------------ ------------
Total liabilities and stockholders'
equity $58,660 $102,078
============ ============
CONTACT: Cerus Corporation
Ruey-Li Hwang, 925-288-6017
SOURCE: Cerus Corporation
|