CONCORD, Calif.--(BUSINESS WIRE)--Aug. 3, 2006--Cerus Corporation
(NASDAQ:CERS) today announced financial results for the second quarter
ended June 30, 2006. Revenues for the second quarter of 2006 were $6.5 million, up from
$5.5 million for the second quarter of 2005, with higher amounts
attributed to increased revenues from milestone payments previously
received from BioOne, as well as growth of European sales of the
INTERCEPT platelet system, offsetting modest declines in government
grant funding. Total operating expenses for the second quarter of 2006
were $12.4 million, up from $8.5 million for the same period in 2005,
primarily due to increased European commercialization activities,
development and regulatory efforts related to the INTERCEPT red blood
cell system, preclinical and Phase I clinical trial activities
associated with our immunotherapy programs, and beginning in 2006,
recognition of non-cash stock-based compensation expenses recognized
in accordance with FAS123R. Net loss for the second quarter of 2006 was $5.1 million, or $0.18
per share, compared to net loss of $2.8 million, or $0.12 per share,
for the second quarter of 2005. For the six months ended June 30, 2006, total revenues were $13.5
million, compared to $11.9 million for the same period in 2005. Net
loss was $6.0 million, or $0.24 per share, for the six months ended
June 30, 2006, compared to net income of $18.6 million, or $0.80 per
diluted share, for the six months ended June 30, 2005. Net income
during the six months ended June 30, 2005 included a one-time gain of
$22.1 million recognized in February 2005 as a result of a disputed
loan settlement with Baxter Capital. At June 30, 2006, the Company had cash, cash equivalents and
short-term investments of $76.1 million, an increase of $30.3 million
from December 31, 2005, reflecting net proceeds from a March 2006
equity offering of $42.4 million offset by cash used in operations
during the first half, as well as sources and uses of cash related to
Baxter: a one-time disbursement from Baxter largely offset by our
repayment of the Baxter loan. "The results from the second quarter
show good progress in our commercialization efforts of INTERCEPT in
Europe," said Claes Glassell, president and CEO of Cerus Corporation.
"Also we are beginning enrollment in our Phase 1 clinical trial,
CRS-100." 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 blood
safety and immunotherapy that are intended to provide safer, more
effective medical options to patients in areas of substantial unmet
medical needs. 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. 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. 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 enrollment in
clinical trials 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
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
(In thousands except per share information)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2006 2005 2006 2005
------- ------- ------- -------
Revenues
Milestones and development
funding $ 4,204 $ 2,594 $ 8,021 $ 5,527
Government grant and
cooperative agreements 1,480 2,800 4,182 6,028
Product revenue 776 86 1,255 326
------- ------- ------- -------
Total Revenues 6,460 5,480 13,458 11,881
Operating expenses
Cost of Product revenue 281 -- 464 --
Research and development 8,357 5,881 15,038 10,930
Selling, general and
administrative 3,762 2,616 6,878 5,037
------- ------- ------- -------
Total operating expenses 12,400 8,497 22,380 15,967
Interest income and other, net 868 256 2,921 22,710
------- ------- ------- -------
Net income (loss) $(5,072) $(2,761) $(6,001) $18,624
======= ======= ======= =======
Net income (loss) per share:
Basic $ (0.18) $ (0.12) $ (0.24) $ 0.84
Diluted $ (0.18) $ (0.12) $ (0.24) $ 0.80
Weighted average common shares
outstanding used for basic and
diluted income (loss) per share
Basic 27,770 22,321 25,450 22,289
Diluted 27,770 22,321 25,450 23,343
CERUS CORPORATION
CONDENSED UNAUDITED BALANCE SHEETS
(In thousands)
June 30, December 31,
2006 2005
---- ----
Cash, cash equivalents, and
short-term investments $76,124 $45,805
Accounts receivable and other
current assets 5,344 5,200
Inventory 1,896 --
Furniture and equipment, net 1,559 1,235
Other assets 6,439 6,420
-------- --------
Total Assets $91,362 $58,660
======== ========
Accounts payable and accrued liabilities $ 7,815 $ 7,289
Current loan and interest payable -- 4,826
Deferred gain 5,171 --
Deferred revenues 4,107 11,135
Other current liabilities 102 67
Other long-term liabilities 65 68
-------- --------
Total liabilities 17,260 23,385
-------- --------
Stockholders' equity 74,102 35,275
-------- --------
Total liabilities and
stockholders' equity $91,362 $58,660
======== ========
CONTACT: Cerus Corporation
Myesha N. Edwards, 925-288-6017
SOURCE: Cerus Corporation
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