CONCORD, Calif.--(BUSINESS WIRE)--Oct. 31, 2006--Cerus Corporation
(NASDAQ:CERS) today announced financial results for the third quarter
ended September 30, 2006. Revenues for the third quarter of 2006 were $8.0 million, up from
$6.9 million for the third quarter of 2005, with higher amounts
attributed to recognition of revenues under an agreement with the
Armed Forces awarded in September 2006, relating to research
activities that commenced in January 2006, as well as growth of
European sales of the INTERCEPT Blood System for platelets. Total
operating expenses for the third quarter of 2006 were $10.7 million,
up from $8.8 million for the same period in 2005, primarily due to
costs associated with establishing and building our commercial
operations in Europe, development and regulatory efforts related to
the INTERCEPT Blood System for red blood cells, 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 third quarter of 2006 was $1.8 million, or $0.06
per share, compared to net loss of $1.7 million, or $0.07 per share,
for the third quarter of 2005. For the nine months ended September 30, 2006, total revenues were
$21.4 million, compared to $18.8 million for the same period in 2005.
Net loss was $7.8 million, or $0.30 per share, for the nine months
ended September 30, 2006, compared to net income of $17.0 million, or
$0.72 per diluted share, for the nine months ended September 30, 2005.
Net income during the nine months ended September 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 September 30, 2006, the Company had cash, cash equivalents and
short-term investments of $69.6 million, an increase of $23.8 million
from December 31, 2005, reflecting net proceeds from a March 2006
equity offering of $42.4 million, offset by cash consumed in
operations and working capital. "We have recently met two significant corporate milestones," said
Claes Glassell, president and CEO of Cerus Corporation. "We enrolled
patients in the Phase I clinical trials for both our INTERCEPT red
blood cell system and our CRS-100 cancer immunotherapeutic. In
addition, we have further strengthened our European operation and
expanded market coverage through our sales force."
RECENT HIGHLIGHTS AND UPDATES
-- Cerus had a significant presence at the International Blood
Safety Congress held in September, where the INTERCEPT Blood
System was the subject of 20 scientific presentations and a
satellite symposium;
-- A Phase I clinical trial for the INTERCEPT red blood cell
system was initiated in the United States;
-- William "Obi" Greenman was promoted to the newly created
position of President, Cerus Europe;
-- Cerus' INTERCEPT Blood System was highlighted during one oral
and six poster presentations at the American Association of
Blood Banks Annual Meeting;
-- The first patients were dosed in a Phase I clinical trial for
CRS-100, Cerus' lead immunotherapy product; and
-- Agreements to settle the Company's class action and derivative
lawsuits were reached, subject to court approval.
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.
CERUS CORPORATION
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
(In thousands except per share information)
Three Months Nine Months
Ended Ended
September 30, September 30,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues
Milestones and development funding $2,597 $3,292 $10,618 $8,819
Government grant and cooperative
agreements 4,583 3,519 8,764 9,547
Product revenue 794 69 2,049 395
-------- -------- -------- --------
Total Revenues 7,974 6,880 21,431 18,761
-------- -------- -------- --------
Operating expenses
Cost of product revenue 373 -- 836 --
Research and development 7,030 6,626 22,069 17,556
Selling, general and
administrative 3,273 2,161 10,151 7,198
-------- -------- -------- --------
Total operating expenses 10,676 8,787 33,056 24,754
-------- -------- -------- --------
Loss from operations (2,702) (1,907) (11,625) (5,993)
Interest income and other, net 915 241 3,836 22,951
-------- -------- -------- --------
Net income (loss) $(1,787) $(1,666) $(7,789) $16,958
======== ======== ======== ========
Net income (loss) per share:
Basic $(0.06) $(0.07) $(0.30) $0.76
Diluted $(0.06) $(0.07) $(0.30) $0.72
Weighted average common shares
outstanding used for basic and
diluted income (loss) per share
Basic 27,800 22,373 26,250 22,317
Diluted 27,800 22,373 26,250 23,694
CERUS CORPORATION
CONDENSED UNAUDITED BALANCE SHEETS
(In thousands)
September 30, December 31,
2006 2005
------------- ------------
Cash, cash equivalents, and short-term
investments $69,591 $45,805
Accounts receivable and other current assets 9,624 5,200
Inventories 1,836 --
Furniture and equipment, net 1,517 1,235
Other assets 6,442 6,420
------------- ------------
Total Assets $89,010 $58,660
============= ============
Accounts payable and accrued liabilities $10,129 $7,289
Current loan and interest payable -- 4,826
Deferred gain 3,520 --
Deferred revenues 2,054 11,135
Other current liabilities 100 67
Other long-term liabilities 41 68
------------- ------------
Total liabilities 15,844 23,385
------------- ------------
Stockholders' equity 73,166 35,275
------------- ------------
Total liabilities and stockholders'
equity $89,010 $58,660
============= ============
CONTACT: Cerus Corporation
Myesha Edwards, 925-288-6017 (Corporate Communications)
SOURCE: Cerus Corporation
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