CONCORD, Calif. -- Cerus Corporation (NASDAQ:CERS) today announced results for the fourth quarter and year-ended December 31, 2006.
Revenues for the fourth quarter of 2006 were $14.1 million, up from $5.6 million for the fourth quarter of 2005, primarily due to the receipt and recognition of $9.5 million in milestone consideration received from BioOne Corporation in the fourth quarter of 2006. Product sales of the INTERCEPT Blood System for platelets in Europe were $0.9 million during the fourth quarter of 2006 compared to $90 thousand for the same period in 2005. Total operating expenses for the fourth quarter of 2006 were $12.0 million, up from $9.0 million for the same period in 2005, due primarily to European commercialization activities for the INTERCEPT Blood System, costs incurred to initiate and maintain Phase I clinical trials for the red blood cell system and CRS-100 product candidates, and non-cash stock-based compensation as a result of adopting FAS 123R.
Net income for the fourth quarter of 2006 was $3.0 million or $0.10 per share, compared to a net loss of $3.9 million or $0.17 per share, for the fourth quarter of 2005.
For the year ended December 31, 2006, total revenues were $35.6 million compared to $24.4 million for the same period in 2005. Product sales for the year ended December 31, 2006, were $3.0 million compared to $0.5 million for the same period in 2005. Net loss was $4.8 million, or $0.18 per share for the year ended December 31, 2006, compared to a net income of $13.1 million or $0.55 per diluted share for the same period in 2005. The net loss for the year ended December 31, 2006, compared to the net income for 2005, is attributable to increased expenses associated with European commercialization activities, costs associated with our Phase I clinical trials, and non-cash stock-based compensation associated with the adoption of FAS 123R in 2006, offset by the higher revenues recognized during 2006. Results for 2005 were favorably affected by recognition of a one-time gain of $22.1 million associated with the settlement of a loan dispute with Baxter. At December 31, 2006, the company had cash, cash equivalents and short-term investments of $93.4 million as compared with $45.8 million at the end of 2005.
"We have made significant progress, delivering on major milestones over the past year," said Claes Glassell, president and chief executive officer of Cerus Corporation. "Our commercial development efforts in Europe are gaining momentum and we continue to increase the number of paying customers for the INTERCEPT Blood System."
Highlights from the fourth quarter and recent developments include:
* Received CE mark approval for the INTERCEPT Blood System for Plasma in Europe;
* Received French national approval for plasma system;
* Received notice of first German regulatory approval for blood bank to sell INTERCEPT-treated platelets;
* Received $9.5 million in cash and equity consideration for milestone obligation from BioOne; and
* Raised $24.3 million in registered direct offering of common stock.
Quarterly Conference Call
The company has scheduled its quarterly conference call for 4:30 p.m. Eastern time today. To access the webcast via the internet, log on to www.cerus.com. Alternatively, you may access the live conference call by dialing 866-383-8108 (U.S.) or 617-597-5343 (International) and dial participant passcode 27219354. A telephone replay will be available approximately two hours after the call through 5:00 p.m. EST, February 27, 2007. To access the replay, please call 888-286-8010 (U.S.) or 617-801-6888 and enter passcode 65485120. The webcast will be archived on www.cerus.com through March 22, 2007.
ABOUT CERUS
Cerus Corporation is a biopharmaceutical company that develops and commercializes novel, proprietary products in the fields of blood safety and immunotherapy 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.
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
(In thousands except per share information)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------------------
2007 2006 2007 2006
---------- -------- -------- --------
Revenue:
Product revenue $ 2,395 $ 926 $ 8,015 $ 2,975
Government grant and
cooperative agreements -- 562 3,029 4,836
Milestones and development
funding -- 12,168 -- 22,499
---------- -------- -------- --------
Total Revenue 2,395 13,656 11,044 30,310
---------- -------- -------- --------
Cost of product revenue 1,664 705 5,228 1,541
---------- -------- -------- --------
Gross Profit 731 12,951 5,816 28,769
Operating expenses:
Research and development 4,126 3,930 14,957 16,036
Selling, general, and
administrative 7,471 4,149 24,575 15,082
Impairment of long-term
investment in related party -- -- 9,450 --
---------- -------- -------- --------
Total operating expenses 11,597 8,079 48,982 31,118
---------- -------- -------- --------
Income (Loss) from operations (10,866) 4,872 (43,166) (2,349)
Interest income and other, net 648 865 4,066 4,701
---------- -------- -------- --------
Income (Loss)from continuing
operations before income taxes (10,218) 5,737 (39,100) 2,352
Income taxes -- -- -- --
Net income (loss)from
continuing operations $(10,218) $ 5,737 $(39,100) $ 2,352
========== ======== ======== ========
Discontinued operations:
Loss from discontinued
operations (828) (2,727) (5,820) (7,131)
Loss from sale of discontinued
operations (384) -- (384) --
---------- -------- -------- --------
Net loss from discontinued
operations (1,212) (2,727) (6,204) (7,131)
---------- -------- -------- --------
Net income (loss) $(11,430) $ 3,010 $(45,304) $(4,779)
========== ======== ======== ========
Net income (loss) per share:
Basic $ (0.36) $ 0.10 $ (1.42) $ (0.18)
Diluted $ (0.36) $ 0.10 $ (1.42) $ (0.18)
Weighted average common shares
outstanding used for basic and
diluted income (loss) per
share
Basic 32,060 28,800 31,870 26,870
Diluted 32,060 30,180 31,870 26,870
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
(In thousands)
December 31, December 31,
2007 2006
------------ ------------
Cash, cash equivalents, and short-term
investments $ 56,850 $ 93,416
Accounts receivable and other current assets 9,990 7,494
Inventories 7,062 1,833
Property and equipment, net 1,322 1,627
Other assets 2,985 11,447
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Total Assets $ 78,209 $ 115,817
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Accounts payable and accrued liabilities $ 16,786 $ 14,144
Deferred gain -- 586
Deferred revenues 1,504 --
Other current liabilities 30 84
Other long-term liabilities 2 32
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Total liabilities 18,322 14,846
--------- ---------
Stockholders' equity 59,887 100,971
--------- ---------
Total liabilities and stockholders'
equity $ 78,209 $ 115,817
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Cerus Corporation
William J. Dawson, 925-288-6053
Vice President, Finance & CFO
or
Vida Communication (On behalf of CERUS)
Stephanie Diaz, 415-675-7401
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