Product sales of $3.1 million, loss of $8.8 million or $0.27 per share CONCORD, Calif.--(BUSINESS WIRE)--Oct. 30, 2008--Cerus Corporation
(NASDAQ:CERS) today announced financial results for the third quarter
ended September 30, 2008. Product sales in the third quarter were $3.1
million, up from $2.8 million in the third quarter of 2007. Growth in
the third quarter came through sales to distributors, primarily in
Spain. Product sales in the third quarter of 2008 were down from $4.0
million in the second quarter primarily due to the effects of seasonal
slowing in Europe. Through the first three quarters of 2008, product
sales were $12.0 million, compared to $5.6 million in the first three
quarters of 2007. Total revenue for the third quarter of 2008 was $3.9 million, up
from $3.2 million for the third quarter of 2007. In addition to
product sales, the Company recognized $0.8 million of government grant
revenue in the third quarter of 2008, compared to $0.4 million of
grant revenue in the third quarter of 2007. Through the first three
quarters of 2008, total revenue was $12.9 million, compared to $8.6
million in the first three quarters of 2007. Total operating expenses for the third quarter of 2008 were $9.6
million, approximately equivalent to total operating expenses for the
same period in 2007. Margins on product sales, net of royalties, to
Fenwal were 38% in the third quarter of 2008, down slightly from 39%
for the third quarter of 2007 when the Company's sales mix included a
higher percentage of illuminator sales, a higher margin product,
relative to lower margin disposable kit sales. Margins on product
sales for the first three quarters of 2008 were 44%, up from 37% for
the comparable period in 2007 due to both higher disposable kit volume
and proportionately more illuminators sold in 2008 than in 2007. Total
operating expenses for the first three quarters of 2008 were $29.5
million, down 21% from $37.4 million in the first three quarters of
2007. Included in the total operating expenses for the first three
quarters of 2007 was the recognition of $9.45 million non-cash
impairment charge relating to our equity investment in BioOne. Net loss for the third quarter of 2008 was $8.8 million, or $0.27
per share, compared to a net loss from continuing operations of $6.8
million, or $0.21 per share, for the third quarter of 2007. Net loss
from continuing operations in 2007 excluded $2.4 million (or $0.08 per
share) in losses associated with the Company's former immunotherapy
business which was reported as a discontinued operation in 2007. Net
loss from continuing operations for the first nine months of 2008 was
$23.2 million, or $0.72 per share, down from $28.9 million, or $0.91
cents per share, for the comparable period of 2007. At September 30, 2008, the Company had cash, cash equivalents and
short-term investments of $29.5 million, reflecting a $27.4 million
reduction since the beginning of the year. Cash usage in the first
three quarters included $5.5 million in cash used for working capital.
The Company believes its cash balance, together with its borrowing
capacity, will be adequate to fund its operations through at least the
second quarter of 2009. In June 2008, the Company put in place a $10
million revolving credit facility with Wells Fargo Bank. The terms of
the credit facility allow Cerus to draw down funds as needed for
working capital and general corporate purposes, subject to specified
conditions. The Company has not drawn down funds from the facility to
date. "We are not satisfied with the product sales achieved in the third
quarter, which were impacted principally by the lack of progress in
France," said Claes Glassell, president and CEO of Cerus. "We are
reducing our operating expenses and expect our sales to grow and
margins to expand into next year. By reducing our expenses and
increasing our sales, we expect to extend our runway with our existing
resources."
RECENT HIGHLIGHTS
-- The Company signed an agreement with the Frankfurt region of
the German Red Cross to collaborate on the development of its
red blood cell system. The Company expects to initiate a Phase
I clinical trial of the modified red blood cell system
shortly;
-- The AK Blut, a committee within the German Health Ministry,
recommended that only pathogen inactivated platelets, such as
those treated with the INTERCEPT platelet system, be exempt
from a recommendation to reduce allowable platelet storage
life from five days to four days.
-- The Company received an expanded label claim allowing the use
of its INTERCEPT Blood System to treat previously frozen
plasma. Under the expanded claim, blood banks in countries
that recognize the CE mark may now use INTERCEPT pathogen
inactivation to treat either previously frozen or freshly
collected plasma.
QUARTERLY CONFERENCE CALL
Cerus has scheduled its quarterly conference call for 4:30 p.m.
Eastern time today. To access the webcast, log on to the Investor
Relations page of the Cerus Web site at www.cerus.com. Alternatively,
you may access the live conference call by dialing 877-407-0782 (U.S.)
or 201-689-8567 (International). A telephone and webcast replay will
be available approximately two hours after the call through November
6, 2008. The replay can be accessed by dialing 877-660-6853 (U.S.) or
201-612-7415 (International), and entering account number 286 and
conference ID number 285642. ABOUT CERUS Cerus Corporation is a biomedical products company focused on
commercializing the INTERCEPT Blood System to enhance blood safety.
The INTERCEPT Blood System is designed to inactivate blood-borne
pathogens in donated blood components intended for transfusion. Cerus
currently markets the INTERCEPT Blood System for both platelets and
plasma in Europe, Russia, the Middle East and selected countries in
other regions around the world. The Company is also pursuing
regulatory approvals in the United States and other countries. The
INTERCEPT red blood cell system is currently in clinical development. INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation. Forward Looking Statements Except for the historical statements contained herein, this press
release contains forward-looking statements concerning the Company's
prospects and results, including the Company's expectations regarding
the adequacy of its cash balance to fund future operations and ability
to obtain additional capital, efforts to contain costs and grow
revenue and its plans to pursue further clinical development of the
INTERCEPT red blood cell system. Because the Company's forward-looking
statements are subject to risks and uncertainties, there are important
factors that could cause actual results to differ materially from
those in the forward-looking statements. These factors include,
without limitation, risks and uncertainties associated with Cerus'
need for additional capital, the sufficiency of existing cash
resources, the timing and success of clinical trials, the timing and
success of commercialization efforts, our research, development and
commercialization expenses, market acceptance of its products and the
other risks and uncertainties disclosed from time to time in reports
filed by the Company with the SEC, including most recently the
Company's Form 10-Q for the fiscal quarter ended June 30, 2008 filed
with the SEC on July 31, 2008 and the Company's Form 10-Q for the
fiscal quarter ended September 30, 2008 to be filed with the SEC on or
about October 30, 2008. The Company disclaims any obligation or
undertaking to update or revise any forward-looking statements
contained in this press release.
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
STATEMENTS OF OPERATIONS
(In thousands except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2008 2007 2008 2007
---------- -------- --------- ---------
Revenue
Product revenue $ 3,095 $ 2,762 $ 11,977 $ 5,620
Government grant and
cooperative agreements 787 414 904 3,029
---------- -------- --------- ---------
Total Revenue 3,882 3,176 12,881 8,649
---------- -------- --------- ---------
Cost of product revenue 1,913 1,673 6,704 3,564
---------- -------- --------- ---------
Gross profit 1,969 1,503 6,177 5,085
Operating expenses
Research and development 2,483 4,006 7,937 10,831
Selling, general and
administrative 7,067 5,631 21,607 17,104
Impairment of long-term
investment in related party -- -- -- 9,450
---------- -------- --------- ---------
Total operating expenses 9,550 9,637 29,544 37,385
---------- -------- --------- ---------
Loss from operations (7,581) (8,134) (23,367) (32,300)
Interest and other income
(expense), net (1,237) 1,334 164 3,418
---------- -------- --------- ---------
Loss from continuing
operations $(8,818) $(6,800) $(23,203) $(28,882)
---------- -------- --------- ---------
Discontinued operations:
Loss from discontinued
operations -- (2,351) -- (4,992)
---------- -------- --------- ---------
Net loss $(8,818) $(9,151) $(23,203) $(33,874)
========== ======== ========= =========
Net loss per share:
Loss from continuing
operations per common share
- basic and diluted $ (0.27) $ (0.21) $ (0.72) $ (0.91)
Loss from discontinued
operations per common
share - basic and diluted $ -- $ (0.08) $ -- $ (0.15)
Net loss per share - basic
and diluted $ (0.27) $ (0.29) $ (0.72) $ (1.06)
Weighted average common shares
outstanding used for basic
and diluted loss per share
Basic 32,530 31,850 32,400 31,810
Diluted 32,530 31,850 32,400 31,810
CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
BALANCE SHEETS
(In thousands)
September December
30, 31,
2008 2007
--------- --------
Cash, cash equivalents, and short-term investments $29,491 $56,850
Accounts receivable and other current assets 8,202 9,990
Inventories 10,308 7,062
Property and equipment, net 1,561 1,322
Other assets 2,836 2,985
--------- --------
Total Assets $52,398 $78,209
========= ========
Accounts payable and accrued liabilities $12,476 $16,786
Deferred revenue 85 1,504
Other current liabilities 9 30
Other long-term liabilities 224 2
--------- --------
Total liabilities 12,794 18,322
--------- --------
Stockholders' equity 39,604 59,887
--------- --------
Total liabilities and stockholders' equity $52,398 $78,209
========= ========
CONTACT: Cerus Corporation
William J. Dawson
Vice President, Finance & CFO
925-288-6053
or
Porter Novelli Life Sciences
Jason I. Spark
619-849-6005
SOURCE: Cerus Corporation
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