Cerus Corporation (NASDAQ:CERS) today announced financial results for the first quarter ended March 31, 2008.
Product revenue for the INTERCEPT Blood System increased to $4.9 million during the first quarter of 2008, up from $1.2 million during the first quarter of 2007 and $2.4 million in the fourth quarter of 2007. This increase was largely driven by an increase in unit sales of consumable platelet system kits and illuminators. Total revenue for the first quarter of 2008 was $5.0 million, up from $2.3 million for the first quarter of 2007, driven by increased product sales and offset by lower government grant revenue. Total operating expenses for the first quarter of 2008 were $9.9 million, up from $8.6 million for the same period in 2007. The increase in operating expenses was due primarily to planned expansion of our sales and marketing operations to support commercialization of the INTERCEPT Blood System.
Net loss for the first quarter of 2008 was $5.3 million, or $0.16 per share, compared to a net loss of $6.8 million, or $0.21 per share, for the first quarter of 2007.
At March 31, 2008, the Company had cash, cash equivalents and short-term investments of $46.7 million. The Company consumed $10.1 million during the first quarter, of which $6.1 million was attributable to increased investment in working capital.
“With sales up significantly from last year, I am very pleased with our overall performance during the quarter,” said Claes Glassell, president and CEO of Cerus Corporation. “We expect to see continued momentum this year for adoption of pathogen inactivation and are excited about the commercial opportunities we are targeting.”
- Product sales in the first quarter of 2008 increased by more than 300% from the first quarter of 2007;
- Cerus promoted Laurence M. Corash, M.D., to Senior Vice President and Chief Medical Officer;
- Cerus appointed Carol A. Moore as Vice President, Regulatory Affairs and Quality; and
- Cerus received a label expansion for use of platelets and plasma treated with the INTERCEPT Blood System to prevent transfusion-associated graft-vs.-host disease.
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. Please connect to the company’s website at least 15 minutes prior to the conference call to ensure adequate time for any software downloads. 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 11:59 p.m. EDT, May 8, 2008. To access the replay, please call 877-660-6853 (U.S.) or 201-612-7415 (International) and enter account number 286 and conference ID number 282175. The webcast will be archived on www.cerus.com.
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 and the Middle East. 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 that the Company’s expectations regarding continued momentum for adoption of pathogen inactivation. 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 that physicians and patients may not accept blood products treated by the Company’s pathogen inactivation products and the 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-K for the fiscal year ended December 31, 2007 filed with the SEC on February 27, 2008. The Company disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release.
CONDENSED CONSOLIDATED UNAUDITED
STATEMENTS OF OPERATIONS
(In thousands except per share information)
|Three Months Ended |
|Government grant and cooperative agreements||117||1,064|
|Cost of product revenue||1,714||824|
|Research and development||3,076||3,266|
|Selling, general and administrative||6,809||5,322|
|Total operating expenses||9,885||8,588|
|Loss from operations||(6,630||)||(7,161||)|
|Interest income and other, net||1,338||1,088|
|Net loss from continuing operations||(5,292||)||(6,073||)|
|Loss from discontinued operations||--||(735||)|
|Net loss from discontinued operations||--||(735||)|
|Net loss per share:|
Net loss from continuing operations per share – basic and diluted
|Net loss from discontinued operations per share – basic and diluted||$||--||$||(0.02||)|
|Net loss per share – basic and diluted||$||(0.16||)||$||(0.21||)|
Weighted average common shares outstanding used for basic and diluted loss per share
CONDENSED CONSOLIDATED UNAUDITED
|Cash, cash equivalents, and short-term investments||$||46,714||$||56,850|
|Accounts receivable and other current assets||9,148||9,990|
|Property and equipment, net||1,695||1,322|
|Accounts payable and accrued liabilities||$||13,473||$||16,786|
|Other current liabilities||24||30|
|Other long-term liabilities||226||2|
|Total liabilities and stockholders’ equity||$||70,020||$||78,209|
William J. Dawson
VP, Finance & Chief Financial Officer
Porter Novelli Life Sciences
Jason Spark, 619-849-6005