Exhibit 99.1
Contact:
Myesha Edwards
Corporate Communications
Cerus Corporation
(925) 288-6017
CERUS CORPORATION ANNOUNCES SECOND QUARTER FINANCIAL RESULTS
CONCORD, CA, July 31, 2007—Cerus Corporation (NASDAQ: CERS) today announced financial results for the second quarter ended June 30, 2007.
Revenues for the second quarter of 2007 were $4.5 million, down from $6.5 million for the second quarter of 2006. Product revenues for the INTERCEPT Blood System increased to $1.7 million during the current quarter, up from $0.8 million during the second quarter of 2006. In contrast to the second quarter of 2006, when $4.2 million of revenue was recognized from milestone payments received from BioOne and development funding from agreements with Baxter and MedImmune, in the second quarter of 2007 no such revenue was recognized. Total operating expenses for the second quarter of 2007 were $23.4 million, up from $12.4 million for the same period in 2006. This increase was primarily due to a non-cash charge of $9.5 million, reflecting a write-down of the carrying value of the Company’s equity interest in BioOne, which licensed commercialization rights for the INTERCEPT platelet and plasma systems in Asia, and costs associated with commercialization efforts in Europe.
Net loss for the second quarter of 2007 was $17.9 million, or $0.56 per share, compared to net loss of $5.1 million, or $0.18 per share, for the second quarter of 2006. The total operating expenses and loss during the quarter
included the non-cash charge of $9.5 million, or $0.30 per share, associated with the write-down of the Company’s equity interest in BioOne.
At June 30, 2007, the Company had cash, cash equivalents and short-term investments of $74.4 million.
“I am pleased with the solid commercial progress of the INTERCEPT Blood System,” said Claes Glassell, president and CEO of Cerus Corporation. “We continue to increase sales and customers quarter by quarter and have signed several distribution agreements to help accelerate our rollout plan for the INTERCEPT Blood System.”
RECENT HIGHLIGHTS
| | • | | Grifols S.A. and Cerus agreed to commercialize the INTERCEPT Blood System in Spain and Portugal; |
| | • | | Cerus signed additional distribution agreements in Greece and Turkey and has an existing distribution agreement in Kuwait; |
| | • | | Cerus signed an initial contract to supply national blood centers in France with its platelet system; |
| | • | | INTERCEPT plasma gained registration in French official journal; |
| | • | | The largest blood center in Germany has filed for its marketing authorization with the Paul Ehrlich Institute; and |
| | • | | Cerus had a successful presence at the International Society for Blood Transfusion congress in Madrid, Spain. |
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.
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ABOUT CERUS
Cerus Corporation is a biopharmaceutical company that develops and commercializes novel, proprietary products in the fields of blood safety and immunotherapy designed 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. The system 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 attenuatedListeria 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 the research and development of prophylactic and therapeutic vaccines for infectious diseases.
INTERCEPT, INTERCEPT Blood System and Helinx are trademarks of Cerus Corporation.
This press release contains forward-looking statements, including statements related to the potential efficacy the Company’s products and technologies and the commercial progress of such products. For this purpose, any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “intends,” “believes,” “estimates,” “expects,” “plans” and similar words or expressions or the negative of these words or expressions are intended to identify forward-looking statements. Actual results could differ materially from these forward-looking statements as a result of certain factors, including, without limitation, the risks identified in the company’s filings with the Securities and Exchange Commission, including the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2007. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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.
Financial Tables Attached
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
STATEMENTS OF OPERATIONS
(In thousands except per share information)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
June 30, | | | Six Months Ended
June 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Government grant and cooperative agreements | | $ | 2,713 | | | $ | 1,480 | | | $ | 6,224 | | | $ | 4,182 | |
Product revenue | | | 1,671 | | | | 776 | | | | 2,858 | | | | 1,255 | |
Milestones and development funding | | | 130 | | | | 4,204 | | | | 130 | | | | 8,021 | |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 4,514 | | | | 6,460 | | | | 9,212 | | | | 13,458 | |
| | | | | | | | | | | | | | | | |
| | | | |
Operating expenses | | | | | | | | | | | | | | | | |
Cost of product revenue | | | 1,067 | | | | 281 | | | | 1,891 | | | | 464 | |
Research and development | | | 6,757 | | | | 7,977 | | | | 13,205 | | | | 14,615 | |
Selling, general and administrative | | | 6,151 | | | | 4,142 | | | | 11,473 | | | | 7,301 | |
Impairment of long-term investment in related party | | | 9,450 | | | | — | | | | 9,450 | | | | — | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 23,425 | | | | 12,400 | | | | 36,019 | | | | 22,380 | |
| | | | | | | | | | | | | | | | |
Loss from operations | | | (18,911 | ) | | | (5,940 | ) | | | (26,807 | ) | | | (8,922 | ) |
Interest income and other, net | | | 996 | | | | 868 | | | | 2,084 | | | | 2,921 | |
| | | | | | | | | | | | | | | | |
Net loss | | $ | (17,915 | ) | | $ | (5,072 | ) | | $ | (24,723 | ) | | $ | (6,001 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Net loss per share: | | | | | | | | | | | | | | | | |
Basic | | $ | (0.56 | ) | | $ | (0.18 | ) | | $ | (0.78 | ) | | $ | (0.24 | ) |
Diluted | | $ | (0.56 | ) | | $ | (0.18 | ) | | $ | (0.78 | ) | | $ | (0.24 | ) |
| | | | |
Weighted average common shares outstanding used for basic and diluted loss per share | | | | | | | | | | | | | | | | |
Basic | | | 31,810 | | | | 27,770 | | | | 31,790 | | | | 25,450 | |
Diluted | | | 31,810 | | | | 27,770 | | | | 31,790 | | | | 25,450 | |
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
BALANCE SHEETS
(In thousands)
| | | | | | |
| | | June 30, 2007 | | December 31, 2006 |
Cash, cash equivalents, and short-term investments | | $ | 74,435 | | $ | 93,416 |
Accounts receivable and other current assets | | | 9,678 | | | 7,494 |
Inventories | | | 4,090 | | | 1,833 |
Furniture and equipment, net | | | 1,450 | | | 1,627 |
Other assets | | | 2,162 | | | 11,447 |
| | | | | | |
Total Assets | | $ | 91,815 | | $ | 115,817 |
| | | | | | |
Accounts payable and accrued liabilities | | $ | 14,113 | | $ | 14,144 |
Deferred revenue | | | 32 | | | — |
Deferred gain | | | — | | | 586 |
Other current liabilities | | | 48 | | | 84 |
Other long-term liabilities | | | 17 | | | 32 |
| | | | | | |
Total liabilities | | | 14,210 | | | 14,846 |
| | | | | | |
Stockholders’ equity | | | 77,605 | | | 100,971 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 91,815 | | $ | 115,817 |
| | | | | | |
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