Exhibit 99.1
Contact:
Myesha Edwards
Corporate Communications
Cerus Corporation
(925) 288-6017
CERUS CORPORATION ANNOUNCES THIRD QUARTER
FINANCIAL RESULTS
CONCORD, CA, OCTOBER 30, 2007—Cerus Corporation (NASDAQ: CERS) today announced financial results for the third quarter ended September 30, 2007.
Product revenue for the INTERCEPT Blood System increased to $2.8 million during the third quarter of 2007, up from $0.8 million during the third quarter of 2006. Total revenues for the third quarter of 2007 were $3.7 million, down from $8.0 million for the third quarter of 2006, when $2.6 million of milestone payments from BioOne and development funding under agreements with Baxter and MedImmune were recognized. No such revenue was recognized in the third quarter of 2007. In addition, $3.6 million less in government grant funding was recognized in the third quarter of 2007 as compared to the prior year period. Total operating expenses for the third quarter of 2007 were $14.2 million, up from $10.7 million for the same period in 2006. The higher operating expenses in the third quarter of 2007 are primarily due to an increase of $1.3 million in cost of products sold and $2.0 million in higher selling, general and administrative expenses associated with our commercialization efforts of the INTERCEPT Blood System.
Net loss for the third quarter of 2007 was $9.2 million, or $0.29 per share, compared to net loss of $1.8 million, or $0.06 per share, for the third quarter of 2006.
For the nine months ended September 30, 2007, product revenue rose 174% to $5.6 million from $2.0 million during the prior year period. Total revenues declined to $12.9 million in the first nine months of 2007 from $21.4 million during the same period in 2006, when milestone and development revenue from BioOne was recognized. Operating expenses rose to $50.2 million in the nine months ended September 30, 2007, from $33.1 million in the same period in 2006. The increase was primarily due to recognition of a $9.45 million non-cash impairment in the value of the Company’s equity investment in BioOne as well as increases of $2.7 million in cost of product revenue and $6.2 million in selling, general and administrative expense, largely arising from increased commercialization activities in Europe.
Net loss for the nine months ended September 30, 2007, was $33.9 million, or $1.06 per share, compared to $7.8 million, or $0.30 per share, in the same period in 2006.
At September 30, 2007, the Company had cash, cash equivalents and short-term investments of $69.0 million, down from $93.4 million at December 31, 2006.
“We are pleased to see good commercial progress in Europe,” said Claes Glassell, president and CEO of Cerus Corporation. “Our team continues to lay the foundation for future growth.”
RECENT HIGHLIGHTS
| | • | | Product sales in the third quarter of 2007 increased by 65% from the second quarter of 2007, up from the 40% growth rate from the first to second quarter of 2007. Year-to-date product |
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| | sales were $5.6 million in the nine months ended September 30, 2007, up significantly from $2.0 million in the same period in 2006; |
| | • | | We recently signed a distribution agreement to supply blood centers in Russia and other CIS countries, and began coordinating commercial efforts with Grifols, our distributor in Spain and Portugal, and with our distributors in Greece, Turkey and Kuwait; |
| | • | | We presented scientific and commercial use data at four medical conferences, including at last week’s American Association of Blood Banks conference in Southern California. |
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 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
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and development of prophylactic and therapeutic vaccines for infectious diseases.
INTERCEPT, INTERCEPT Blood System and Helinx are trademarks of Cerus Corporation.
Financial Tables Attached
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
STATEMENTS OF OPERATIONS
(In thousands except per share information)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, | | | Nine Months Ended
September 30, | |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 | |
Revenues | | | | | | | | | | | | | | | | |
Product revenue | | $ | 2,762 | | | $ | 794 | | | $ | 5,620 | | | $ | 2,049 | |
Government grant and cooperative agreements | | | 938 | | | | 4,583 | | | | 7,162 | | | | 8,764 | |
Milestones and development funding | | | — | | | | 2,597 | | | | 130 | | | | 10,618 | |
| | | | | | | | | | | | | | | | |
Total Revenues | | | 3,700 | | | | 7,974 | | | | 12,912 | | | | 21,431 | |
| | | | | | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | |
Cost of product revenue | | | 1,673 | | | | 373 | | | | 3,564 | | | | 836 | |
Research and development | | | 6,881 | | | | 6,672 | | | | 20,086 | | | | 21,287 | |
Selling, general and administrative | | | 5,631 | | | | 3,631 | | | | 17,104 | | | | 10,933 | |
Impairment of long-term investment in related party | | | — | | | | — | | | | 9,450 | | | | — | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 14,185 | | | | 10,676 | | | | 50,204 | | | | 33,056 | |
| | | | | | | | | | | | | | | | |
Loss from operations | | | (10,485 | ) | | | (2,702 | ) | | | (37,292 | ) | | | (11,625 | ) |
Interest income and other, net | | | 1,334 | | | | 915 | | | | 3,418 | | | | 3,836 | |
| | | | | | | | | | | | | | | | |
Net loss | | $ | (9,151 | ) | | $ | (1,787 | ) | | $ | (33,874 | ) | | $ | (7,789 | ) |
| | | | | | | | | | | | | | | | |
Net loss per share: | | | | | | | | | | | | | | | | |
Basic | | $ | (0.29 | ) | | $ | (0.06 | ) | | $ | (1.06 | ) | | $ | (0.30 | ) |
Diluted | | $ | (0.29 | ) | | $ | (0.06 | ) | | $ | (1.06 | ) | | $ | (0.30 | ) |
| | | | |
Weighted average common shares outstanding used for basic and diluted loss per share | | | | | | | | | | | | | | | | |
Basic | | | 31,850 | | | | 27,800 | | | | 31,810 | | | | 26,250 | |
Diluted | | | 31,850 | | | | 27,800 | | | | 31,810 | | | | 26,250 | |
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED
BALANCE SHEETS
(In thousands)
| | | | | | |
| | | September 30, 2007 | | December 31, 2006 |
Cash, cash equivalents, and short-term investments | | $ | 69,035 | | $ | 93,416 |
Accounts receivable and other current assets | | | 8,315 | | | 7,494 |
Inventories | | | 3,943 | | | 1,833 |
Furniture and equipment, net | | | 1,397 | | | 1,627 |
Other assets | | | 2,340 | | | 11,447 |
| | | | | | |
Total Assets | | $ | 85,030 | | $ | 115,817 |
| | | | | | |
Accounts payable and accrued liabilities | | $ | 15,791 | | $ | 14,144 |
Deferred revenue | | | 39 | | | — |
Deferred gain | | | — | | | 586 |
Other current liabilities | | | 32 | | | 84 |
Other long-term liabilities | | | 6 | | | 32 |
| | | | | | |
Total liabilities | | | 15,868 | | | 14,846 |
| | | | | | |
Stockholders’ equity | | | 69,162 | | | 100,971 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 85,030 | | $ | 115,817 |
| | | | | | |
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