CERS - Earnings call transcript Q2 2022

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Operator

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Cerus Corporation Second Quarter 2022 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. Please be advised that today's conference is being recorded. to conference like speaker, to now Mr. would hand over the your I Director Investor Notarianni, of Matt Senior Relations. Mr. may you Notarianni, begin

Matt Notarianni

Thank you, joining for to thank and good afternoon. us I'd today. like everyone

you are As displaying part webcast, we of slides today's that can follow. simultaneously

Vice Cerus' Moore, can Nina Green, website Richard ir.cerus.com. Development Relations business Leader; Officer; and Cerus' Benjamin, President, are quarter ended Greenman, Cerus’ results Chief highlights. With the Cerus' Cerus' Affairs. Chief Chief Mufti, recent and Senior XXXX Jessica release Jayaraman, XX, call at Cerus' and the Financial June a the President Medical Vice President Blood from Chief on Executive Affairs Red You Dr. financial describing Officer; today Regulatory Cell access issued the Obi Dr. of the our company's Investor Cerus’ Corporate Operating slides Officer; me Officer; Carol Cerus for and of Vivek Kevin second Hanover, and President Vice Quality; press announcing Program

initiatives, These and well and XX, Risk You some and and in performance also and We the identified gross our as activities. or and goals, press can our launches, I'd Form which Factors anticipated cash involve growth materially. product and clinical you Form release including adjusted XX-K future call product expenses, margins, and operating use announcement future June presented non-GAAP with and future commercial should to results, operating remind on can historical like will for actual the regulatory and future that product cause than to gross our year Examples obligation we events to product and today's our sales, we trials, including be statements under XXXX, a those replacement measures ended at ended results profits, that operations, this EBITDA. guidance company relate today's are will and no ongoing These our development, a strategy, XX-Q website development and to are ongoing include the file XXXX, measures and our events, timing of forward-looking growth measures the discussing and make described including on revenue forward-looking XX, XXXX related www.cerus.com. performance, for from risks future statements events the efforts, to uncertainties will and as this differ forward-looking copy considered forward-looking undertake facts, statements. these of They accordance quarter for rather of statements. to call, non-GAAP be access in financial a GAAP. non-GAAP duty of statements future we On in update not shortly. December supplement financial

GAAP to results. For some financial to today some refer of a from comparable discuss please non-GAAP business Kevin opening to reconciliation today's We’ll begin measures review to financial measures, Obi, with financial by press and our Vivek followed highlights recent remarks release.

closing remarks. and We now, President to Obi Cerus’ pipeline Obi introduce And Officer. on Executive Greenman, with will Chief from my an commentary update it’s with conclude our pleasure and

Obi Greenman

intercept continues around increase Earlier availability. than XX such platelets our could adjusted work been more and we all Thank less definitive kit use improve with the X treated of we an published quarter million blood transfusion, defined of am System began the product blood breakeven results our many of expediting Notably, study the access to a pathogen we call. second System eclipsed pathogen in INTERCEPT has our deliver understanding which interest pleased provide concluded The this in donor and regions earlier record, and this system in transfusable recently routine for revenue our on we than I reinforce everyone. summer, plasma, proud rollout to to into The to you, good way able cash doses to which growth a INTERCEPT flow XXXX, providing patient is increase. team cumulative the in as sales, a on that Blood metric reduction translates of strong attention safeguard. that a as were profile of to continues EBITDA components world. safety value million reduction to The of as Reporting track blood units robust the blood utility non-GAAP a QX summer, reduction of increase expand and year. INTERCEPT Matt level of pathway our strong and by our treated pathogen Blood afternoon, the as has on continue to components

our implying and and product further presence rate. in our platelets with Our the XXXX. for platelet around of will for rapid blood globally. wrap the our the the Kevin means remarkable up, components. standard It quarters we Vivek than there product portfolio a comments in established the less are making I upside the of that us shaping to with INTERCEPT the After we run what as to in U.S. last believe million our realize ahead annualized us quarter to of $XXX is as with ability around as few associated continue the and INTERCEPT to and quarter significant We help growth important Fibrinogen leadership of for balance in product the year we the provide clearly color for sell With and we globe, some care the for and the mission we're pipeline the a achievement U.S. that INTERCEPT in all second selling our increased will an company, seek in quarter see market North create in on years growth full in grow years realize some mission U.S. a efforts continue how year transfusion medicine entire Complex penetration opportunities over America the slightly and have just recently now up our sales single awareness yet to used development

manufacturing expect to those financial this future equity markets, towards which our from well We we helped of now from growth breakeven, believe us and change the have we And tapping in afford leadership to realize with highlights. to clear would us turn medicine supply like us discuss I transfusion funded capacity growth, activities, secure revenue opportunities. chain Vivek position meaningful to cash the unique and our future. top flow over demonstrate will which second all see as to footprint, flexibility and which pathway help as commercial self-fund contributed in call we establish and line discipline, of couple a marked our and into our history growth a up to the the the the to deliver field our quarter

Vivek Jayaraman

good Thank second for Product up our everyone today's joining strong for you, call. year-over-year of afternoon and quarter the performance continued XXXX Obi revenues to XX% quarter. the trend of

case where XX% a the last strong sequentially. demand growth the product of America been offering, XX% several year-over-year platelet in increased revenue our quarters, for North basis on was particularly products sales and has As our led by

discuss modest contribution presence Ottawa. in secure We to facility expanding America, regulatory we EMEA, revenues, we're as growth in Canada shortly we discussed. quarter I'll the American significant North included the second his services or In geography also from finally currency North by market our forward region. Canada, Complex the will excited to the at from status launch with recognized we on ISV be some more look positive to nationwide second QX in be in in have our serving this excluding remarks. IFC led a blood Additionally, a modest quarter product headwinds a our a which Health once continues contribution sales necessary Kevin from Canadian saw Middle sales across their previously touch approvals product INTERCEPT Rounding that East of our business Fibrinogen in The bit

in year. saw this ISV and related board expected, Our continue increase launching at critical outcomes [ph]. hospital likely the hospitals to environment, contribution new [hospital sales than at pleased the overall be we second received happening wastage experiences product and availability immediate With products resulting on on balance physician top the and using and has of feedback the current to short that outcomes clinician measured continue as its pace awareness those for to expected improve IFC and the as they the of bleeding and product's team see such due challenging a to our we patients, market from cases focus has hemorrhage. In we uptake hospital and said, in was Fibrinogen help feedback need a to sequential in so been from line but product, early increasing addressing to COVID-related see quarter, this remain ability patient improve date positive on with to product uniformly the this challenges more The commercial our staffed on of the getting potential [institutions] reduce been product. interest modest early lives with availability massive the to save [ph], has will with a the difficulties Based clear rate. to to initially account] ultimately our associated as benefits unmet

looking to turn seeing in priorities in over cryoprecipitate longer strong back utility Our body around I reduced pathogen this forward it ongoing half a for of top surrogate more commercial build to remains now results to efforts discuss and business XXXX we're Kevin the beyond. of of and ramp outlook conventional evidence our IFC’s one a will detail. to as and our life shelf

Kevin Green

to the move Thanks, commercial These disciplined organization. quarter flow in pleased Vivek, I'm breakeven goal continue results, solid execution, near-term and are entire closer our results and a walk of to good our the management. which us financial afternoon, testament the and of commitment cash through everyone. to second reaching to demonstrate

offset with XX% the Vivek remarks, blood the across quarter is U.S. base XX% of this quarter of $XX in unfavorable second these recent particularly in over a year-over-year rates, companies regions As Top other the than a XX% year-over-year and first million, of U.S. U.S. U.S. and by XXXX quarter. for America strong noted the revenue and increase EMEA, his reflected sales majority also was of on the both In the to the which of we having second led led growing product North customers other during year-over-year. euro. many we move the sales growth customers our growing are by by was factor exchange versus The posted of persistence with was basis Clearly, business the to with. customer dollar and sales the more X in center stronger year, foreign growth underlying grapple dollar in half

a creating reported euros, the hedge in dollars However, in our on natural manufacturing our also bulk muting COGS costs are to in P&L. as of offset that the of rest U.S. impact results denominated an our the

our second the calculated treatable platelet year-over-year reflects XX% of our the Moving increase in a and number on growth quarter calculated a metrics, to internationally. in platelet increase XX% dose doses U.S.

by of the number the half in of internationally. doses XX% year, has U.S. first For and the grown year-over-year the XX%

product represented the In over mix our XX% of of terms kits for disposable sales INTERCEPT revenue. of quarter, product QX

product our not revenue period. to revenue for $X.X the guidance, $X.X government our totaled addition In versus QX contract prior million in included year million in and

gross Turning gross and now to margins. our profit product

to second over gross XX% the prior period, million, compared $XX.X was year-over-year. profit Our year of during million increase quarter an product $XX.X

increased Product the for saw gross compared our Our the of from several XX.X%, QX sales the profit the basis of which period. and year driver gross to points this were continuation has continued quarter increased product margins XX trend. product when growth prior past a been quarters primary

toward of we product as see lower to weighted of heavily to mix grow. which our economies kits, return has configurations, continues we also products dose a than beginning While our other our are be platelet single margins to scale

Moving on, $X.X totaled period stock included expenses, $XX.X $X operating quarter based year million the which million second million were compensation. and than prior non-cash lower our in

to expense during $XX.X quarter compared the prior second R&D million year. type, expense $XX.X totaled million, specific Our

second and related and the prior inflationary show the its period. macroeconomic grow, Second labor that, year would continued year, during driven by prices leverage. and to customer said increased of higher while quarter expect roughly some expenses ability for higher environment, the from million $XX.X we our to Having has see was Despite activities, was higher certain vendors. versus marketing modestly costs, to SG&A generating business operating travel expense the flat half

$X.X share, ended Cerus On same period. per the totaled bottom line, reported to XX, months net when for Cerus year attributable to or compared QX diluted June attributable XXXX the prior compared share million per period $X.XX three XXXX. loss Net nearly $X.XX million or halved from to for in loss diluted to the $XX.X

compared this negative metric, negative first $X.X EBITDA million $X.X our adjusted negative $X.X non-GAAP year. On $XX.X and to our date also million, to non-GAAP to of the totaled million during of year adjusted second EBITDA improved $X.X adjusted the negative XXXX of negative the million to of million, during in first first XXXX a half second quarter in basis, EBITDA quarter on Moving the half XXXX. quarter compared to

sheet Now, turning to and the flows. balance cash

We million continue continued the balance on of expense to commercial improving cash good the with and driven second establishing, sheet. cash by $XXX we about strong management. cash ended position position feel We a financial our equivalents disciplined quarter execution and strong the and of are

for operations we just during the to $XXX,XXX performance terms from QX of second utilization, quarter, came million I'm cash delivered as prior period. in in In cash our of pleased used the compared year shy $X.X with the especially

drive leverage, INTERCEPT continue significant invest pipeline the us sustainable System line to over to to Blood long-term. and towards generating top deep the expand in We organization while this growth, improve continue the allowing to SG&A

half for robust strong back our in the the like they sight global of be headwinds little time prepared believe of Wrapping near-term. around the up economic flow Throughout and will first around that in my discussing we've not cash half goals and I'd a numerous despite also we However, achievable geopolitical the our demonstrated remarks, spend lost to breakeven the have outlook globe. commercial demand, year. the of execution fulfilling XXXX,

We to despite being deliver U.S. the by double-digit year, of to product growth revenue the the caused strengthening continued back in downward expect continue pressure half the dollar.

the demand and and we [ph] products is product for Obi headwind in today, to to million, know, few a are headwind, reflects this an XX% which the full-year EMEA let $XXX guidance the to as as to closing you XXXX the our for our revenues million parity on of the] expect [Balancing strong we balance growth continue well back revenue to that, With euro, year. dollar range the As our roughly call at comments. XX%. the reiterating for with of of FX range year-over-year turn $XXX me over provide pipeline, our a update

Obi Greenman

Thank you, Kevin.

Before we questions, a to few on to up pipeline. I updates provide wanted open product our

regard U.S. trials to to efforts cell a Phase to progress, First, future our for FDA. INTERCEPT continue especially red blood mission with the III the required PMA

which Phase will we patients. update been procedures been provide studies and anemia progress following but far be completing to by III COVID-XX ReCePI study the chronic that both pandemic, underway: recall the hospitals cardiac acute acute so surgery You both this have able anemia an for two course impact the some year, Enrollment of our given over complex and we pleased trials the of I'm on that have today the enrolling target regarding enrollment. includes of to making patients; and for these and RedeS, challenged

based serum initially and in was to FDA an creatinine assess in set by after XXX the study patients on of surgery. our change ReCePI, For XX enrollment endpoint

transfused recent following based be FDA, more event rate. have the targeting of we dozen a with sites, Currently, have the endpoint assessment more upon more with across the blinded for study in-light transfused patients. enrolled than enrollment than and we XXX of of of However, patients XXX the size that discussions of would efficacy we are study power patients adequate primary ongoing sufficient a and determined XXX enrollment than

setbacks next for the complete we with we enrollment year. what expect ReCePI by COVID-XX, Assuming [indiscernible] end no further saw of would to a

about transfused our FDA, that reached either study, with enrolled we only the other every challenges patients, red transfused reminder, with study. agreement study the control the discussions cell RedeS in cell the test to have Phase a to into a study, for chronically need fold red in patients cells. Subsequent two is As the main one one this or for this separate eliminating and in sickle III exchange is of patients

we be study chronic new believe cohorts, XXXX. this RedeS, to that specifically in completed could are anemia While we patient participate for activating in still enrollment sites

patients, we duration months. with RedeS are extend solid with to and FDA set the progress the anticipated are BARDA can chronic enrolling generate As anemia U.S. the the data robust study of this timeframe beyond the in making trials pleased extend will these patient beyond this trial XX the participation and summary, as is collaboration submission. In a PMA for

summer, informed the Turning that our for Competent Netherlands, our cells, quickly submission red blood review to in earlier our this CBG, European us have they of submission. started their regulatory Authority INTERCEPT

has our four recall our reviewed in body modules. which You submitted will as we filing well, TUV notified

we've taking signs over is than the last So, review while this thought, progress longer few good of months. initially we seen

previously, a development in arise time slower CE the to regard of our working we look over a begin MDR has Authority first course half partner. Competent the Europe product than progress review. LED transition With securing of XXXX new partnership MDR make to now approval team ultimately that to has with As through the manufacturing this enable contract and we the the our discussed a our With regulatory backlog process the to launch. of to to Mark in under questions any illuminator, the in expected continued resulted due underway, forward

will we components long recently for placed the illuminators for instruments. production to have commercial lead LED instance, be begin orders that of For time used LED initial

is the product portfolio, property. LED of component product new Our in first major new key intellectual history our future will illumination our a device mark upgrade illuminator both company's of our and integrations

forward look to from coming with blood to that validation submission upcoming quarters. conducting for the required the feedback date in updating the pleased studies very centers and are are We regulatory the the you

XXXX, the INTERCEPT components expanding globe face turmoil, pandemic economic significant executing in improving obstacles delivering continue remain business. we the and access with and to blood focused the an many growth around for financial on are wane profile during the strong associated As of to

the wrap like I field connection her components and is Hua to prepared advocate in welcome Dr. truly mission. our Shan direct for to to blood medicine. Board. blood I Before years Dr. many would will also Board contributor safety our reduction to the our make to transfusion a Shan’s remarks, and and of for the pathogen strong thinking, forward receiving my Dr. has expertise, been of patients We up a fulfillment think and Shan an luminary

growth as it Lucena the expertise Specifically, decade. China Hua and embark cell both depth to with that most JV, me introduction that our in on blood we've having Ann we With with generation unique the to guidance turn for invaluable Shan, expand critical Q&A. the to confident for operator with these our the INTERCEPT of global our our and red we the Shan’s expect over in back both let next operations over years, geographically two added coming medicine. footprint Board, hospital initiatives of product, first With additions Dr. as perspective recent Dr. provide will us transfusion and I'm

Operator

first ahead. with go Blackman Instructions] Mr. Stifel. [Operator Please And you. question Thank from will come today's

Mathew Blackman

afternoon, Kevin I’ll Thanks for follow-up everybody. I maybe Vivek. and/or Obi Good for taking my and a couple then If could start to for questions.

top quarter? guidance a intact? any the full-year on FX incremental how could what I to keep give And impact of the you think much the FX Kevin, the of sense us sense line absorbing you're in was

Kevin Green

Sure, Matt.

FX have but year the them and the about X% headwind back guidance. that date we harvest guidance, some are expect rates we that least at from half we on more to rate be and had full-year, the a can about going end for think guidance cultivate higher quarter for the initially of certainly do as gave at and when to we to pressure demand maintain a enough the we FX feel we the So, to that we top our of put than

And felt comfortable we reiterating today. so,

Mathew Blackman

to million half somewhere through of looking Kevin, half And – a the year, I'm to, to of FX? underlying out get back of FX, looking year? if in of business incremental just is as of I back sense dollars couple of were a guesstimate you're sort the trying the to second the it strength the the

Kevin Green

Yes.

if growing. more certainly could know we at I X million of don't to where million. couple the half are, And it's a of it's and still for things at going [ph] a parity, but parity, the rates it's think our it the sizable when an were to think it's probably I to last Obviously, back we rates business. portion clearly, sure, be have than look impact, million, X move is at year, [XXX we of when but XXX] to and business

and, sell you the kits largest this continue know, the driver more to more We platelet and treat our as U.S. growth doses is to year. of

line in kits a So, bottom sourcing those but U.S. to impact, dollar customers, we're [ph]. selling from [euro]

we'll as back pertains the it a beneficial the bottom So, have to year of line. effect on half the

Mathew Blackman

it. then place Another with that could the look I ask, versus if roughly flat should product we revenues third thinking what be? at Is how follow-up Got the to you posted. right way about seasonality? be And just it's quarter just I to you, I consensus, and if think

Obi Greenman

Yes. the let Matt. one. Thanks handle Vivek question, I'll for that

Vivek Jayaraman

Thanks for Matt. interest. question. Appreciate the Hey, your

I that That pandemic the it's business we're being you look there be of to second into and certainly half related currency or said, facing underlying – think year, hospitals I access strength mentioned to in headwinds into. some the the robust. the continues of issues continued as growth the whether previously, product or are as

continue I offer we adoption, we see but we really know some second year. of guidance, ended Kevin, [indiscernible] in So, very there's product real faced quarterly can team don’t for headwinds half are but the the I we confidence the there think as

Kevin Green

going of just thing being just the only Matt that we was, issued. as QX is, Yeah. last remind I'd note went guidance into final into to you year, sort The

motivation clear, U.S. in to blood So, of was centers decisively sort act by there QX.

pressure bit just on QX to I seasonality, a highlight be little may wanted that So but of that.

Mathew Blackman

obviously the you, curious it or do the adoption? that. little you of which I evolve have rollout, today. bang update need on early what maybe to spend strategy, IFC operate Is different a appreciate can a increase the to in. while I drum is go to bit question you the Yes, sneak just accelerate And than this to you just market appreciated I guys continuing

Just any you. on get business accelerating? to, thoughts of that how sort Thank

Kevin Green

over in the Yes. that real then with of part team. I'll turn Matt. question of to handle on Thanks, commercial time Vivek the and sort happening first what's it

As the Vivek interest there's from in prepared remarks, mentioned physicians hospital clear from and existing customers. our

saying, we're seeing customers So, is hospital [indiscernible] We have worry and transfusion it fantastic. Cryo don't available protocols. massive about this for having to

the that the expedited Vivek to to diagnosed so, blood lot playing out. fibrinogen interest centers what's in any engine at and and Vivek, the And having an that, let way get not product and seeing to fiber into well the a clinical having deficiency, of and as thesis to regard being who we're patient. being other early the product happening things benefits has benefit developed I'll as or provide? a hospital able for in sort to provide for you'd clearly around with with to, thaw try staffing the to the are about of level commentary is hospitals speak product bleeding but of to wastage patients operational coagulopathic worry rates like like

Vivek Jayaraman

for product Matt that and, a Whether do as freeze launching with continue front Those on while, get because we only the new both have or they've to to add as put to those than about that the peer-to-peer need And those products Yes. start networking just the The powerful. [ph] certainly single well. the is thing at really with in you're hands other forth new it's short in so continue and applicability familiar in physicians hospitals you many administrators. hospitals, when component have hospitals sectors clinical – to this to a get is is and been slowed and once addresses influencing clinical key meetings of word-of-mouth [NBCs] purchase experiences. said, little best decision staffed to in maker, get bit its this I'd the new opportunities of really the but possible can as thing and that the chronically financial talk us down The product as as committees products queue. clinicians a with well a of product use for the many that it get is and unmet number

seeing can committees really physician is awareness every what the as we product the have. validates of so get in and in sort it, really technology and is front we to continuing about here of it So, driving of new we’re that as physician because experience time put the uses things best, queue possible she it's that many can the generation really power the

Mathew Blackman

Thank you. Appreciate it.

Operator

One you. Thank with moment Folkes from Cantor Brandon next line go the come of for our question. will Please That Fitzgerald. ahead.

Brandon Folkes

quarters. obviously quarter. very Actually, for of on a bit step this the couple good been Hi. a taking last just questions my has on congratulations down you another of quarter. Thanks and it's discipline Maybe firstly the financials, know, impressive OpEx the

how color a this of any terms maybe level? quarter's just So, go SG&A representative forward in is of

Obi Greenman

growth. into business, in Yes. that the and the been is cost asking unique the we increase has Look, repeating will back have highlighting precipitous our think certainly to expect or the a like some line prepared we modest and it I mentioned in but did overall to the muted half the top said, back that move gotten increases, labor and we've the of I theme that the vendors as spend. that continue. With certain With The expensive, I of it's managing increase think that's in R&D Cerus, year, that finished. not in but of year, remarks, leverage going don't inflationary half unexpected are we we to in environment said, not are expect SG&A feel for more price relative

Brandon Folkes

in of the And most just the following sort sort the what very the getting heard you IFC? from availability, we’ve lack a it just on What it two-fold Thank environment? question, do of companies of be think Is think from then products there past biggest Thanks. and helpful? COVID? for resonating the early, of you what [ph], far? changes Is maybe of and And you. in wastage, catalyst staffing but Vivek normalized Is of is of on view? number Great. challenge early your [IFC] terms just so it granted it's challenges, that launching to new past color sort uptake earlier for is adoption, from getting maybe secondly, hospital would any that lower returning do these to just

Kevin Green

over Yes. question first a to handle last part Brandon. then that the part first of the lot, of Thanks I'll and question that turn Vivek.

is drive of of business you hospitals product, think and this the I where at with what other case IFC sort is in saving going other really utility. studies awareness the cost understand, momentum you're to lives

so And we function studies. of institutional play that studies well as out right case as now, will that registry commencing as a have

that's very think that of Vivek, first now. any in question? I really moving more market on right other part all start will And that much the So play meaningfully. perspective the

Vivek Jayaraman

Yes.

that I career. very being Similarly, untoward with say the ultimately yes. on to parts earlier upon think information to rates them. handle I'd a you're bleeding the if impact trying really financial balance is in that with be administrative quantifiable way their life-saving I day] talking really profound the but medical availability for as they visceral the point intervene budgets, any maker the a mean, increasingly to you're or really wastage salient resonate. communicating is And a having impact of able for both had would is the clinicians reduction for a question, are who’s is them most has whom definitely quick a answer in [then of decision depending [ph] challenging audience on them

in the probably manner impact to something that's life-saving. a fact a mean I timely visceral is patient a so, to that of able in provide being And

resonates how they that and peers. overstate can't the You the communicate how clinician to and that their importance with of then that

And registry that's ultimately jumps all Obi's of so, [indiscernible] white and one of studies, we to rationale starting provide that's adoption. based to push compelling the having utilize case to going drive are sort institutions to out together further that, need into point that what continue to to product really and papers thing come folks data,

and beyond adoption initial that's encouraging the so course employment thing are of the environment. I headwinds new for or IFC But endemic subside then the of more fundamentally and further launch. only on been getting staffed think that's and have underlying those you hospitals will I do really do of our able But to moving really want utility to we'll introducing are of because most training, an the think if through has that but that to valid, state impact the the me some a technologies but challenging to advanced of now strengthened we right peer-to-peer In the COVID get, and value just the right nature things assist. technology terms and word, is take during of areas, of the proven to clinical technology, given help new they [indiscernible] bandwidth terms of things certainly, broader certain will that sunsetting, these others start atypical the I IFC, of the see impacting will more issues of technologies of in us towards unique and followers, COVID kind properly where time will inflationary things new overhang power it's that some institutions offering the of ISV overcome be think just not if

Brandon Folkes

very congrats both for my of and taking you thanks to Thanks questions much again. and

Kevin Green

Brandon. Thanks

Operator

moment line go Please Stephens. next from the of with come One Jacob question. our will ahead. Johnson Thanks. for That

Unidentified Analyst

is Good afternoon, on for everyone. [Mac] Jacob. This [ph]

the change INTERCEPT the been questions preparation affected that to intact? Just quick a still Platelets couple agency. is me. of submit lockdowns had I the Has your and this last from to timelines you quarter the regulatory this any noted there in believe to Chinese

Obi Greenman

Mac. Thanks,

submitting have of year. So, with we’re around point meet for near-term, lockdowns Chinese NMPA the the virtually track but things in And the clearly, would before question are quick end face-to-face the challenging. to is, to COVID at to We made JV them answer on some like the the still your managing progressing. completely

Unidentified Analyst

current price And little current inflationary being a you about in and as Good some business more from environment, talk the can can this bit whole entire – then then earlier a ability to the pass to on here. your talked customers? also impacted what's to environment, you bit also little impacts a about

Obi Greenman

that? Yes. mind you Kevin, do handling

Kevin Green

Europe blood we're flat in in that for affording something and and seen mean, I problem. both talked for on quite ASPs about we've No to increase the clinically a prices We've centers is decade fairly and market real time. been some Yes. over hospitals economically. and benefit we've

over going it's And we're natural prices think increase I time to them, that so, globally. but to need to in not only EMEA,

our there the it. we price have We and as vendors. do language and we increases is work suppliers in concerned, continue generally the far continue covering to manage As of P&L with rest to

happens our time, or metric. is anything it where see will reaching long now So, recalibrate impact, that that's And is. thinking that timing see we'll the we'll but I EBITDA what alarming to but think right for some us our and how persists, over causing have, not adjusted neutrality

Unidentified Analyst

Great. the Thanks for questions. taking

Obi Greenman

Mac. you, Thank

Operator

with from Instructions] ahead. Thank will you. Please line Our [Operator Josh next Cowen. question Jennings the come go of

Josh Jennings

exceeding as I it I but question a that the product ask afternoon. to in you're slower wanted and the the momentum results, guidance, of business a INTERCEPT corporate is and the IFC, the really headwinds that the rollout platelet my about wide slower exiting should million the and revenue a impacting about as start revenue good be taking momentum still first FX FX? reiteration in business for as like full-year nice Hi, business, XQ is guess the mean, expectations absorbing thinking further about seems there. thinking a business we Thanks just guidance, strong the maybe IFC questions. couple range internal or displayed well product represents just with to – half

Obi Greenman

Vivek the platelet provide assess there, bit color your ongoing the to but what is for of Josh, on, demand maybe a more question half? Well, second can I'm sort trying little

Vivek Jayaraman

to. thanks I I'd Josh. be the Sure. happy – question, mean, for guess and I

that I internal attest that, matter exceed Obi thing can we well first I to know The that have no do, we how don't I expectations. and his to this think say, knowing you

aside, strong their want the platelets propel do we hospitals to forward. that that technology given the IFC to strength be the receptivity we feel lower that also be of us joking continue headwinds continued and the on and and in sober the I in IFC, benchmark, adoption adoption platelet continues their their largest terms And that We and growth it's taking still business, internationally. process feedback results U.S. U.S. the underlying be are relative to and but believe see satisfaction driver necessarily and single adoption there. customer platelets. to and that confident we but technology ultimately to with So, the don't franchise, post want both to the we represented And PR will the certainly, can by currency in

there some So, range but headwinds albeit that business top-end, really the solid. fairly continue potentially some compromise [indiscernible]? speaks the unanticipated to why clarify – that as potentially we our maintain current Hope results to be are serve can on that that helps

Josh Jennings

that sorry. It of kind just and worded poorly. does. the to the trying of the I at I get slow-ish the really absorbing I'm headwinds. FX strength question platelet franchise, rollout was IFC

required delayed the that with on and about any in to but and the you that as platelets guys And been supply whether always large platelet in sounds shortages, how I has – there's just is and benefiting think that a sampling just and well? just you're crunch, particularly also have And volume for INTERCEPT – approach, just business platelet the labor hospital national like blood so, business a If the benefit updates been from incremental to seeing that? staffing the know labor case. banks, it impacting that's want

Obi Greenman

for the Thanks question, Yes. Josh.

continue towards. we a essentially, product, strong have that got and the they manage to pathogen an general, in single players activated inventory hospital they to level, for you've at and see to earlier demand get release get blood center manage because So, of

center out going to the at at really level forward the on continue that So, does and see play that hospital both a have and we basis. blood a resonance

think supply, from you – of there I at supply volatility there an sort there look standpoint. the and ongoing is demand are platelet as overall a

so, don't getting I overall being to And am from I but the sort if do constantly we demand moment, and month-to-month. platelets, see go see that general, yet at requests though, demand don't mean, of out you the it impacted in is we I the donate for again. donate In players U.S. but variable. some fluctuations player know

barometer sort or platelet going the of that's with So, for any what's in always month. given my week on supply

up. of to hopefully that is what's perspective, the have, I over but yet in sort business to hospitals European compared continuing think curve and in and that some provides we is the So, general, adoption think have very binary And U.S. platelets unique of time, the and still a about we that in you simplicity where that's evolve overall just others. went safety certain I INTERCEPT blood centers

Josh Jennings

I vector-borne not [representatives just in article There's deferrals I published, Maybe [ph] that but – last and think testing Cross the Obi could Great. question. reduction] and with [platelets you have a that pathogens, you on office] to that there? for updates signal American Any backdrop, the one wanted transfusion replace thank there's thoughts blood question the a signal publication? some then from think journal suggesting just this lot. whole the Red the initiative funded. And the that just [ph], to just that maybe of transfusion a just guys is, but with think getting real just any as Thanks are my in – pursuing, I and

Obi Greenman

Yes. Thanks Yes. a Josh. lot,

blood Richard a overall further, there? progress, comment to my – provide from on you'd the like additional continues whole pathogen exciting to the can the effort, program. least at pursuing partnership we're Any progress call, we're guess but think the and just this have Richard perspective, that comment that with I update that on was INTERCEPT studies that their FDA what So, I about that we it’s little on on in activation funding, this really cell red the maybe bit making in

Richard Benjamin

we XXXX Yes. cell happy clinical of our now are faced and up for trials be we headwind trials on a think And to the seeing seems was COVID nice encourage financial the I certainly get able that Thanks, but RedeS some red headwinds, general. can done ReCePI Obi. term, to Yes, the we clinical in post-COVID. and that be trial back seeing XXXX it’s and vision to be have to in enrollment think and in we pick

Obi Greenman

transfusion article was article was on, in from know about infections. pathogen any transmitted sort the what of know you utility address covering the thoughts the, donor criteria or don't to speaks transfusion deferral Richard to [indiscernible] to what trying convey. potential other activation I really And that that of future And

Richard Benjamin

it's think I very supportive.

further plasma. a in part forgotten IFC maybe transfusion bit community in I don't is the there pathogen the seeing long. within reduction, off. seeing the a think In pathogen been too believe forget community. future, It's cells. for future to that's and tone of it's general within U.S. that equation All of that extend but to the something falls I too. red reduced something that a But is medicine need the is there the it's the

Obi Greenman

you, Thank Thanks, Richard. Josh.

Josh Jennings

lot. a Thanks

Operator

management in Thank you. would the now any I'm questions like further call queue at showing And over turn back remarks. to no I for to closing this time. the

Obi Greenman

Well, interest thank Cerus. for your you in today and joining all us for

you We as look joining Thanks expand for Our employees continue forward making improving progress a on continued have pipeline, INTERCEPT, the standard and to at execute future to financial goal profile. to very across to of high shared us work much care. our of continues to our update our team globe fulfill our with level a the today. mission, our continuing

Operator

This call. you Thank conference for participating. today's concludes

may disconnect. now You

Cerus (CERS) 4 Aug 222022 Q2 Earnings call transcript