Press Release Details

Cerus Corporation Announces First Quarter Results

April, 21 1999
Cerus Corporation (Nasdaq: CERS), a leading developer of systems to inactivate pathogens in transfused blood components, today announced results for the quarter ended March 31, 1999.

Net revenues from development agreements and government grants for the quarter were $0.7 million, compared to $1.6 million for the first quarter of 1998. The net loss for the first quarter was $4.5 million, or $0.48 per share, compared to a net loss of $3.6 million, or $0.39 per share, for the first quarter of 1998. At March 31, 1999, the company had cash, cash equivalents and short-term investments totaling $25.4 million. Subsequent to March 31, 1999, the company completed a public offering with net proceeds of $43.4 million and completed a $2.0 million milestone-based private placement with Baxter Healthcare. At April 15, 1999, the company had cash, cash equivalents and short-term investments totaling $70.2 million.

“Year to date, we have raised nearly $55 million to support our five programs in development,” said Cerus president and chief executive officer Stephen Isaacs. “In addition to our public offering and the milestone-based investment, Baxter purchased $9.5 million of convertible preferred shares that may be redeemed at our option. We believe that we are now well positioned financially to move forward into our pivotal Phase 3 clinical trials for our platelet and plasma pathogen inactivation systems.”

Cerus Corporation is developing systems designed to enhance the safety of blood transfusions by inactivating pathogens in blood components (platelets, plasma and red blood cells used for transfusion) and by inactivating white blood cells, which are responsible for a variety of adverse transfusion reactions. The company's platform technologies, which prevent viral, bacterial and cellular replication, may have potential applications in the health care field beyond pathogen inactivation in blood components.

Cerus Corporation is collaborating with the Fenwal Division of Baxter Healthcare Corporation to develop, manufacture and market pathogen inactivation systems for blood components used for transfusion. Baxter, a global medical products and services company, focuses on critical therapies for life-threatening conditions. Baxter is a leader in technologies related to blood and the circulatory system. The Fenwal Division develops, manufactures and markets products and services for the collection, separation, storage and transfusion of blood and its components.

Statements in this news release regarding clinical development are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the above forward-looking statements as a result of certain factors, including the uncertainty of the timing and results of any trials, regulation by the FDA, the uncertainty of replication of animal data in humans, the uncertainty of market acceptance of any products, competitive conditions, the uncertainty of future financing and other factors discussed in the company's 1998 Annual Report on Form 10-K.

Cerus Corporation
Selected Financial Information

Condensed Statements of Operations
(in thousands, except per share information)(unaudited)

 
Three Months Ended
 
March 31,
 
1999
1998
Revenue
$ 744
$ 1,612
Operating expenses:  
Research and development
4,462
4,456
General and administrative
1,023
1,021
Total operating expenses
5,485
5,477
Loss from operations
(4,741)
(3,865)
Interest income, net
255
293
Net loss
$ (4,486)
$ (3,572)
Net loss per share
$ (0.48)
$ (0.39)
Shares used in computing
net loss per share
9,421
9,222


Condensed Balance Sheets

(in thousands)

 
March 31, 1999
Dec. 31, 1998
 
(unaudited)
 
Cash, cash equivalents and short-term investments
$ 25,446
$ 19,802
Other current assets
365
312
Furniture and equipment, net of depreciation
697
725
Other assets
92
95
Total assets
$ 26,600
$ 20,934
 
Accounts payable to a related party
$ 12,839
$ 12,719
Other current liabilities
7,206
6,859
Capital lease obligation, less current portion
10
12
Redeemable convertible preferred stock
5,000
5,000
Stockholders' equity (deficit)
1,545
(3,656)
Total liabilities and stockholders' equity
$ 26,600
$ 20,934

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