Press Release Details

Cerus Corporation Announces Fourth Quarter and Year-End Financial Results

February, 23 2006

CONCORD, Calif.--(BUSINESS WIRE)--Feb. 23, 2006--Cerus Corporation (Nasdaq:CERS) today announced results for the fourth quarter and year-ended December 31, 2005.

Revenues for the fourth quarter of 2005 were $5.6 million, up from $3.0 million for the fourth quarter of 2004, primarily due to amounts recognized in the current period from the amortization of past up-front payments from BioOne Corporation and MedImmune, Inc., for which revenue recognition was deferred, as well as from higher funding from the U.S. Armed Forces. Total operating expenses for the fourth quarter of 2005 were $9.0 million, up from $7.3 million for the same period in 2004, due primarily to increased preclinical activities associated with our immunotherapy programs.

Net loss for the fourth quarter of 2005 was $3.9 million, or $0.17 per share, compared to a net loss of $5.4 million, or $0.24 per share, for the fourth quarter of 2004. The lower net loss in the current period reflects both increased third-party funding for research and development programs and a significant reduction in interest expense as a result of a substantial reduction of an outstanding loan from Baxter Capital, offset somewhat by increased operating expenses.

For the twelve months ended December 31, 2005, total revenues were $24.4 million, compared to $13.9 million for the same period in 2004. Net income was $13.1 million, or $0.55 per diluted share for the twelve months ended December 31, 2005, compared to a net loss of $31.2 million or $1.41 per share for that same period in 2004. Net income for the twelve-month period in 2005 includes a one-time gain of $22.1 million recognized in February 2005 as a result of the loan settlement. At December 31, 2005, the company had cash, cash equivalents and short-term investments of $45.8 million.

"We have made important progress over the past year," said Claes Glassell, president and CEO of Cerus Corporation. "In 2005, we set very ambitious goals and I'm proud to say we've accomplished them all. As we move forward in blood safety and immunotherapy, I am confident our team is well positioned to successfully advance both programs."

    Highlights for the year include:

    --  Restructuring Baxter collaboration and settling loan dispute.
        This agreement resulted in a $22.1 million gain to Cerus and
        an additional $13.1 million in Baxter funding for
        commercialization of INTERCEPT platelets and plasma in Europe.

    --  Entering agreement with BioOne Corporation for
        commercialization of INTERCEPT Plasma in Japan and other Asian
        territories. Cerus realized upfront payments of $5.0 million
        in cash and $5.0 million in BioOne equity, plus potential
        future milestones and payments in excess of $23.0 million.

    --  Submitting IND application to FDA for CRS-100, a
        Listeria-based immunotherapeutic designed to treat patients
        with cancer that has metastasized to the liver. Earlier this
        month, Cerus received FDA clearance to proceed with its
        clinical trial and, subject to requisite study site approvals,
        Cerus plans to initiate Phase I in the first half 2006.

    --  Submitting CE mark application for European approval of the
        INTERCEPT Blood System for plasma.

    --  Announcing decision to re-enter Phase I clinical trials for
        INTERCEPT red blood cell program. Cerus is targeting
        enrollment of first subject mid-year.

    --  Publishing of cover story in Nature Medicine describing our
        proprietary Killed but Metabolically Active, or KBMA, vaccine
        platform. This platform is designed to combine the potency of
        live vaccines with the safety of killed vaccines.

    --  Funding of consortium led by University of New Mexico for work
        on Tularemia. One of the consortium's goals is to develop a
        Tularemia vaccine based on our KBMA platform. Cerus will
        receive $2.8 million of research funding over three years.

In addition to the 2005 accomplishments, Cerus announced last week that it gained remaining worldwide commercial rights to the INTERCEPT Blood System for platelets and plasma from Baxter, excluding certain Asian countries in which rights have previously been granted to BioOne Corporation.

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 developing novel products for cancer, infectious disease and blood safety based on multiple, innovative technology platforms. The Company is building a pipeline of next generation cancer immunotherapies by combining its proprietary attenuated Listeria vaccine platform with promising disease antigens. These products are designed to stimulate innate and adaptive immune pathways, generating highly specific and highly potent anti-tumor responses. The Company's KBMA vaccine technology has potential broad applications against multiple pathogens. Cerus is developing and marketing the INTERCEPT Blood System, which is designed to enhance the safety of blood components through pathogen inactivation. The Company's strategy is to leverage the broad potential of its technologies and products both on its own and through alliances. Cerus' collaborators include MedImmune and investigators at The Johns Hopkins University for cancer immunotherapy, and BioOne for the INTERCEPT Blood System.

INTERCEPT and INTERCEPT Blood System are trademarks of Cerus Corporation.

Statements in this news release regarding statements concerning potential efficacy and safety of products, potential regulatory approvals, clinical trial activities, product development, contractual payments and equity issuances and commercialization 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 risks and uncertainties related to the initiation, timing and results of clinical trials and other development activities, the acceptability of any data by regulatory authorities, actions by regulatory authorities and other government authorities, including the FDA and foreign counterparts, at any stage of the development or marketing process, technological advances in the medical field, additional financing activities, manufacturing, product demand and market acceptance and adoption of any products, competitive conditions, internal and external factors that could impact commercialization and other factors discussed in each company's filings with the Securities and Exchange Commission. The companies do not undertake any obligation to update any forward-looking statements as a result of new information, future events, changed assumptions or otherwise; all forward-looking statements speak only as of the time when made. Actual results or experience could differ materially from the forward-looking statements.


                           CERUS CORPORATION
             CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
              (In thousands except per share information)


                               Three Months Ended  Twelve Months Ended
                                  December 31,         December 31,
                               ------------------  -------------------
                                 2005      2004      2005      2004
                               --------  --------  --------- ---------
Revenues
  Milestones and development
   funding                     $ 2,878   $ 2,226    $11,697  $  4,187
  Government grant and
   cooperative agreements        2,642       733     12,189     9,724
    Product revenue                 90        --        485        --
                               --------  --------  --------- ---------
       Total Revenues            5,610     2,959     24,371    13,911
Operating expenses
  Research and development       6,578     5,073     24,134    27,651
  General and administrative     2,380     2,274      9,578    10,225
  Restructuring                     --        --         --     2,861
                               --------  --------  --------- ---------
       Total operating
        expenses                 8,958     7,347     33,712    40,737
                               --------  --------  --------- ---------
Operating income (loss)         (3,348)   (4,388)    (9,341)  (26,826)
Interest income (expense) and
 other, net                       (546)     (964)    22,405    (4,327)
                               --------  --------  --------- ---------
       Net income (loss)       $(3,894)  $(5,352)   $13,064  $(31,153)
                               ========  ========  ========= =========

Net income (loss) per share:
  Basic                        $ (0.17)  $ (0.24)   $  0.58  $  (1.41)
  Diluted                      $ (0.17)  $ (0.24)   $  0.55  $  (1.41)

Weighted average common shares
 outstanding used for basic
 and diluted income (loss)
 per share
  Basic                         22,430    22,211     22,350    22,143
  Diluted                       22,430    22,211     23,950    22,143





                           CERUS CORPORATION
                  CONDENSED UNAUDITED BALANCE SHEETS
              (In thousands except per share information)


                                            December 31,  December 31,
                                                2005         2004
                                            ------------  ------------

Cash, cash equivalents, and short-term
 investments                                  $45,805      $ 95,334
Accounts receivable and other current
 assets                                         5,200         4,537
Furniture and equipment, net                    1,235           947
Other assets                                    6,420         1,260
                                            ------------  ------------
     Total Assets                             $58,660      $102,078
                                            ============  ============

Accounts payable                              $ 2,092      $  1,476
Current loan and interest payable               4,826        34,500
Deferred gain on loan settlement                   --        22,089
Deferred revenues                              11,135        13,217
Other current liabilities                       5,264         4,807
Long-term note payable                             --         4,500
Other long-term liabilities                        68            --
                                            ------------  ------------
   Total liabilities                          $23,385      $ 80,589
                                            ------------  ------------
Stockholders' equity                          $35,275      $ 21,489
                                            ------------  ------------
     Total liabilities and stockholders'
      equity                                  $58,660      $102,078
                                            ============  ============


    CONTACT: Cerus Corporation
             Ruey-Li Hwang, 925-288-6017

    SOURCE: Cerus Corporation

    Global Headquarters

  • 1220 Concord Avenue
  • Concord, CA US 94520
  • +1 925.288.6000

    European Headquarters

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  • 3811 MH Amersfoort, Netherlands
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