Press Release Details

Cerus Corporation Announces Fourth Quarter and Year-End Financial Results

February, 21 2008
CONCORD, Calif.--(Business Wire)--
Cerus Corporation (NASDAQ:CERS) today announced results for the
fourth quarter and year-ended December 31, 2007.

   Total revenue for the three months ended December 31, 2007, was
$2.4 million, derived entirely from product sales. Revenues recognized
in the fourth quarter of 2007 did not include $1.5 million in deferred
product revenue booked in the fourth quarter. Total revenue in the
fourth quarter of 2006 was $13.7 million, of which $926,000 was from
product sales. The remaining $12.7 million in revenue recognized in
the fourth quarter of 2006 consisted of $12.2 million of milestone
payments from BioOne and development funding under agreements with
Baxter recognized during the quarter, as well as $562,000 in
government grant funding. Cost of product sales was $1.7 million in
the fourth quarter of 2007, up from $705,000 in the fourth quarter of
2006. Cost of product sales in the fourth quarter of 2007 included
royalties payable to Fenwal. Under agreements with Baxter, the Company
paid no royalties on product sales in 2006. Total operating expenses
for fourth quarter of 2007 were $11.6 million, up from $8.1 million in
the fourth quarter of 2006, primarily due to higher selling, general
and administrative expenses associated with the Company's
commercialization efforts of the INTERCEPT Blood System in Europe.

   Net loss from continuing operations in the fourth quarter of 2007
was $10.2 million compared to a net profit from continuing operations
of $5.7 million for the comparable period in 2006. Net loss from
discontinued operations was $1.2 million in the fourth quarter of 2007
compared to a net loss from discontinued operations of $2.7 million in
the fourth quarter of 2006. Net loss for the fourth quarter of 2007
was $11.4 million, or $0.36 per share, compared to net income of $3.0
million, or $0.10 per share in the fourth quarter of 2006.

   Total revenue for the year ended December 31, 2007, was $11.0
million, compared to $30.3 million in 2006, when $22.5 million of
milestone payments from BioOne and development funding under
agreements with Baxter were recognized. The Company recognized no such
revenue in 2007. In addition, the Company recognized $1.8 million less
in government grant funding in 2007 as compared to the prior year.
However, product revenue for the INTERCEPT Blood System increased to
$8.0 million during 2007, up 169% from $3.0 million during 2006. The
Company also booked $1.5 million in deferred product revenue resulting
from sales activity during the fourth quarter. Cost of product sales
was $5.2 million in 2007, up from $1.5 million in 2006. Cost of
product sales in 2007 included royalties payable to Baxter, then
Fenwal. Under agreements with Baxter, the Company paid no royalties on
product sales in 2006. Total operating expenses for 2007 were $49.0
million, up from $31.1 million in 2006, primarily due to higher
selling, general and administrative expenses associated with the
Company's commercialization efforts of the INTERCEPT Blood System in
Europe, and a $9.5 million non-cash write-down of the Company's equity
holding in BioOne taken in the second quarter of 2007.

   Net loss from continuing operations for 2007 was $39.1 million
compared to net profit from continuing operations of $2.4 million for
2006. Net loss from discontinued operations was $6.2 million in 2007
compared to a net loss from discontinued operations of $7.1 million in
2006. Net loss for 2007 was $45.3 million, or $1.42 per share,
compared to a net loss of $4.8 million, or $0.18 per share in 2006.
The Company ended the year with cash and marketable securities of
$56.9 million, reflecting a cash burn of $36.6 million over the course
of 2007.

   Historically, Cerus has reported financial performance in two
segments: blood safety and immunotherapy. In addition to direct
segment revenue and cost of revenue, the Company also allocated direct
and indirect research and development and selling, general and
administrative expenses to its segments. In the fourth quarter of
2007, the Company spun off its immunotherapy business into a newly
formed company funded by leading venture capital firms. As a
consequence of the spin-off, financial results for all past periods
have been restated to reflect the Company's immunotherapy business as
a discontinued operation. Included in the discontinued operation are
immunotherapy revenue, cost of revenue, and direct and indirect
research and development expenses related to that segment. The
continuing operations includes the blood safety revenue, cost of
revenue, direct and indirect research and development expenses of that
segment and all selling, general and administrative expenses for both
segments. As of mid-October, the Company no longer funded operations
of the immunotherapy business.

   "We are pleased to have completed the spin-off of our
immunotherapy business and to be a focused blood safety company," said
Claes Glassell, president and chief executive officer of Cerus
Corporation. "Now the measurement of our success is sales growth in
Europe, regulatory progress in the U.S. and clinical advancement for
our red blood cell program. We are pleased with the momentum that we
gained in 2007. We look forward to a productive 2008."

   Highlights from the fourth quarter and recent developments
include:

   --  Continued commercial progress in Europe and the Middle East;

   --  The FDA indicated that it will consider data from commercial
        use in Europe, as an alternative to a new Phase III trial, for
        potential approval of the platelet system;

   --  The Advisory Committee on Blood Safety and Availability
        recommended implementation of pathogen inactivation in the
        United States;

   --  Filed for regulatory approval of the platelet and plasma
        systems in Switzerland;

   --  Advanced the red blood cell program; and

   --  Successfully spun-off the immunotherapy business.

   Quarterly Conference Call

   The Company has scheduled its quarterly conference call for 4:30
p.m. Eastern time today. To access the webcast via the internet, log
on to www.cerus.com. Please connect to the Company's website at least
15 minutes prior to the conference call to ensure adequate time for
any software downloads. Alternatively, you may access the live
conference call by dialing 877-407-0782 (U.S.) or 201-689-8567
(International). A telephone replay will be available approximately
two hours after the call through 11:59 p.m. EST, February 28, 2008. To
access the replay, please call 877-660-6853 (U.S.) or 201-612-7415
(International) and enter account number 286 and conference ID number
274491. The webcast will be archived on www.cerus.com through March
21, 2008.

   ABOUT CERUS

   Cerus Corporation is a biomedical products company focused on
commercializing the INTERCEPT Blood System to enhance blood safety.
The INTERCEPT Blood System is designed to inactivate blood-borne
pathogens in donated blood components intended for transfusion. Cerus
currently markets the INTERCEPT Blood System for both platelets and
plasma in Europe and the Middle East. The Company is also pursuing
regulatory approvals in the United States and other countries. The
INTERCEPT red blood cell system is currently in clinical development.

   INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus
Corporation.


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

                               Three Months Ended Twelve Months Ended
                                  December 31,        December 31,
                               ---------------------------------------
                                  2007      2006      2007      2006
                               ---------- --------   -------- --------
Revenue:
  Product revenue               $  2,395  $   926   $  8,015  $ 2,975
Government grant and
  cooperative agreements              --      562      3,029    4,836
Milestones and development
  funding                             --   12,168         --   22,499
                               ---------- --------   -------- --------
    Total Revenue                  2,395   13,656     11,044   30,310
                               ---------- --------   -------- --------

Cost of product revenue            1,664      705      5,228    1,541
                               ---------- --------   -------- --------
    Gross Profit                     731   12,951      5,816   28,769


Operating expenses:
Research and development          4,126    3,930     14,957   16,036
Selling, general, and
  administrative                   7,471    4,149     24,575   15,082
  Impairment of long-term
   investment in related party        --       --      9,450       --
                               ---------- --------   -------- --------
   Total operating expenses       11,597    8,079     48,982   31,118
                               ---------- --------   -------- --------
Income (Loss) from operations    (10,866)   4,872    (43,166)  (2,349)
Interest income and other, net       648      865      4,066    4,701
                               ---------- --------   -------- --------
Income (Loss)from continuing
operations before income taxes  (10,218)   5,737    (39,100)   2,352
Income taxes                         --       --         --       --
Net income (loss)from
continuing operations          $(10,218) $ 5,737   $(39,100) $ 2,352
                               ========== ========   ======== ========

Discontinued operations:
Loss from discontinued
  operations                        (828)  (2,727)    (5,820)  (7,131)
Loss from sale of discontinued
  operations                        (384)      --       (384)      --
                               ---------- --------   -------- --------
    Net loss from discontinued
     operations                   (1,212)  (2,727)    (6,204)  (7,131)
                               ---------- --------   -------- --------
Net income (loss)               $(11,430) $ 3,010   $(45,304) $(4,779)
                               ========== ========   ======== ========

Net income (loss) per share:
Basic                          $  (0.36) $  0.10   $  (1.42) $ (0.18)
Diluted                        $  (0.36) $  0.10   $  (1.42) $ (0.18)

Weighted average common shares
outstanding used for basic and
diluted income (loss) per
share
Basic                            32,060   28,800     31,870   26,870
Diluted                          32,060   30,180     31,870   26,870
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                          CERUS CORPORATION
           CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
                            (In thousands)

                                            December 31,  December 31,
                                                2007          2006
                                            ------------  ------------

Cash, cash equivalents, and short-term
investments                                  $   56,850    $   93,416
Accounts receivable and other current assets       9,990         7,494
Inventories                                        7,062         1,833
Property and equipment, net                        1,322         1,627
Other assets                                       2,985        11,447
                                               ---------     ---------
     Total Assets                             $   78,209    $  115,817
                                               =========     =========

Accounts payable and accrued liabilities      $   16,786    $   14,144
Deferred gain                                         --           586
Deferred revenues                                  1,504            --
Other current liabilities                             30            84
Other long-term liabilities                            2            32
                                               ---------     ---------
   Total liabilities                              18,322        14,846
                                               ---------     ---------
Stockholders' equity                              59,887       100,971
                                               ---------     ---------
     Total liabilities and stockholders'
      equity                                  $   78,209    $  115,817
                                               =========     =========
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Cerus Corporation
William J. Dawson, 925-288-6053
Vice President, Finance & CFO
or
Vida Communication (On behalf of CERUS)
Stephanie Diaz, 415-675-7401

    Global Headquarters

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

    European Headquarters

  • Stationsstraat 79-D
  • 3811 MH Amersfoort, Netherlands
  • +31 (0) 33 49 60 600