Cerus Corp (CERS) - 3Q earnings report Oct 28, 2010

Cerus Corp (CERS) is scheduled to release its earnings report next week on Oct 28, 2010 AFTER the closing bell.  A live webcast will be hosted by the company at 4:15 pm ET.  The blood component-separation specialty biotech has been on a rising trend due to positive large-scale clinical study results and consistent expansion in product sales.

    "This [latest] study demonstrates that INTERCEPT can be implemented into routine practice, providing protection against transfusion-transmitted pathogens, without impacting either platelet or red blood cell utilization. This observation confirms previous data indicating that the treated platelets are functioning similarly to untreated platelets," said Dr. Laurence Corash, Cerus' chief medical officer.

"Post-earnings boost"
What followed each financial statement release in the past 4 quarters interestingly was always a 'post-earnings boost' in Cerus' stock as investors became more and more confident of the company's product market potential (read more about Cerus' INTERCEPT blood system).

With the next quarterly statement due next Thursday, today's 4.45% dip may represent a discount for those desiring to catch the pre-earnings ride.

Cerus' 1Q financial report on track with Company's objectives

64% Year-over-Year Revenue Growth


Shares up 10.75% before Company's press release

Cerus Corporation (CERS) today announced financial results for the first quarter ended March 31, 2010.

Total revenue was $5.7 million during the first quarter of 2010, up 64% from the $3.5 million recognized during same period in 2009. Product revenue for the INTERCEPT Blood System was $5.5 million during the first quarter of 2010, up more than 75% from the $3.1 million recognized during the same period in 2009. First quarter 2010 product revenue marks the fourth consecutive quarter of growth. Disposable kit sales to customers was the primary contributor to the year-over-year growth, representing almost 90% of product revenue during the first quarter of 2010. Government grant revenue in the first quarter of 2010 was $0.2 million, compared to $0.4 million in the first quarter of 2009.

Total operating expenses for the first quarter of 2010 were $6.5 million, down from $8.8 million for the same period in 2009. The decrease in operating expenses was due to the Company's focused cost minimization and full implementation of its restructuring plans initiated in March 2009.

Net loss for the first quarter of 2010 was $5.0 million, or $0.13 per share, compared to a net loss of $7.4 million, or $0.23 per share, for the first quarter of 2009.

At March 31, 2010, the Company had cash, cash equivalents and short-term investments of $19.0 million compared to $19.9 million at December 31, 2009. During the first quarter of 2010, the Company closed a $10 million growth capital facility, under which it drew $5.0 million. The facility provides for nine months of interest-only payments on each draw, followed by thirty months of principal and interest payments. The Company believes that cash used for operations during the first quarter was unusually high compared to expected quarterly cash usage for the remainder of the year, primarily due to non-routine working capital payments during the first quarter.

"We continue to make significant progress on growing our European platelet and plasma business while maintaining our financial discipline and controlling costs," said Claes Glassell, president and CEO of Cerus Corporation. "We believe we have the necessary capital in place to execute on our plan of driving that business to profitability."

RECENT HIGHLIGHTS:
- New record high quarterly sales of INTERCEPT, totaling $5.5 million
- Signed agreement with the Swiss Red Cross for full implementation of INTERCEPT in 11 of 13 blood centers
- Secured $10 million growth capital facility.

Cerus Corp. (CERS) to disclose 1Q finance on Apr 29

Cerus Corporation (CERS) will be reporting its first quarter 2010 financial records on Thursday, April 29, 2010, after the close of the stock market. A company conference call along with webcast will be held at 4:15 p.m. ET that afternoon, during which a general business overview and outlook will be given by the management. Broadly speaking, analysts expect CERS to post a loss of $0.10 per share on sales of $6 million. For the full year, CERS is expected to put forth a loss of $0.36 versus $0.21 on sales of $3 million in the year-ago period.

Technology

The INTERCEPT Blood System® for Platelets and Plasma


The INTERCEPT Blood System for platelets and plasma is a technology developed to eliminate a hosts of potential pathogens (viruses, bacteria, parasites) residing in donated blood to be used for transfusion. Cerus' system introduces chemical entities (amotosalen HCl and S-303) that targets the spaces between the DNA/RNA base pairs. Upon UVA illumination (amotosalen for use with platelets and plasma) or a change in pH (S-303 for use with red blood cells), the compunds crosslinks the two strands of nucleic acid and renders DNA/RNA replication inactive for pathogens. This process effectively blocks the growth and survival of harmful pathogens in the blood, thereby sterilizing the blood before transfusion while leaving plasma/platelets and red blood cells untouched (platelets and RBC do not require nucleic acid to function; plasma is acellular, consisting of proteins and liquid). The INTERCEPT Blood System for platelets and plasma has received CE marking and is presently being distributed for sale in Europe. Regulatory approval for the platelet and plasma systems has not been granted in the United States.




The INTERCEPT Blood System for Red Blood Cells

A two-armed Phase III clinical trial for red cells was terminated in 2003 when antibodies to treated red blood cells were detected in one patient in the chronic arm of the trial. Since then, the Company has created renewed processes such that the probability of antibody reactivity in red blood cells treated with this modified process is dramatically diminished. Findings related to the above improvements were presented in late 2004 and 2005 at several scientific and trade association meetings. Furthermore, the Company reported that, upon unblinding of the Phase III data, enpoints within the acute arm of the trial had been met. Based on the information available, Cerus has conducted additional preclinical and Phase I human clinical trials in the U.S. to test adjustments to the original process. In 4Q2008, the firm initiated a small Phase I clinical trial in healthy volunteers at two sites in the U.S. with a modified process, which was completed early in 2010. A Phase III clinical trial for the INTERCEPT red blood cell system is currently pending additional financing.

Convenience of Use

Cerus' INTERCEPT Blood System is devised to be simple and compatible with the operations of the world's blood centers. The system includes a UVA light source and a sterile disposable set pre-loaded with Helinx inactivation compounds (i.e. amotosalen). Over 450,000 INTERCEPT platelet and plasma kits have been shipped to date. The product has been applied in the clinic in Europe, Russia, the Middle East, Asia and in selected countries in other regions around the world.

Opinion & Alert

As always, it is critical to zoom in on the market value of the technology of interest before deciding to partake in a company's future. Cerus, a specialist in pathogen inactivation of donated blood, previously informed shareholders of third consecutive quarter of revenue growth and narrowing losses. Each year in the United States alone, more than 14 million units of blood are transfused. With the sizable volume of blood passing from donors to recipients, contaminated blood supplies can be a genuine threat for people receiving that blood. As such, there is an indisputable need for a technology that could offer a dependable and cost-effective way to clean blood and blood products. This technology would significantly reduce the costs associated with the screening process and alleviate blood shortage due to expansion of donor pools. Countries in Europe, including France, have entered into agreements to facilitate the development of the INTERCEPT system for red blood cells, which may tap into the multibillion-dollar business of transfusion blood sterilization, foreshadowing Cerus' success in clinical trials.


The upward trending stock prices as well as the promising advancement of the INTERCEPT system for both plasma/platelets and red blood cell should encourage investors to establish a long position in CERS before the release of the Company's financial report on Thursday (Apr 29, 2010), after which a jump in share prices will sure be notable if earnings outshine analysts' expectations.


*Source of figures: http://www.cerus.com/index.cfm/ProductOverview/How_INTERCEPT_Works