Cerus first quarter total revenue is $6.6 million for 2011

Apr 28 2011

Cerus Corporation (NASDAQ: CERS) today announced financial results for the first quarter ended March 31, 2011.

Total revenue was $6.6 million during the first quarter of 2011, up 16% from the $5.7 million recognized during same period in 2010. Product revenue for the INTERCEPT Blood System was $6.2 million during the first quarter of 2011, up 12% from the $5.5 million recognized during the same period in 2010. Disposable kit sales to customers drove the year-over-year growth. INTERCEPT disposable kits sold during the first quarter of 2011 represented over 90% of reported product revenue. Government grant revenue in the first quarter of 2011 was $0.4 million, compared to $0.2 million in the first quarter of 2010.

"Our first quarter results provide a solid start toward achieving our guidance of 20% total revenue growth in 2011. The year-over-year growth in sales of our disposable kits is a healthy sign of increasing demand," said William M. Greenman, president and CEO of Cerus Corporation. "We also believe 2011 will be an important year for our development programs, as we prepare for Phase III trials of the INTERCEPT Blood System for red blood cells in Europe and work with the U.S. Food and Drug Administration to clarify approval pathways for all three INTERCEPT programs."

Total operating expenses for the first quarter of 2011 were $7.4 million, up from $6.8 million for the same period in 2010. Development work on the red blood cell system was the primary driver of the increased operating expenses, particularly research and development expenses. Research and development expenses are expected to increase modestly over the coming quarters as the Company moves closer to initiation of the Phase III trials of the INTERCEPT Blood System for red blood cells.

Net loss for the first quarter of 2011 was $5.0 million, or $0.11 per share, compared to a net loss of $5.3 million, or $0.14 per share, for the first quarter of 2010.

At March 31, 2011, the Company had cash, cash equivalents and short-term investments of $24.4 million, compared to $30.0 million at December 31, 2010. Cash used for operations during the first quarter of 2011 was higher than the quarterly rates seen in 2010. This was in part a result of certain charges relating to Cerus' acquisition of BioOne Corporation, which were accrued for in 2010 and paid during the first quarter of 2011 and the Company's purchase of additional inventory in anticipation of increased demand for its products.

Source: Cerus Corporation