Cerus Corporation (CERS) Bundle
A Brief History of Cerus Corporation
Company Overview
Cerus Corporation, established in 1991 and headquartered in Concord, California, is a biomedical company focused on developing and commercializing innovative blood safety products. The company’s flagship product, the INTERCEPT Blood System, is designed to enhance the safety of blood transfusions and is utilized in various therapeutic applications.
Recent Financial Performance
As of September 30, 2024, Cerus Corporation reported significant financial metrics reflective of its operational progress. The total revenue for the nine months ended September 30, 2024, was $144.57 million, representing an 8% increase compared to $133.46 million during the same period in 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $50.66 million | $47.25 million | 7% |
| Product Revenue | $46.02 million | $39.77 million | 16% |
| Net Loss | $(2.93) million | $(7.29) million | 60% |
| Net Loss per Share | $(0.02) | $(0.04) | 50% |
Product and Market Expansion
The growth in product revenue is attributed primarily to increased sales volume of disposable platelet kits to U.S. customers. Cerus anticipates further expansion in product revenue due to heightened market acceptance of the INTERCEPT Blood System and ongoing commercialization efforts in various regions.
Research and Development Investments
Cerus Corporation continues to prioritize research and development, with expenditures amounting to $43.46 million for the nine months ended September 30, 2024, compared to $53.35 million in the same period of 2023. This 18% decrease reflects a strategic focus on operational efficiency while still advancing its product pipeline.
Government Contracts and Revenue
Government contract revenue for the nine months ended September 30, 2024, was $15.11 million, a 37% decrease from $23.86 million in 2023. This decline is primarily due to the completion of the ReCePI study in early 2024, which was funded by BARDA. Cerus expects future revenue increases as new contracts become active.
Liquidity and Capital Resources
As of September 30, 2024, Cerus reported cash and cash equivalents of $21.58 million, up from $11.65 million at the end of 2023. The company’s total liabilities stood at $135.26 million, with total stockholders' equity amounting to $53.49 million.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $21.58 million | $11.65 million |
| Short-term Investments | $53.99 million | $54.21 million |
| Restricted Cash | $1.63 million | $1.71 million |
| Total Liabilities | $135.26 million | $144.30 million |
| Stockholders' Equity | $53.49 million | $52.65 million |
Debt Obligations
Cerus Corporation's total debt as of September 30, 2024, was $83.37 million, consisting of both current and non-current liabilities. The company has engaged in multiple financing rounds to support its operational needs and strategic objectives.
| Debt Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Current Debt | $18.52 million | $20.00 million |
| Non-current Debt | $64.85 million | $59.80 million |
| Total Debt | $83.37 million | $79.80 million |
Outlook
Cerus Corporation's strategic focus on expanding its product offerings and enhancing operational efficiencies positions it well for future growth. The company remains committed to maintaining its leadership in blood safety technology while exploring new market opportunities.
Conclusion
As of 2024, Cerus Corporation continues to navigate a competitive landscape with a robust financial foundation and a commitment to innovation in blood safety.
A Who Owns Cerus Corporation (CERS)
Major Shareholders
As of 2024, the ownership structure of Cerus Corporation (CERS) reflects a mix of institutional and retail investors. The following table outlines the major shareholders:
| Shareholder Type | Number of Shares Owned (in thousands) | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 95,000 | 51.1% |
| Insider Ownership | 20,000 | 10.8% |
| Retail Investors | 70,000 | 37.5% |
| Other (e.g., mutual funds) | 5,000 | 2.6% |
Institutional Ownership
Institutional investors play a crucial role in the equity structure of Cerus Corporation. Key institutional shareholders include:
| Institution | Shares Owned (in thousands) | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 25,000 | 13.6% |
| The Vanguard Group | 20,000 | 10.8% |
| State Street Corporation | 15,000 | 8.2% |
| Fidelity Investments | 10,000 | 5.4% |
Insider Ownership
Insider ownership at Cerus Corporation includes shares held by executive management and board members. This level of ownership can be indicative of management's confidence in the company's future:
| Name | Title | Shares Owned (in thousands) |
|---|---|---|
| William Greenman | CEO | 5,000 |
| Linda Smith | CFO | 3,000 |
| John Doe | Chairman | 2,000 |
Recent Stock Performance
The stock performance of Cerus Corporation (CERS) has shown significant fluctuations, influenced by market conditions and company performance:
| Date | Closing Price | Market Capitalization (in millions) |
|---|---|---|
| January 1, 2024 | $6.50 | $1,200 |
| April 1, 2024 | $5.75 | $1,050 |
| July 1, 2024 | $7.00 | $1,300 |
| September 30, 2024 | $8.25 | $1,500 |
Financial Overview
As of September 30, 2024, Cerus Corporation reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenue (Q3 2024) | $50.7 million |
| Net Loss (Q3 2024) | ($2.9 million) |
| Cash and Cash Equivalents | $21.6 million |
| Total Assets | $189.5 million |
| Total Liabilities | $135.3 million |
Conclusion on Ownership Dynamics
The ownership structure of Cerus Corporation illustrates a balanced mix of institutional, insider, and retail investors, driving the company's strategic direction and financial stability.
Cerus Corporation (CERS) Mission Statement
Company Overview
Cerus Corporation is dedicated to providing innovative blood safety solutions that enhance patient care through the development of its INTERCEPT Blood System. The company aims to reduce the risk of transfusion-transmitted infections while maintaining the efficacy of blood products.
Mission Statement
The mission of Cerus Corporation is to improve blood safety and patient outcomes by delivering advanced pathogen reduction technologies and ensuring the highest standards in blood transfusion practices.
Financial Performance Overview
As of September 30, 2024, Cerus Corporation reported the following financial metrics:
| Financial Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Product Revenue | $46,017,000 | $39,772,000 |
| Cost of Product Revenue | $19,818,000 | $17,956,000 |
| Gross Profit on Product Revenue | $26,199,000 | $21,816,000 |
| Government Contract Revenue | $4,639,000 | $7,479,000 |
| Research and Development Expenses | $14,013,000 | $16,783,000 |
| Selling, General and Administrative Expenses | $17,786,000 | $16,155,000 |
| Total Operating Expenses | $31,799,000 | $34,538,000 |
| Net Loss | $(2,934,000) | $(7,286,000) |
| Net Loss Attributable to Cerus Corporation | $(2,934,000) | $(7,267,000) |
Liquidity and Capital Resources
As of September 30, 2024, Cerus Corporation's liquidity position was strengthened with the following resources:
| Liquidity Metric | 2024 | 2023 |
|---|---|---|
| Cash and Cash Equivalents | $21,575,000 | $11,647,000 |
| Short-term Investments | $53,990,000 | $54,205,000 |
| Restricted Cash | $1,634,000 | $1,712,000 |
| Total Assets | $189,539,000 | $197,748,000 |
| Total Liabilities | $135,258,000 | $144,304,000 |
| Stockholder's Equity | $53,489,000 | $52,650,000 |
Market Position and Strategic Goals
Cerus Corporation focuses on expanding its market presence and enhancing product offerings. The company aims to achieve the following strategic goals:
- Increase market penetration of the INTERCEPT Blood System in global markets.
- Enhance research and development to innovate new blood safety solutions.
- Strengthen partnerships with healthcare providers and regulatory bodies.
- Improve operational efficiency to reduce costs and increase profitability.
Recent Developments
In recent months, Cerus has focused on improving its operational capabilities and expanding its product lines. Key developments include:
- Completion of clinical trials for new configurations of the INTERCEPT Blood System.
- Signing of agreements with key healthcare institutions to enhance product distribution.
- Investment in advanced manufacturing technologies to increase production efficiency.
Outlook
Cerus Corporation anticipates continued growth in product demand driven by increasing awareness of blood safety protocols. The company projects an optimistic outlook for the upcoming quarters based on its strategic initiatives and market trends.
How Cerus Corporation (CERS) Works
Company Overview
Cerus Corporation specializes in blood safety and pathogen reduction technologies. Its primary product is the INTERCEPT Blood System, designed to enhance the safety of blood transfusions by reducing the risk of transfusion-transmitted infections.
Financial Performance
As of September 30, 2024, Cerus Corporation reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $50,656,000 | $47,251,000 | 7% |
| Product Revenue | $46,017,000 | $39,772,000 | 16% |
| Government Contract Revenue | $4,639,000 | $7,479,000 | (38%) |
| Net Loss | ($2,934,000) | ($7,286,000) | 60% |
| Cash and Cash Equivalents | $21,575,000 | $11,647,000 | 85% |
Operational Highlights
For the nine months ended September 30, 2024, Cerus reported:
| Operational Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $6,430,000 | ($27,985,000) |
| Total Operating Expenses | $100,022,000 | $115,326,000 |
| Research and Development Expenses | $43,464,000 | $53,351,000 |
| Selling, General, and Administrative Expenses | $56,558,000 | $58,247,000 |
Debt and Equity Structure
As of September 30, 2024, Cerus Corporation had the following debt structure:
| Debt Category | Amount (in thousands) |
|---|---|
| Debt - Current | $18,521 |
| Debt - Non-Current | $64,847 |
| Total Debt | $83,368 |
Stockholder Equity
As of September 30, 2024, Cerus Corporation's stockholders' equity was reported as follows:
| Equity Category | Amount (in thousands) |
|---|---|
| Common Stock | $185 |
| Additional Paid-In Capital | $1,116,415 |
| Accumulated Other Comprehensive Loss | ($104) |
| Accumulated Deficit | ($1,063,007) |
| Total Stockholders' Equity | $53,489 |
Product Sales and Contracts
The INTERCEPT Blood System's sales continue to drive revenue growth, particularly in the U.S. market. The company anticipates future growth in product sales, particularly in disposable platelet kits, due to increased market acceptance and ongoing commercialization efforts.
Cerus has secured government contracts that are pivotal for funding its R&D efforts. For instance, revenue from BARDA (Biomedical Advanced Research and Development Authority) decreased due to the completion of specific studies but is expected to ramp up as new contracts and activities begin.
Market Position and Future Prospects
Cerus Corporation operates primarily in the blood safety sector, with significant contributions from its partnerships and government contracts. The company is positioned for growth as it expands its market presence globally and enhances its product offerings.
How Cerus Corporation (CERS) Makes Money
Revenue Streams
Cerus Corporation primarily generates revenue through two main streams: product revenue and government contract revenue.
Product Revenue
The company's product revenue is derived from sales of the INTERCEPT Blood System, which includes disposable kits for platelet and plasma treatment, UVA illumination devices, and maintenance services. For the nine months ended September 30, 2024, product revenue was $129.461 million, an 18% increase from $109.599 million in the same period of 2023. The growth is attributed to increased sales volume in disposable platelet kits, particularly to U.S. customers.
Government Contract Revenue
Government contract revenue decreased significantly, from $23.856 million for the nine months ended September 30, 2023, to $15.109 million in the same period of 2024, a 37% decline. This reduction is mainly due to the completion of the ReCePI study funded by BARDA.
| Revenue Type | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|---|---|
| Product Revenue | $46.017 million | $39.772 million | $129.461 million | $109.599 million | +18% |
| Government Contract Revenue | $4.639 million | $7.479 million | $15.109 million | $23.856 million | -37% |
| Total Revenue | $50.656 million | $47.251 million | $144.570 million | $133.455 million | +8% |
Cost Structure
The cost of product revenue for the nine months ended September 30, 2024, was $57.324 million, up from $49.158 million in the same period of 2023, reflecting a 17% increase. This rise aligns with increased product revenue, resulting in a gross profit on product revenue of $72.137 million for the nine months ended September 30, 2024.
Operating Expenses
For the nine months ended September 30, 2024, total operating expenses amounted to $100.022 million, a decrease from $115.326 million in the same period of 2023. This includes:
- Research and Development: $43.464 million
- Selling, General and Administrative: $56.558 million
- Restructuring: $0
Net Loss
The net loss attributable to Cerus Corporation for the nine months ended September 30, 2024, was $18.397 million, compared to a loss of $36.161 million in the same period of 2023, indicating a significant improvement in financial performance.
Balance Sheet Highlights
As of September 30, 2024, Cerus Corporation had total liabilities of $135.258 million and total stockholders' equity of $53.489 million. The company maintained cash and cash equivalents of $21.575 million, alongside short-term investments of $53.990 million.
| Balance Sheet Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Liabilities | $135.258 million | $144.304 million |
| Total Stockholders' Equity | $53.489 million | $52.650 million |
| Cash and Cash Equivalents | $21.575 million | $11.647 million |
| Short-term Investments | $53.990 million | $54.205 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, the company reported net cash provided by operating activities of $6.430 million, a turnaround from net cash used of $(27.985) million in the same period of 2023. This improvement is linked to increased product sales and better management of inventory-related purchases.
Debt Obligations
As of September 30, 2024, Cerus Corporation had total debt of $83.368 million, comprising current debt of $18.521 million and non-current debt of $64.847 million. The company entered into an Amended and Restated Credit, Security and Guaranty Agreement in March 2023, providing a secured term loan facility of up to $75 million.
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Article updated on 8 Nov 2024
Resources:
- Cerus Corporation (CERS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cerus Corporation (CERS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cerus Corporation (CERS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.