UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 29, 2010

CERUS CORPORATION
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	0-21937	 	68-0262011	
(State or other jurisdiction
of incorporation)	 	(Commission File No.)	 	(IRS Employer
Identification No.)	
2550 Stanwell Drive
Concord, California 94520
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (925) 288-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 2.02.	Results of Operations and Financial Condition.	
On July 29, 2010, Cerus Corporation (the “Company”) announced its financial results for its second quarter ended June 30, 2010. A copy of the Company’s press release, entitled “Cerus Corporation Reports Second Quarter Revenues,” is furnished pursuant to Item 2.02 as Exhibit 99.1 hereto.
The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 11 and 12(a)(2) of the Securities Act of 1933, as amended. The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by the Company, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing.
 
Item 9.01.	Financial Statements and Exhibits.	
 
 	(d)	Exhibits.	
 
 	99.1	Press Release, dated July 29, 2010, entitled “Cerus Corporation Reports Second Quarter Revenues.”	

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	 	 	CERUS CORPORATION	
				
Dated: July 29, 2010	 		 	By:	 	/s/    K EVIN D. G REEN        	
	 		 		 	Kevin D. Green	
	 		 		 	Vice President, Finance and Chief Accounting Officer	

EXHIBIT INDEX

Exhibit
Number	  	Description	
		
99.1	  	Press Release, dated July 29, 2010, entitled “Cerus Corporation Reports Second Quarter Revenues.”	

Exhibit 99.1

			
Contact:	 		
		
Kevin D. Green	 	Jason Spark	
Vice President, Finance & CAO	 	Canale Communications	
Cerus Corporation	 	(619) 849-6005	
(925) 288-6138	 		
CERUS CORPORATION REPORTS SECOND QUARTER REVENUES
—     Product revenue jumps 47% from Q2 2009
CONCORD, CA, July 29, 2010 - Cerus Corporation (NASDAQ: CERS) today announced financial results for the second quarter ended June 30, 2010.
Revenue for the second quarter of 2010 was $5.9 million, up from $4.2 million recognized during the second quarter of 2009. Total revenue for the first six months of 2010 was $11.7 million, up from $7.7 million recognized during the first six months of 2009. The increase in revenue for the second quarter and first six months of 2010 was due to growth from product sales of the INTERCEPT Blood System. Product revenue for the INTERCEPT Blood System was $5.7 million during the second quarter of 2010, representing an increase of $1.8 million, or 47%, from the second quarter of 2009. Despite average foreign exchange rate erosion of 8% between the U.S. dollar and the Euro, product revenue grew by 4% from the first quarter of 2010. Product revenue for the first six months of 2010 was $11.2 million, up from $7.0 million during the first six months of 2009. Government grant revenue recognized during the second quarter of 2010 was $0.2 million, compared to $0.3 million recognized during the second quarter of 2009. Government grant revenue for the first six months of 2010 was $0.5 million, down from $0.7 million in government grant revenue recognized during the first six months of 2009.

Gross margins for the second quarter of 2010 were 51% compared to gross margins of 40% for the second quarter of 2009. Gross margins for the first six months of 2010 were 48% compared to 40% for the same period in 2009. The improvement in 2010 gross margins is attributable to lower per-unit costs of INTERCEPT Blood System product sold in 2010 compared to 2009.
Total operating expenses for the second quarter of 2010 were $6.5 million, down from $7.2 million for the same period in 2009. The decrease in operating expenses reflects the full effect of the Company’s 2009 restructuring plans announced in March 2009. Operating expenses for the first six months of 2010 were $13.1 million, down from $16.0 million during the same period in 2009.
Net loss for the second quarter of 2010 was $5.4 million, or $0.14 per share, compared to a net loss of $6.2 million, or $0.19 per share, for the second quarter of 2009. Net loss for the first six months of 2010 was $10.4 million, or $0.27 per share, compared to a net loss of $13.6 million, or $0.42 per share, for the same period in 2009.
At June 30, 2010, the Company had cash, cash equivalents and short-term investments of $15.9 million, down from $19.9 million at December 31, 2009 and $19.0 million at March 31, 2010, resulting in net cash consumption of $3.1 million for the second quarter. During the first quarter of 2010, the Company entered into a $10 million growth capital facility and drew the first $5 million from that facility. The second $5 million may be drawn down between September 30 and December 31, 2010, at the Company’s option.
“A fifth straight quarter of record product revenues reflects the increasing familiarity of the INTERCEPT product in both routine use and clinical experience. Our technology is now available to more and more patients,” said Claes Glassell, President and Chief Executive Officer of Cerus Corporation. “Despite the difficult global economic environment and weakening of the Euro, we continue to add new customers and see strong demand for improved blood safety.”
 
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RECENT HIGHLIGHTS:
 
 	•	 	Five straight quarters of revenue growth - Achieved 47% year over year growth in sales of INTERCEPT;	
 
 	•	 	Improved gross margins to 51% and maintained historically low operating expense levels;	
 
 	•	 	Announced INTERCEPT efficacy against XMRV, a retrovirus gaining widespread attention; and	
 
 	•	 	Announced results of 22 abstracts presenting experiences with the INTERCEPT Blood System during the XXXIst International Congress of the International Society for Blood Transfusion in Berlin, Germany.	
QUARTERLY CONFERENCE CALL
The Company will host a conference call and webcast at 4:15 p.m. Eastern time today to discuss its financial results and provide a general business overview. To access the live webcast, please visit the Investor Relations page of the Cerus web site at http://investor.cerus.com. Alternatively, you may access the live conference call by dialing 877-407-0782 (U.S.) or 201-689-8567 (international).
A replay will be available on the Cerus web site, or by dialing 877-660-6853 (U.S.) or 201-612-7415 (international) and entering account number 286 and conference ID number 300291. The replay will be available approximately two hours after the call through August 6, 2010.
 
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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, Russia, the Middle East and selected countries in other regions around the world. The INTERCEPT red blood cell system is currently in clinical development. See http://www.cerus.com for more information.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus Corporation.
Financial Tables Attached
 
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION
(In thousands except per share information)

 	  	Three Months Ended
June 30,	 	 	Six Months Ended
June 30,	 	
 	  	2010	 	 	2009	 	 	2010	 	 	2009	 	
Revenue	  				 				 				 				
Product revenue	  	$	5,690	  	 	$	3,871	  	 	$	11,190	  	 	$	6,956	  	
Government grant and cooperative agreements	  	 	245	  	 	 	335	  	 	 	467	  	 	 	738	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Revenue	  	 	5,935	  	 	 	4,206	  	 	 	11,657	  	 	 	7,694	  	

Cost of product revenue	  	 	2,934	  	 	 	2,520	  	 	 	6,092	  	 	 	4,614	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	3,001	  	 	 	1,686	  	 	 	5,565	  	 	 	3,080	  	
					
Operating expenses	  				 				 				 				
Research and development	  	 	1,244	  	 	 	1,625	  	 	 	2,494	  	 	 	3,637	  	
Selling, general and administrative	  	 	5,304	  	 	 	5,409	  	 	 	10,575	  	 	 	11,510	  	
Restructuring	  	 	—  	  	 	 	129	  	 	 	—  	  	 	 	841	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	6,548	  	 	 	7,163	  	 	 	13,069	  	 	 	15,988	  	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss from operations	  	 	(3,547	) 	 	 	(5,477	) 	 	 	(7,504	) 	 	 	(12,908	) 	
Other expense, net	  	 	(1,880	) 	 	 	(735	) 	 	 	(2,945	) 	 	 	(701	) 	

Net loss	  	$	(5,427	) 	 	$	(6,212	) 	 	$	(10,449	) 	 	$	(13,609	) 	

Net loss per share – basic and diluted	  	$	(0.14	) 	 	$	(0.19	) 	 	$	(0.27	) 	 	$	(0.42	) 	
					
Weighted average common shares outstanding used for basic and diluted loss per share	  				 				 				 				
Basic	  	 	38,940	  	 	 	32,650	  	 	 	38,880	  	 	 	32,620	  	
Diluted	  	 	38,940	  	 	 	32,650	  	 	 	38,880	  	 	 	32,620	  	
 
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CERUS CORPORATION
CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
(In thousands)

 	  	June 30,
2010	  	December  31,
2009	
Cash, cash equivalents, and short-term investments	  	$	15,864	  	$
 	 
19,931	
Accounts receivable and other current assets	  	 	4,770	  	 	4,721	
Inventories	  	 	6,267	  	 	7,707	
Property and equipment, net	  	 	1,691	  	 	1,217	
Other assets	  	 	1,300	  	 	915	
	  	 	 	  	 	 	
Total Assets	  	$	29,892	  	$	34,491	

Accounts payable and accrued liabilities	  	$	7,669	  	$	9,718	
Accrued restructuring	  	 	—  	  	 	113	
Deferred revenue	  	 	212	  	 	345	
Long-term debt, current	  	 	797	  	 	—  	
Warrant liability	  	 	4,352	  	 	2,737	
Long-term debt, non-current	  	 	4,036	  	 	—  	
Other long-term liabilities	  	 	748	  	 	130	
	  	 	 	  	 	 	
Total liabilities	  	 	17,814	  	 	13,043	
	  	 	 	  	 	 	
Stockholders’ equity	  	 	12,078	  	 	21,448	
	  	 	 	  	 	 	
Total liabilities and stockholders’ equity	  	$	29,892	  	$	34,491	

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