Cerus Corporation Announces Second Quarter Financial Results

CONCORD, Calif.--(Business Wire)--
Cerus Corporation (NASDAQ: CERS) today announced financial results for the
second quarter ended June 30, 2009.

Revenue for the second quarter of 2009 was $4.2 million, up from $4.0 million in
revenue recognized during the second quarter of 2008. Total revenue for the
first six months of 2009 was $7.7 million, down from $9.0 million recognized
during the first six months of 2008, primarily due to $1.5 million in 2007
product sales initially deferred and recognized as revenue during the first six
months of 2008. Product revenue for the INTERCEPT Blood System was $3.9 million
during the second quarter of 2009, representing an increase of $0.8 million, or
25%, from the first quarter of 2009. Second quarter 2009 product revenue was in
line with the $4.0 million recorded during the second quarter of 2008, when $0.3
million of previously deferred product revenue was recognized. Product revenue
for the first six months of 2009 was $7.0 million, down from $8.9 million during
the first six months of 2008, when the $1.5 million of previously deferred
product revenue was recognized. Government grant revenue recognized during the
second quarter of 2009 was $0.3 million; no government grant revenue was
recognized during the second quarter of 2008. Government grant revenue for the
first six months of 2009 was $0.7 million, up from $0.1 million in government
grant revenue recognized during the first six months of 2008.

Total operating expenses for the second quarter of 2009 were $7.2 million, down
from $10.1 million for the same period in 2008. The decrease in operating
expenses was due to a reduction in research and development expenses and
selling, general and administrative expenses, partially offset by second quarter
2009 non-recurring restructuring costs of $0.1 million associated with the
Company`s restructuring plans, previously announced in March 2009. Operating
expenses for the first six months in 2009 were $16.0 million, down from $20.0
million during the same period in 2008. The reduction in operating expenses was
directly attributable to the savings realized from the Company`s restructuring
plan, which provided for the Company to focus resources on commercializing the
INTERCEPT platelet and plasma systems in Europe, reduce operating expenses, and
tightly manage working capital.

Net loss for the second quarter of 2009 was $6.2 million, or $0.19 per share,
compared to a net loss of $8.9 million, or $0.28 per share, for the second
quarter of 2008. Net loss for the first six months of 2009 was $13.6 million, or
$0.42 per share, compared to a net loss of $14.9 million, or $0.46 per share,
for the same period in 2008.

At June 30, 2009, the Company had cash, cash equivalents and short-term
investments of $12.9 million, down from $22.6 million at December 31, 2008 and
$15.4 million at March 31, 2009, reflecting net cash consumption of $2.5 million
for the second quarter. Overall, cash consumption slowed significantly during
the second quarter of 2009, as the Company began implementing and realizing the
impact from its previously announced restructuring plan. As a consequence, the
Company continues to expect that existing cash resources will be adequate to
fund the Company`s operations into 2010.

"We are pleased with the outcome of our initiatives to reduce cash expenditures
and focus on commercializing the INTERCEPT Blood System in Europe and the Middle
East. This quarter, we achieved significant commercial progress in key markets
while also reducing spending, which extends our cash runway and shortens the
bridge towards profitability," said Claes Glassell, President and Chief
Executive Officer of Cerus Corporation.

RECENT HIGHLIGHTS:

* Achieved 25% sequential growth in product revenue during the second quarter of
2009;
* Reduced cash burn by more than 65% from the first quarter of 2009;
* Extended supply agreement with French national blood service (EFS) and added
two additional regional centers; now supplying INTERCEPT to six of seventeen
regions of EFS;
* Increased Belgian platelet market share to approximately 40%; Belgium Royal
Decree now mandates universal use of pathogen inactivation for platelets by
August 2010;
* Expanded the distribution relationship with Grifols, adding Italy to the
INTERCEPT territory that already included Spain and Portugal;
* Completed enrollment in Phase I clinical trial for the red blood cell system;
and
* Submitted proposed protocol to FDA for platelet system Phase III clinical
trial.

QUARTERLY CONFERENCE CALL

The Company will host a conference call and webcast at 4:30 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 7, 2009.

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.

Forward-Looking Statements

Except for the historical statements contained herein, this press release
contains forward-looking statements concerning the Company`s prospects and
results, including the sufficiency of the Company`s cash resources, potential
profitability and market acceptance of its INTERCEPT Blood System products.
Because the Company`s forward-looking statements are subject to risks and
uncertainties, there are important factors that could cause actual results to
differ materially from those in the forward-looking statements. These factors
include, without limitation, risks and uncertainties involving market acceptance
of the INTERCEPT Blood System and the Company`s need for additional capital, as
well as the other risks and uncertainties disclosed from time to time in reports
filed by the Company with the SEC, including the Company`s quarterly report on
Form 10-Q for the fiscal quarter ended March 31, 2009, filed with the SEC on
April 30, 2009. The Company disclaims any obligation or undertaking to update or
revise any forward-looking statements contained in this press release.

CERUS CORPORATION

CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATION

(In thousands except per share information)

Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Revenue
Product revenue $ 3,871 $ 4,030 $ 6,956 $ 8,882
Government grant and cooperative agreements 335 -- 738 117
Total Revenue 4,206 4,030 7,694 8,999

Cost of product revenue 2,520 3,077 4,614 4,791
Gross profit 1,686 953 3,080 4,208

Operating expenses
Research and development 1,625 2,670 3,637 5,454
Selling, general and administrative 5,409 7,439 11,510 14,540
Restructuring 129 -- 841 --
Total operating expenses 7,163 10,109 15,988 19,994
Loss from operations (5,477 ) (9,156 ) (12,908 ) (15,786 )
Other income (expense), net (735 ) 209 (701 ) 899

Net loss $ (6,212 ) $ (8,947 ) $ (13,609 ) $ (14,887 )

Net loss per share - basic and diluted $ (0.19 ) $ (0.28 ) $ (0.42 ) $ (0.46 )

Weighted average common shares outstanding used for basic and diluted loss per share
Basic 32,650 32,450 32,620 32,330
Diluted 32,650 32,450 32,620 32,330

Cerus Corporation

Condensed Consolidated Unaudited Balance Sheets

(In thousands)

June 30, December 31,
2009 2008

Cash, cash equivalents, and short-term investments $ 12,862 $ 22,578
Accounts receivable and other current assets 7,241 8,356
Inventories 9,755 11,109
Property and equipment, net 1,465 1,844
Other assets 3,238 3,452
Total Assets $ 34,561 $ 47,339

Accounts payable and accrued liabilities $ 11,810 $ 12,453
Accrued restructuring 361 --
Deferred revenue 659 445
Other long-term liabilities 138 163
Total liabilities 12,968 13,061
Stockholders` equity 21,593 34,278
Total liabilities and stockholders` equity $ 34,561 $ 47,339

Cerus Corporation
Kevin D. Green, 925-288-6138
Vice President, Finance & CAO
or
Porter Novelli Life Sciences
Jason Spark, 619-849-6005

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