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Cerus(CERS) - 2022 Q2 - Earnings Call Transcript
CerusCerus(US:CERS)2022-08-04 22:31

Financial Data and Key Metrics Changes - Product revenues for Q2 2022 reached $41 million, reflecting a year-over-year growth of 30% [26] - Net loss attributable to Cerus for Q2 2022 was $8.4 million, a significant reduction from $15.4 million in the same period of 2021 [35] - Non-GAAP adjusted EBITDA improved to negative $2.4 million in Q2 2022, compared to negative $8.2 million in Q2 2021 [36] Business Line Data and Key Metrics Changes - North American product sales increased by 75% year-over-year, significantly contributing to overall revenue growth [18] - The calculated number of treatable platelet doses grew by 65% year-over-year in the U.S. and 22% internationally for Q2 2022 [29] - INTERCEPT disposable kits accounted for over 96% of Q2 product revenue [30] Market Data and Key Metrics Changes - EMEA region experienced positive growth despite currency headwinds, particularly in the Middle East [20] - The strengthening U.S. dollar posed a 6% headwind to top-line revenue for the quarter [57] Company Strategy and Development Direction - The company aims to make INTERCEPT the standard of care in transfusion medicine globally, with a focus on expanding patient access [10] - Plans to self-fund future growth as the company approaches cash flow breakeven [16] - Continued emphasis on building a strong body of evidence around INTERCEPT Fibrinogen Complex's utility [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit product revenue growth in the second half of 2022 despite economic headwinds [40] - The company reiterated its full-year 2022 product revenue guidance range of $160 million to $165 million, reflecting year-over-year growth of 22% to 26% [41] Other Important Information - The company is progressing with its INTERCEPT red blood cell efforts, with ongoing Phase III trials [42] - The review process for the European regulatory submission for INTERCEPT red blood cells has commenced [49] - Dr. Hua Shan was welcomed to the Board, bringing expertise in blood safety and pathogen reduction [54] Q&A Session Summary Question: What was the FX impact on the top line in the quarter? - The company experienced about a 6% headwind from FX for the quarter, with expectations of 3 to 4 million dollars in incremental FX impact for the back half of the year [57][58] Question: How should the third quarter be viewed in terms of seasonality? - Management indicated that while there are headwinds, underlying product growth remains robust, and they do not provide quarterly guidance [60][62] Question: What is resonating most in terms of uptake for IFC? - Early availability and lower wastage rates are key factors driving interest among clinicians [73][75] Question: What changes are expected to accelerate adoption of IFC? - The company aims to increase awareness through case studies and registry data, while overcoming staffing challenges in hospitals [78] Question: Are timelines for submitting INTERCEPT Platelets to the NMPA still intact? - The company remains on track for submission before the end of the year despite challenges from COVID lockdowns [81] Question: How is the inflationary environment impacting the business? - The company is managing price increases and does not foresee alarming impacts on reaching adjusted EBITDA neutrality [83]