Cerus(US:CERS)2022-02-23 01:00Financial Data and Key Metrics Changes - Cerus Corporation reported record Q4 2021 product revenue of $39.9 million, reflecting a year-over-year growth of 41% and a sequential growth of 10% [23] - For the full year 2021, product revenue totaled $130.9 million, a 42% increase compared to 2020 [23] - The net loss attributable to Cerus for Q4 was $9.1 million or $0.05 per diluted share, an improvement from a net loss of $14.4 million or $0.09 per diluted share in the prior year [33] - The full year net loss attributable to Cerus was $54.4 million or $0.32 per diluted share, compared to $59.9 million or $0.37 per diluted share in the prior year [33] Business Line Data and Key Metrics Changes - Sales of INTERCEPT consumable products represented nearly 97% of Q4 product revenue [25] - The calculated number of treatable platelet doses in Q4 reflected a 132% year-over-year increase in the U.S. and a 4% decline internationally [24] - Government contract revenue totaled $10.2 million in Q4 and $28.7 million for the full year, compared to $5.4 million and $22.3 million in the prior year respectively [26] Market Data and Key Metrics Changes - Fourth quarter sales in North America grew by 108% versus the prior year period, while EMEA was roughly flat when adjusting for foreign currency [23] - The global total addressable market (TAM) for INTERCEPT platelets is estimated to be about $1.3 billion, with the U.S. opportunity representing about $150 million [14] Company Strategy and Development Direction - Cerus aims to safeguard the global blood supply and is committed to bringing products to market that protect blood components from known and future threats [12] - The company plans to extend its leadership in currently served markets and penetrate untapped geographies like China, alongside the commercial success of new products [13] - The company is focused on advancing R&D programs to innovate pathogen inactivation and develop enhancements to improve customer experience and cost profile [43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving cash flow breakeven and highlighted the importance of financial discipline in driving growth [38] - The company anticipates strong double-digit growth in 2022, primarily driven by INTERCEPT platelets in the U.S. [37] - Management acknowledged challenges related to COVID-19 impacting hospital access but remains confident in the growth potential of the INTERCEPT product line [72] Other Important Information - The company ended 2021 with $129.4 million in cash and cash equivalents, indicating a strong financial position [34] - Operating expenses for Q4 totaled $37.6 million, with a focus on maintaining expense leverage as revenue grows [30] Q&A Session Summary Question: Opportunities for OUS growth - Management noted that while 2022 may not see significant contributions from OUS markets, there is potential for growth in EMEA and China, with ongoing efforts to secure market share [50][52] Question: Commercial collaborations for IFC - Management discussed partnerships with OneBlood and Blood Centers of America to facilitate the nationwide launch of IFC, emphasizing the importance of these collaborations for market penetration [54][58] Question: Drivers for IFC adoption - Management highlighted the importance of real-world experience data and clinical studies in driving demand for IFC, with expectations for significant impact from upcoming data releases [62] Question: SG&A trends and capital allocation - Management indicated that SG&A expenses may increase slightly but at a slower pace than revenue growth, with a focus on leveraging existing commercial infrastructure to address TAM expansion [66][68]