Cerus(CERS) - 2021 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported Q1 2021 product revenue of $23.4 million, a 26% increase from $18.6 million in Q1 2020 [25] - Gross margins for Q1 were 52.5%, down from 55.3% in the prior year, reflecting a 280 basis point decline due to a shift in product mix [28][29] - The net loss for Q1 was $17.5 million, compared to $16.5 million in the same period last year [32] Business Line Data and Key Metrics Changes - INTERCEPT platelet kits demand in North America grew 51% year-over-year, with sales to the top 5 blood centers increasing 59% [18] - Kit sales represented 95% of Q1 product sales, with platelet kits accounting for approximately 90% and plasma kits for 10% [26] - Government contract revenue totaled $6.2 million in Q1, slightly up from $6 million in Q1 2020 [27] Market Data and Key Metrics Changes - In the EMEA region, product revenue increased 9% year-over-year, driven by major customers in established markets [20] - The company anticipates continued growth in international markets, particularly in Asia Pacific and Latin America [13] Company Strategy and Development Direction - The company raised its 2021 product revenue guidance to a range of $110 million to $114 million, reflecting a year-over-year growth of 20% to 24% [11][35] - The company is focusing on expanding its market presence and product offerings, including the anticipated launch of INTERCEPT Fibrinogen Complex [41] - The total addressable market for INTERCEPT products is estimated at $7 billion, with significant opportunities in geographies where products are not yet approved [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of hospital adoption and the potential for continued revenue growth throughout the year [41] - The company is preparing for a nationwide launch of INTERCEPT Fibrinogen Complex, with positive market reception anticipated [41] - Management highlighted the importance of the upcoming FDA compliance deadline as a driver for increased production capabilities among blood centers [46] Other Important Information - The company is working on a clinical trial for INTERCEPT plasma in burn injury treatment, showcasing its potential applications [39] - The company is in discussions with additional production partners to enhance capacity and expedite market entry in various regions [23] Q&A Session Summary Question: What is driving the improved guidance? - The guidance revision is primarily driven by strong performance in the U.S. market, with increasing confidence in production capabilities and hospital access as the COVID pandemic subsides [44][46] Question: Is the pricing for the cryoprecipitate fibrinogen complex included in the TAM calculations? - The proposed pricing of $3,900 per patient is included in the total addressable market calculations for the product [48][50] Question: Can you provide more details on U.S. platelet adoption? - There is accelerated adoption among blood centers, with some moving faster than anticipated, driven by increased awareness of safety needs due to the pandemic [58][62] Question: What is the timeline for the cryo product launch? - The BLA submissions are expected to occur mid-year, with a nationwide rollout anticipated in mid-2022 [75] Question: How are partnerships in LATAM and China progressing? - The company is securing tenders in Brazil, but COVID-19 has posed challenges for further penetration in Latin America [78]