Cerus(US:CERS)2020-08-05 02:47Financial Data and Key Metrics Changes - The company reported record product revenue of $21.5 million for Q2 2020, an 18% increase from $18.2 million in Q2 2019 [9][42] - Year-to-date product revenue reached $40.1 million, up 12% from $35.7 million in the first half of 2019 [42] - The net loss for Q2 2020 was $14.9 million, or $0.09 per diluted share, compared to a net loss of $17.6 million, or $0.13 per diluted share in the prior year [52] - The company ended Q2 2020 with approximately $136.5 million in cash, cash equivalents, and short-term investments [53] Business Line Data and Key Metrics Changes - Platelet kit sales in the U.S. showed robust year-over-year growth, accounting for approximately 82% of total kit sales, while plasma sales accounted for about 18% [12][45] - Government contract revenue from BARDA collaboration totaled $5.3 million in Q2 2020, compared to $4.3 million in the prior year [46] Market Data and Key Metrics Changes - The overall market opportunity for INTERCEPT platelets in the U.S. is approximately $150 million per year [17] - The American Red Cross has approximately 25% of their platelets now being INTERCEPT treated, with 20 of 23 production sites producing INTERCEPT platelets [13][16] Company Strategy and Development Direction - The company aims to capture as much of the U.S. INTERCEPT platelet market opportunity as possible over the next few years, with a goal for INTERCEPT to become the Standard of Care for platelets [17] - A five-year contract with the Hong Kong Red Cross was announced, representing a strategic account for expanding presence in the Asia-Pacific region [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving product revenue guidance of $89 million to $93 million for the year despite ongoing COVID-19 challenges [22] - The company is focused on ensuring support for blood center customers while preparing for two key product launches [60] Other Important Information - The company is on track for a PMA submission for pathogen-reduced cryoprecipitated fibrinogen complex by the end of the year, with potential FDA approval expected in early 2021 [25][26] - The INTERCEPT red blood cell program is progressing, with CE Mark approval expected in 2022 [40] Q&A Session Summary Question: What was the INTERCEPT platelet mix at the Red Cross at the end of 2019? - Management indicated that the American Red Cross has been steadily increasing their INTERCEPT platelet mix, with significant progress noted [61] Question: Is the seven-day U.S. platelet label just a label change? - Management confirmed that it is primarily a label change, which could enhance operational efficiency and justify a premium price for INTERCEPT [63][64] Question: What is the opportunity in Asia Pacific following the Hong Kong contract? - Management highlighted the importance of the Hong Kong Red Cross as a key opinion leader in the Asia-Pacific region, providing a critical entry point for further expansion [68][70] Question: Has the pace of INTERCEPT adoption changed with the FDA guidance deadline approaching? - Management noted that while there have been challenges due to COVID-19, there is a methodical move towards compliance with the FDA guidance, indicating solid growth in the U.S. platelet business [72]