Cerus(US:CERS)2024-03-05 23:43Financial Data and Key Metrics Changes - In Q4 2023, product gross profit was $26 million, a 6% increase from $24.5 million in the prior year period, with product gross margins at 55.5%, stable compared to the previous year and slightly up from Q3 [3][14][21] - The net loss attributable to Cerus for Q4 2023 was $1.3 million, significantly improved from $13.6 million in the same period last year [63] - Non-GAAP adjusted EBITDA was positive for the first time, reaching almost $5 million, an improvement of over $8 million compared to Q4 2022 [21][60] Business Line Data and Key Metrics Changes - The U.S. product revenues in Q4 2023 exceeded prior year levels, increasing sequentially by 22% from Q3 [18][20] - The INTERCEPT Fibrinogen Complex (IFC) is expected to generate annual revenue of $8 million to $10 million in 2024, marking a significant growth opportunity [4][68] - The platelet franchise showed strong growth globally, with Canadian Blood Services implementing INTERCEPT for whole blood derived platelets, achieving over 85% of platelet units issued to hospitals being INTERCEPT treated [16][59] Market Data and Key Metrics Changes - In EMEA, Q4 product revenues were up 3% year-over-year and around 2% compared to Q3 2023, with foreign exchange rates providing a benefit of approximately 430 basis points [18] - The company anticipates continued growth in the U.S. platelet franchise and IFC business, with significant opportunities in international markets such as Germany and the Middle East [72][74] Company Strategy and Development Direction - The company is focused on international expansion of INTERCEPT platelets and growth of IFC in the U.S., with a commitment to maintaining pricing discipline amid inflation [2][74] - The strategic emphasis is on deepening relationships with existing customers and activating new accounts, particularly in the IFC business [70][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2024, expecting double-digit growth in product revenues and improved bottom-line results [14][41] - The company is optimistic about the ReCePI trial results and anticipates providing updates on its progress throughout the year [43][91] Other Important Information - Operating expenses in Q4 2023 totaled $31.6 million, a 24% decline from $41.8 million in the prior year, reflecting the impact of a restructuring initiative [37][38] - The cash position at the end of Q4 2023 was $65.9 million, with cash used from operations at $15.2 million, compared to $1.8 million in the prior year [40][65] Q&A Session Summary Question: What is the expected revenue for IFC in 2024 and its potential market size? - The company expects IFC revenue to be in the range of $8 million to $10 million for 2024, with a total addressable market estimated between $200 million to $300 million [68][44] Question: Can you provide insights on international growth, particularly in Germany and China? - The company anticipates continued progress in Germany and sees growth opportunities in the Middle East, while the regulatory process in China is ongoing with no indication of needing a clinical trial [72][73] Question: What are the expectations for positive EBITDA in 2024? - Management indicated that positive EBITDA is a reasonable assumption for the entire year, with expectations for stability and potential improvement from Q4 levels [70][64]