Cerus(CERS) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Full year 2024 product revenues were $180.3 million, representing 15$50.8 million, reflecting year-over-year growth of 9% [23] - Reported net loss attributable to Cerus for 2024 improved by 44% to $20.9 million from$37.5 million for 2023 [34] - Positive adjusted EBITDA of $5.7 million for the year, a significant improvement over the negative$10.7 million for the prior year [35] - Fourth quarter 2024 generated positive operating cash flows of $4.9 million, compared to cash used for operations of$15.2 million in Q4 2023 [36] Business Line Data and Key Metrics Changes - The IFC business was up almost 30% in Q4 2024 compared to the prior year [24] - Full year 2024 North American product revenues increased by 23% over 2023 levels [24] - EMEA fourth quarter product revenues were up 16% year-over-year [25] - Government contract revenue totaled $21.1 million for 2024 compared to$30.4 million for 2023 [26] Market Data and Key Metrics Changes - Canadian Blood Services achieved 100% PR adoption for platelet production [15] - The company is seeing strong platelet traction across its global franchise as it enters 2025 [19] - The total addressable market for blood safety and availability is estimated to exceed $7 billion annually [39] Company Strategy and Development Direction - The company aims to establish the INTERCEPT blood system as a standard of care in transfusion medicine [9] - Plans for a new and enhanced CE Mark submission for INTERCEPT red blood cells are underway [12] - The company is focused on expanding its global platelet franchise and capturing market share in the U.S. [19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in 2025, driven by strong demand for both platelet and IFC products [39] - The company anticipates year-over-year growth of 8$80.5 million in cash, cash equivalents, and short-term investments [36] - Operating expenses for 2024 were down more than 8% to $134.8 million compared to$146.9 million for 2023 [30] Q&A Session Summary Question: Steps to full U.S. market access for IFC - Management highlighted the importance of balancing demand and supply, with recent BLA approvals enabling transportation across state lines [48] Question: Outlook for China market opportunity - NMPA approval is expected in 2025, followed by a reimbursement process that may take about a year [51] Question: Dynamics of additional supply for IFC - Management confirmed that sufficient manufacturing supply is anticipated to meet demand, with ongoing efforts to increase supply [58] Question: Product gross margins outlook - Management indicated that most issues affecting Q4 margins were episodic, with FX rates being a key factor to monitor [62] Question: SG&A guidance for 2025 - SG&A expenses are expected to rise slightly due to inflationary pressures, but significant new investments are not planned [70] Question: Penetration levels at major U.S. blood centers - Management noted continued inbound inquiries from blood centers to adopt INTERCEPT, indicating ongoing share capture [97] Question: Government contract revenue run-rate for 2025 - Management suggested that Q4 revenue may not be a good baseline for 2025, expecting overall government contract revenue to increase as initiatives ramp up [101]