Q2 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$2.04Last close (Aug 1, 2024)
Post-Earnings Price$2.15Open (Aug 2, 2024)
Price Change
$0.11(+5.39%)
- Cerus achieved positive adjusted EBITDA of $1 million in Q2 2024, a significant improvement from a loss of $4.7 million in the prior year, and expects strong growth, stable gross margins, and increasing operating leverage in the back half of the year, giving confidence in achieving their goal of positive adjusted EBITDA for the full year.
- The INTERCEPT Fibrinogen Complex (IFC) franchise presents significant growth potential, both from expanding usage within existing hospital customers and acquiring new ones, with the vast majority of hospitals yet to adopt IFC; increased demand and expanding production capacity position IFC as a meaningful contributor to top-line growth over the next few years, with growth being largely leverageable due to past investments, benefiting the bottom line.
- The development of the next-generation INT-200 illuminator, which enhances operational efficiency and reduces space requirements for blood centers by two-thirds, is expected to launch in Europe in 2025 and could drive increased adoption and customer satisfaction, supporting future growth.
- Regulatory delays and uncertainties may impact future growth prospects. Cerus is still awaiting response from the competent authority (CBG-MEB) in the Netherlands regarding approval of the INTERCEPT red blood cell system in the EU, with no definite timeline for feedback or approval. This uncertainty could delay the product launch in Europe and affect anticipated revenues.
- International market expansion faces potential challenges. In China, Cerus anticipates learning by the end of the year whether a local clinical study will be required for the INTERCEPT Blood System, which could delay entry into this significant market. Similarly, growth in Germany depends on successful completion of the marketing authorization and regulatory process, introducing uncertainty in timing and revenue realization in these markets.
- Growth of the INTERCEPT Fibrinogen Complex (IFC) may be constrained by production capacity. The company relies on blood center production partners to meet increasing demand for IFC. Any constraints or delays in ramping up production capacity, such as delays in additional BLAs (Biologics License Applications) for blood centers, could limit sales growth and the ability to meet customer needs.