Cerus Realigns Development Efforts and Reduces Expenses.Business Editors/Health/Medical Writers CONCORD, Calif.--(BUSINESS WIRE)--Oct. 15, 2003 Cerus Corporation (Nasdaq:CERS) today announced that the company is restructuring its operations to focus on its pathogen inactivation inactivation /in·ac·ti·va·tion/ (in-ak?ti-va´shun) the destruction of biological activity, as of a virus, by the action of heat or other agent. products for platelets and plasma and on its pipeline of therapeutics and vaccines. The company will reduce operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. primarily related to its red blood cell red blood cell: see blood. program while it investigates alternative approaches to advance that program. The company previously announced termination of Phase III clinical investigation of pathogen inactivated inactivated rendered inactive; the activity is destroyed. inactivated viruses treated so that they are no longer able to produce evidence of growth or damaging effect on tissue. red blood cells Red blood cells Cells that carry hemoglobin (the molecule that transports oxygen) and help remove wastes from tissues throughout the body. Mentioned in: Bone Marrow Transplantation red blood cells . As a result of the restructuring, the company will reduce its current workforce by approximately 25 percent and expects to reduce its research and development expenses for 2003 to approximately $55 million, from previously projected expenditures of $60-65 million. The change in focus is expected to result in an overall expense reduction of $20-25 million in 2004 over 2003. "We are working expeditiously to cut expenses relating to the red blood cell clinical program," said Stephen T. Isaacs, president and chief executive officer. "Meanwhile, we are working with Baxter to commercialize INTERCEPT Platelets in Europe and to complete the regulatory process for the product in the United States. In addition, we are pleased to have a second product, the INTERCEPT Blood System for plasma, approaching completion of Phase III clinical trials and to have a pipeline of development-stage therapeutic products." Cerus separately announced the initiation of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. by Baxter Capital Corporation concerning the $50 million loan provided to it by Baxter earlier this year. The companies are in disagreement on whether or not the loan is due at this time. The collaboration agreements between Cerus and Baxter Healthcare Corporation relating to the INTERCEPT Blood System are not a subject of this action. In addition to the INTERCEPT Blood System, Cerus also is developing therapeutic and vaccine applications of its Helinx technology. The company's Epstein Barr virus vaccine is designed to protect organ transplant patients against this virus, which can potentially cause malignant lymphoma. The company is also developing an allogenic allogenic /al·lo·gen·ic/ (-jen´ik) allogeneic. allogenic, adj from individuals of the same species. Tissue transplanted from one person to another is said to be allogenic. cellular immune therapeutic (ACIT ACIT Academic Consortium on International Trade ACIT Al Ahram Center for Interpreting & Translation (Cairo, Egypt) ACIT Association of Christians in Information Technology (UK) ) designed to improve the outcome of stem cell transplants in patients with lymphoma and leukemia. A second Phase I clinical trial Noun 1. phase I clinical trial - a clinical trial on a few persons to determine the safety of a new drug or invasive medical device; for drugs, dosage or toxicity limits should be obtained phase I of the ACIT is expected to begin soon. About Cerus Cerus Corporation is developing medical systems and therapeutics to provide safer and more effective options to patients. The company is developing products based on its proprietary Helinx(R) technology for controlling biological replication. Cerus' most advanced programs are focused on systems to enhance the safety of the world's blood supply. The INTERCEPT Blood System, which is being developed in collaboration with subsidiaries of Baxter International Inc., is based on the company's Helinx technology. The INTERCEPT Blood System is designed to inactivate in·ac·ti·vate v. 1. To render nonfunctional. 2. To make quiescent. in·ac  ti·va viruses, bacteria, other pathogens, and white blood cells White blood cellsA group of several cell types that occur in the bloodstream and are essential for a properly functioning immune system. Mentioned in: Abscess Incision & Drainage, Bone Marrow Transplantation, Complement Deficiencies . The Concord, California-based company also is pursuing therapeutic applications of Helinx technology to treat and prevent serious diseases. Helinx is a trademark of Cerus Corporation INTERCEPT and INTERCEPT Blood are trademarks of Baxter International Inc. Statements in this news release regarding projected cost savings, regulatory filings, product development, commercial potential, possible outcomes of the loan dispute and the company's relationship with Baxter Healthcare are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the above forward-looking statements as a result of certain factors, including the risks and uncertainty of the timing and results of clinical trials and other development activities, actions by regulatory authorities at any stage of the development and commercialization process, additional financing activities, manufacturing, market acceptance of any products, competitive conditions, legal proceedings, actions by Baxter and other factors discussed in the company's most recent filings with the Securities and Exchange Commission. |
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