CONCORD, Calif.--(BUSINESS WIRE)--Cerus Corporation (NASDAQ:CERS) announced today that it has signed a new agreement with Fresenius Kabi. The 10-year contract extends and reinforces the existing partnership for the production of INTERCEPT Blood System kits at the manufacturing facility in La Châtre, France.
Under the terms of the agreement, Fresenius Kabi has committed to investing in the La Châtre facility. A number of investments are planned, first to foster automation and installation of new equipment, with additional future investments related to capacity expansion and cost reduction initiatives. La Châtre is designated in the agreement as the primary site of production. The agreement also provides that should the volume expectations require, a second manufacturing facility would be identified and qualified. Finally, under the new agreement, the current license agreement with Fresenius Kabi will convert to a royalty-free license and Cerus will no longer be required to pay royalties on the sale of INTERCEPT kits.
“I am very pleased to make this announcement,” commented Dr. Christian Hauer, member of the management Board of Fresenius Kabi AG, Medical Devices Division. “The constructive discussions with Cerus and the support of State services allowed us to finalize an agreement that confirms an industrial future to the site of La Châtre. It offers prospects to the more than 120 employees working on the production of INTERCEPT products.”
“With our over 15 year history working with the very capable group at the La Châtre facility, we are enthusiastic about continuing the relationship for the long-term,” said William 'Obi' Greenman, President and CEO of Cerus. “We believe that this agreement establishes a strong foundation for the security of our supply chain as we plan to expand our customer base with US blood centers and prepare to launch the INTERCEPT red cell system in the future.”
Cerus Corporation is a biomedical products company focused in the field of blood safety. The INTERCEPT Blood System is designed to reduce the risk of transfusion-transmitted infections by inactivating a broad range of pathogens such as viruses, bacteria and parasites that may be present in donated blood. The nucleic acid targeting mechanism of action of the INTERCEPT treatment is designed to inactivate established transfusion threats, such as Hepatitis B and C, HIV, West Nile Virus and bacteria, as well as emerging pathogens such as chikungunya, malaria and dengue. Cerus currently markets and sells the INTERCEPT Blood System for both platelets and plasma in the United States, Europe, the Commonwealth of Independent States, the Middle East and selected countries in other regions around the world. The INTERCEPT red blood cell system is in clinical development. See www.cerus.com for information about Cerus.
This press release contains forward-looking statements. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation, statements relating to the projects funded by Fresenius Kabi’s investments in the La Châtre manufacturing facility, the expansion of our US customer base and the potential launch of INTERCEPT red cells. These forward-looking statements are based upon Cerus’ current expectations. Actual results could differ materially from these forward-looking statements as a result of certain factors, including, without limitation, the risk that we do not have input into the operations of the La Châtre manufacturing facility and Fresenius Kabi may independently decide to invest in other projects, Cerus' lack of commercialization experience in the United States and its ability to develop and maintain an effective and qualified U.S.-based commercial organization, as well as the resulting uncertainty of its ability to achieve market acceptance of and otherwise successfully commercialize the INTERCEPT Blood System in the United States the uncertain and time-consuming development and regulatory process, including the risk that Cerus may be unable to complete the additional development and other activities necessary to support the potential CE mark submission for the INTERCEPT red cell system in a timely manner or at all, and may otherwise be unable to obtain any regulatory approvals for the INTERCEPT red cell system, as well as other risks detailed in Cerus' filings with the SEC, including Cerus' quarterly report on Form 10-Q filed with the SEC on August 7, 2015. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Cerus does not undertake any obligation to update any forward-looking statements as a result of new information, future events, changed assumptions or otherwise.
INTERCEPT and the INTERCEPT Blood System are trademarks of Cerus Corporation.