CONCORD, Calif.--(BUSINESS WIRE)--Cerus Corporation (NASDAQ:CERS) announced today that it has entered into a $40 million amended growth capital credit facility with Oxford Finance LLC, a specialty finance firm that provides senior debt to life sciences and healthcare services companies worldwide. Under the amended facility, Cerus received an immediate $30 million loan at closing on July 31, 2017 and has the option to draw another $10 million subject to achieving a specified revenue milestone.
“Oxford continues to be an invaluable partner. Their appreciation of our business opportunity and shared belief in our mission to establish INTERCEPT as the standard of care for transfused blood components globally strengthens our relationship,” said Kevin D. Green, vice president, finance and chief financial officer of Cerus Corporation. “The non-dilutive capital and potential access to additional proceeds provides us with financial flexibility to help us execute on our commercial growth strategy, as well as to support key clinical programs.”
“A portion of the proceeds from the initial $30 million loan were used to repay the outstanding term loans of approximately $17.6 million provided under the original agreement with Oxford. The amended facility provides Cerus with not only additional capital but also deferred amortization for 18 to 24 months,” continued Green.
“We are pleased to extend our collaboration with Cerus in support of its commercial growth initiatives,” said Christopher A. Herr, senior managing director at Oxford Finance. “Cerus’ commitment to improving patient care, its seasoned management team, and proprietary technology provides us with an attractive lending opportunity.”
Cerus Corporation is a biomedical products company focused in the field of blood transfusion 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.
Except for the historical statements contained herein, this press release contains forward-looking statements concerning Cerus’ expectations, opportunities and prospects, including statements concerning the availability of the second term loan of $10 million provided for under the amended credit facility with Oxford, Cerus’ mission to establish INTERCEPT as the standard of care for transfused blood components globally, Cerus’ execution on its commercial growth strategy, and other statements that are not historical facts. Actual results could differ materially from these forward-looking statements as a result of certain factors, including, without limitation: risks associated with the satisfaction of the conditions to the funding of the second term loan of $10 million provided for under the amended credit facility with Oxford and Cerus’ ability to maintain (and otherwise comply with the covenants in) the amended credit facility with Oxford; risks associated with Cerus’ ability to meet its debt service obligations and its need for additional funding; risks associated with the commercialization and market acceptance of, and customer demand for, the INTERCEPT Blood System; risks associated with 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 for platelets and plasma in the United States; risks related to Cerus’ ability to commercialize the INTERCEPT Blood System in the United States without infringing on the intellectual property rights of others; risks related to Cerus’ ability to demonstrate to the transfusion medicine community and other health care constituencies that pathogen reduction and the INTERCEPT Blood System is safe, effective and economical; the uncertain and time-consuming development and regulatory process, including the risks (a) that Cerus may be unable to comply with the FDA’s post-approval requirements for the INTERCEPT platelet and plasma systems, including by successfully completing required post-approval studies, which could result in a loss of U.S. marketing approval for the INTERCEPT platelet and/or plasma systems, (b) related to Cerus’ ability to expand the label claims and product configurations for the INTERCEPT platelet and plasma systems in the United States, which will require additional regulatory approvals and (c) that Cerus may be unable to obtain any regulatory approvals of the INTERCEPT red blood cell system in a timely manner or at all; risks related to adverse market and economic conditions, including continued or more severe adverse fluctuations in foreign exchange rates and/or weakening economic conditions in the markets where Cerus sells its products; Cerus’ reliance on third parties to market, sell, distribute and maintain its products; Cerus’ ability to maintain an effective manufacturing supply chain, including the ability of its manufacturers to comply with extensive FDA and foreign regulatory agency requirements; the impact of legislative or regulatory healthcare reforms that may make it more difficult and costly for Cerus to produce, market and distribute its products; risks related to future opportunities and plans, including the uncertainty of future revenues and other financial performance and results, as well as other risks detailed in Cerus’ filings with the Securities and Exchange Commission, including Cerus’ Quarterly Report on Form 10-Q for the quarter ended March 31, 2017, filed with the SEC on May 4, 2017. Cerus disclaims any obligation or undertaking to update or revise any forward-looking statements contained in this press release.