CERUS CORP Q4 FY2024 earnings call

• 2024 was a milestone year with positive adjusted EBITDA for the full year and double-digit product revenue growth, fueled by global platelets and U.S. IFC growth.
• Vivek discussed 2024 top line growth, strong IFC demand, progress in the IFC market with BLA approvals enabling transport across state lines, and plans to launch the new INT200 illuminator in EMEA.
• Kevin reviewed financial results, noting 2024 product revenue of $180.3 million, Q4 2024 product revenue of $50.8 million, gross profit and margin details, operating expenses down over 8% in 2024, and positive adjusted EBITDA for 2024 and Q4 2024.

For 2024, full year product revenues were $180.3 million, with 2024 Q4 product revenue at $50.8 million, a year-over-year growth of 9%. The platelet franchise drove much of the growth, with EMEA platelet sales and U.S. platelet sales contributing. The IFC business saw strong growth: full year 2024 IFC sales were up 42% to $9.2 million, and Q4 2024 IFC product revenue was $3 million, up from $2.3 million in the prior year. North American product revenues in 2024 were up 23% over 2023 levels, and EMEA Q4 2024 product revenues were up 16% year-over-year. FX rates had a slight impact on EMEA in Q4 2024 but little impact on full-year results.

• Anticipate year-over-year product revenue growth of 8% to 11% in 2025.
• Expect positive adjusted EBITDA to be durable in 2025.
• Plan to generate continued positive operating cash flows in 2025.

• FX rates could impact revenue; if the dollar strengthens relative to the euro, it could negatively impact the revenue line.
• Shipping costs and certain discard rates were episodic in Q4 2024 but need to be monitored.

Q: Walk through steps left for full U.S. market access for IFC and optimism on capturing U.S. market opportunity for IFC A: Vivek mentioned balancing demand and supply, with BLA approvals enabling transport across state lines, and continued real world experience and maturing clinical evidence will help penetrate the market. Cerus is optimistic about capturing a significant portion of the multi-hundred million dollar U.S. market for IFC.

Q: Outlook for China opportunity and when Cerus could start seeing China franchise contribute revenues A: Expect NMPA approval in 2024, followed by a prudential reimbursement process estimated to take about a year. Not expected to contribute meaningfully to revenue in 2024 but will be a meaningful market opportunity once approval and reimbursement are in place.

Q: Thoughts on SG&A guidance, including one-time items and growth drivers A: Kevin stated SG&A expenses will be slightly up in 2025 relative to 2024, with the one-time item in Q4 being anomalous, and growth driven by inflationary pressures. No significant new investments planned, but expect leverage from SG&A spend relative to revenue growth.

Q: Commercialization timeline for Brazil and steps needed A: Vivek mentioned applying to gain access to the public sector in Brazil, with a dossier being put together and awaiting decisions from government agencies, anticipated later in 2024. Once approved, operationalizing the rollout will follow.

Q: Platelet growth in North America and other geographies with early adoption potential A: Vivek noted platelet growth in North America continues with underlying adoption trends strengthening, and geographies like China (joint venture), Germany (single largest remaining market in Western Europe), and the Middle East (especially Saudi Arabia) have strong market opportunities with interest and enthusiasm for adopting INTERCEPT.