Cerus Corporation (NASDAQ:CERS) Plummets On Lowered 2014 Guidance
Cerus Corporation (NASDAQ:CERS) which is a mid cap biotech firm which is headquartered in Concord, CA reported on below par 4Q and full year operation results yesterday. It also released weak guidance for FY14. This resulted in the investor community en-mass deserting the stock, leading to a 17.2 percent dip in its market valuation.
Earnings Call Highlights
The highlight of yesterday’s earnings call was that the $459 million market capped firm reported its annual revenue going up by a substantive 8 percent in 2013, in comparison to FY12. The growth last year was offset by weak revenue in 4Q and a lowered guidance for 2014. Its 4Q13 revenue was down 12 percent compared to 4Q12. It expects annual revenue to come down to $38 to $40 million for the full year. This has been ascribed to the huge slowdown in sales during the January to June time frame, when the firm is going in for large scale rehauling of its distributor network. It also disclosed that in the fiscal year 2013, the firm won no government contracts.
FY 14 Outlook
It also reported strong activity on its new drug pipeline. It has announced that it expects FDA decision on its request to sanction a trial of its candidate drug INTERCEPT by mid September of 2014, and is working towards adding two more platelet PMA moduels for FDA review by 2015.
Reason For The Lowered Outlook
Explaining the rationale for a substantially lowered forecast for the full year 2014 operations, Cerus Corporation (NASDAQ:CERS) president and chief executive officer William Greenman has been quoted to have said that, “We are also pursuing strategic changes to certain distributor relationships in order to improve future growth opportunities in several existing commercial markets. As a result of these strategic changes, we are providing 2014 revenue guidance of $38-40 million, reflecting our expectation for a temporary negative sales impact during the first half of 2014”.