Cerus receives $7.2 million DoD contract amendment for trauma treatment

CONCORD, Calif. - Cerus Corporation (NASDAQ:CERS), a biotech company with a market capitalization of $260 million and showing revenue growth of ~13% over the last twelve months, has secured an additional $7.2 million contract amendment from the U.S. Department of Defense’s Industrial Base Analysis and Sustainment program, the company announced Monday. According to InvestingPro analysis, the company appears undervalued despite operating with moderate debt levels.

The funds will support the development of lyophilized Pathogen Reduced, Cryoprecipitated Fibrinogen Complex (LyoIFC) for treating bleeding due to trauma. This amendment supplements the approximately $18 million previously awarded to Cerus for developing a room-temperature, shelf-stable product for use in military environments with limited refrigeration. With the company’s earnings report due on July 31, InvestingPro subscribers can access detailed financial health metrics and expert analysis through comprehensive Pro Research Reports, available for over 1,400 US stocks.

The additional funding will specifically support CRYO-FIRST, a randomized study comparing pre-thawed INTERCEPT Fibrinogen Complex (IFC) to conventional cryoprecipitated antihemophilic factor in trauma patients with hemorrhagic shock.

The 320-patient study will evaluate IFC’s ability to increase plasma fibrinogen concentration in trauma patients, characterize its safety profile, and determine the proportion of trauma patients admitted with hypofibrinogenemia.

"We are privileged to extend our collaboration with the DoD to gain additional insights on how the immediate availability of IFC can potentially benefit trauma patients with earlier fibrinogen transfusion," said Dr. Laurence Corash, Cerus’ founder and chief scientific officer, in the press release.

Since receiving initial DoD funding in November 2022, Cerus has consulted with the FDA about the regulatory pathway for LyoIFC, scaled up production processes, and provided prototype materials to the DoD.

Hemorrhage is a leading cause of preventable death in trauma patients. The company believes providing fibrinogen earlier in treatment could improve survival rates.

Initial patient enrollment for the CRYO-FIRST study is targeted for the first half of 2026.

Based in Concord, California, Cerus develops technologies and pathogen-protected blood components for blood centers, hospitals, and patients. While the company maintains strong liquidity with a current ratio of 2.32, InvestingPro analysis indicates significant growth potential, with analyst price targets suggesting substantial upside potential from current levels.

In other recent news, Cerus Corporation has made significant progress in the European regulatory review process for its INTERCEPT Red Blood Cells system. The company’s Notified Body, TÜV-SÜD, completed the clinical module review for the CE Mark submission, transferring it to the Czech Republic’s State Institute for Drug Control for further evaluation. Additionally, shareholders at Cerus’ Annual Meeting approved an amendment to the company’s 2024 Equity Incentive Plan and elected new board members. Cantor Fitzgerald maintained an Overweight rating on Cerus stock, citing recent regulatory approvals for the INT200 illumination device in France and Switzerland. Cerus is also set to present new data on its INTERCEPT Blood System at the upcoming ISBT Congress, showcasing its use across various blood components. The company received regulatory nods for the INT200 device, an enhancement to the INTERCEPT Blood System, from both French and Swiss authorities. This device, designed to optimize blood center operations, follows its CE Mark approval earlier this year. Cerus plans to transition its existing INT100 devices in the EMEA region to the INT200 model over the next three years.

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