Cerus Corporation (CERS) | Investment Case

1. Company Snapshot

1.a. Company Description

Cerus Corporation operates as a biomedical products company.The company focuses on developing and commercializing the INTERCEPT Blood System to enhance blood safety.Its INTERCEPT Blood System, a proprietary technology for controlling biological replication that is designed to reduce blood-borne pathogens in donated blood components intended for transfusion.

The company offers INTERCEPT Blood Systems for platelets and plasma, which is designed to inactivate blood-borne pathogens in platelets and plasma donated for transfusion; INTERCEPT Blood System for red blood cells to inactivate blood-borne pathogens in red blood cells donated for transfusion; and INTERCEPT Blood System for Cryoprecipitation that uses its plasma system to produce pathogen reduced cryoprecipitated fibrinogen complex for the treatment and control of bleeding, including massive hemorrhage associated with fibrinogen deficiency, as well as pathogen reduced plasma, cryoprecipitate reduced.It sells platelet and plasma systems through its direct sales force and distributors in the United States, Europe, the Commonwealth of Independent States, the Middle East, Latin America, and internationally.The company was incorporated in 1991 and is headquartered in Concord, California.

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1.b. Last Insights on CERS

Cerus Corporation's recent performance was negatively impacted by the lack of recent earnings releases, with the last update being the Q4 2024 earnings call on February 20, 2025. The absence of recent financial results and management's outlook may have contributed to investor uncertainty. Additionally, the company's focus on regulatory approvals, such as the CE mark approval for its next-generation INTERCEPT Illumination Device (INT200) on March 5, 2025, may not have been enough to offset the lack of recent financial updates.

1.c. Company Highlights

Last Price	1.65
Change Percentage	3.12%
Open	1.62
Previous Close	1.6
Market Cap ( Millions)	317
Volume	1408411
Year High	2.24
Year Low	1.12
M A 50	1.47
M A 200	1.44

FCF Yield	1.08%
Dividend Yield	0.00%
ROE	-34.24%
Debt / Equity	178.43%
Net Debt / EBIDTA	-961.35%
Price To Book	5.69
Price Earnings Ratio	-16.72
Price To FCF	92.53
Price To sales	1.65
EV / EBITDA	-46.34

2. Cerus Q2 2025: Strong Revenue Growth and Expanded Guidance

Cerus Corporation reported a strong Q2 2025 with product revenue reaching $52.4 million, a 16% year-over-year increase. The company's INTERCEPT product portfolio drove this growth, particularly with the INTERCEPT Fresenius Component (IFC) revenue nearly doubling. The gross profit rose to $29 million, with stable margins at 55.2%. The non-GAAP adjusted EBITDA was $935K, marking the fifth consecutive quarter of positive EBITDA. Earnings per share (EPS) came in at -$0.03, slightly below estimates of -$0.02.

Publication Date: Sep -11

                                    📋 Highlights
                                    Q2 Product Revenue Growth:
                                                Surpassed $52.4M (+16% YoY), driven by IFC revenue of $5.6M (vs. $2M in Q2 2024).
Full-Year Guidance Raised:
                                                to $200–203M (prior: $194–200M), reflecting IFC adoption and global platelet demand.
Red Blood Cell Expansion:
                                                Advanced in Europe, with CE Mark submission under review to expand patient eligibility.
$7.2M DoD Contract:
                                                Secured for CRYO-FIRST study, validating IFC’s role in trauma care and cold storage.
Non-GAAP Adjusted EBITDA:
                                                Turned Positive for 5th Quarter ($935K), with full-year EBITDA guidance unchanged at $10–15M.

                                

Financial Highlights

The company's cash balance stood at $78 million at the end of Q2, with a slight decrease from $80.5 million previously due to working capital investments. Operating expenses increased to $40.1 million, reflecting investments in R&D and SG&A. The full-year product revenue guidance was raised to $200-203 million, up from the previous guidance of $194-200 million.

Business Updates

The INTERCEPT portfolio's growth was driven by IFC sales in the U.S. and platelet adoption globally. The company achieved a milestone with the 20 millionth INTERCEPT-treated blood component. The INT200 LED illuminator was launched, and the EU red blood cell program advanced with CE Mark expansion, removing restrictions related to chronic transfusion patients.

Outlook and Valuation

Cerus expects Q3 growth to be tempered by seasonal factors and deferred revenue, but anticipates a strong rebound in Q4. Analysts estimate revenue growth of 9.4% for the next year. With a current P/S Ratio of 1.24 and EV/EBITDA of -37.29, the market seems to be pricing in significant growth expectations. The company's ability to sustain positive EBITDA and expand its product portfolio will be key to meeting these expectations.

3. NewsRoom

Cerus Corporation (CERS) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

Cerus Corporation Announces Record Results for Third Quarter 2025 and Raises Full Year 2025 Product Revenue Guidance

Nov -06

Source: businesswire.com

Cerus Corporation Announces Abstracts and Industry Workshop on IFC at the 2025 AABB Annual Meeting

Oct -21

Source: businesswire.com

Cerus Corporation to Release Third Quarter 2025 Financial Results on November 6, 2025

Oct -16

Source: businesswire.com

The German National Blood Advisory Committee Issues Formal Recommendation for Improving the Safety of Platelet Transfusions

Aug -25

Source: businesswire.com

Cerus Corporation (CERS) Q2 2025 Earnings Call Transcript

Aug -06

Source: seekingalpha.com

Cerus Corporation Announces Second Quarter 2025 Financial Results

Aug -05

Source: businesswire.com

Cerus Corporation to Release Second Quarter 2025 Financial Results on August 5, 2025

Jul -22

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Blood Safety

Expected Growth: 10.0%

Cerus Corporation's Blood Safety segment growth is driven by increasing adoption of Intercept Blood System, expansion into new geographies, and rising demand for pathogen-reduced blood components. Growing concerns over blood-borne diseases and regulatory support for blood safety measures also contribute to the 10.0% growth.

7. Detailed Products

INTERCEPT Blood System

A pathogen reduction technology designed to inactivate pathogens, viruses, and bacteria in blood components, ensuring a safer blood supply.

INTERCEPT Platelet System

A system that inactivates pathogens and viruses in platelet components, reducing the risk of transfusion-transmitted infections.

INTERCEPT Plasma System

A system that inactivates pathogens and viruses in plasma components, reducing the risk of transfusion-transmitted infections.

CONTRAST Optimization System

A software solution that helps optimize contrast media dosing in medical imaging procedures.

8. Cerus Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Cerus Corporation's products are moderately susceptible to substitutes, as customers have some alternatives, but they are not easily replaceable.

Bargaining Power Of Customers

Cerus Corporation's customers have limited bargaining power due to the company's strong brand reputation and limited availability of alternatives.

Bargaining Power Of Suppliers

Cerus Corporation's suppliers have moderate bargaining power, as the company relies on a few key suppliers, but has some flexibility to switch to alternative suppliers.

Threat Of New Entrants

Cerus Corporation faces a high threat of new entrants, as the industry has low barriers to entry and new companies can easily enter the market.

Intensity Of Rivalry

Cerus Corporation operates in a highly competitive industry, with many established players and intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	60.97%
Debt Cost	8.66%
Equity Weight	39.03%
Equity Cost	10.49%
WACC	9.37%
Leverage	156.22%

11. Quality Control: Cerus Corporation passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

908 Devices

A-Score: 4.3/10

Value: 7.2

Growth: 2.9

Quality: 4.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Silk Road Medical

A-Score: 3.8/10

Value: 6.2

Growth: 5.6

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

Avanos Medical

A-Score: 3.6/10

Value: 8.9

Growth: 2.3

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 5.7

1-Year Total Return ->

Cerus

A-Score: 3.5/10

Value: 5.6

Growth: 6.9

Quality: 3.4

Yield: 0.0

Momentum: 2.5

Volatility: 2.3

1-Year Total Return ->

TELA Bio

A-Score: 3.3/10

Value: 7.8

Growth: 5.8

Quality: 3.6

Yield: 0.0

Momentum: 1.0

Volatility: 1.3

1-Year Total Return ->

Co-Diagnostics

A-Score: 2.4/10

Value: 7.8

Growth: 2.4

Quality: 4.1

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

26.01%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.37%

Cerus Corporation - US1570851014

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CERS

1.c. Company Highlights

Average Growth

Stable Momentum

Medium Volatility

Earnings Miss

Revenues Miss

Average Quality

Weak Momentum

Average Yield

Higher Growth

Earnings Beats

Lower Quality

2. Cerus Q2 2025: Strong Revenue Growth and Expanded Guidance

Financial Highlights

Business Updates

Outlook and Valuation

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Blood Safety

Expected Growth: 10.0%

7. Detailed Products

INTERCEPT Blood System

INTERCEPT Platelet System

INTERCEPT Plasma System

CONTRAST Optimization System

8. Cerus Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cerus Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.65$

Current Price

1.65$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA