Q2 2024 Cerus Corp Earnings Call
Operator: Good day, ladies and gentlemen. Thank you for standing by, and welcome to the Cerus Corporation second quarter 2024 earnings conference call. After the speaker's presentation, there will be a question and answer session. To ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jessica Hanover, Cerus' Vice President of Corporate Affairs. Dr. Hanover, you may begin.
Speaker Change: Good day, ladies and gentlemen. Thank you for standing by and welcome to the Cerus Corporation second quarter 2024 earnings conference call.
Speaker Change: After the speaker's presentation, there will be a question and answer session.
Speaker Change: To ask a question, please press star 1 1 on your telephone and wait for your name to be announced.
Speaker Change: To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jessica Hanover, Cerus' Vice President of Corporate Affairs. Dr. Hanover, you may begin.
Jessica Hanover: Thank you and good afternoon. I'd like to thank everyone for joining us today.
Jessica Hanover: As part of today's webcast, we are simultaneously displaying slides that you can follow. With me on the call are Obie Greenman, Cerus's President and Chief Executive Officer, Vivek Jayaraman, Cerus's Chief Operating Officer, and Kevin Green, Cerus's Chief Financial Officer. I'd like to remind you that some of the statements we will make on this call relate to future events and performance, rather than historical facts, and are forward-looking statements. Examples of forward-looking statements include those related to our future financial and operating results, including our 2024 product revenue guidance, our expectations for operating cash flows and non-GAAP-adjusted EBITDA performance, and our expected expense levels, expected future growth, and our growth trajectory.
Jessica Hanover: Thank you and good afternoon. I'd like to thank everyone for joining us today. As part of today's webcast, we are simultaneously displaying slides that you can follow.
Speaker Change: You can access the slides from the Investor Relations website at ir.cerus.com.
Speaker Change: With me on the call are Obie Greenman, Cerus' President and Chief Executive Officer, Vivek Jayaraman, Cerus' Chief Operating Officer, and Kevin Green, Cerus' Chief Financial Officer.
Speaker Change: Cerus issued a press release today announcing our financial results for the second quarter ended June 30, 2024, and describing the company's recent business highlights. You can access a copy of this announcement on the company website at www.cerus.com.
Jessica Hanover: These forward-looking statements involve risks and uncertainties that could cause actual events, performance, and results to differ materially. They are identified and described in today's press release and our slide presentation and under risk factors in our Form 10-Q for the quarter ended June 30, 2024, which we will file shortly. We undertake no duty or obligation to update our forward-looking statements. On today's call, we will also be discussing non-GAAP financial measures, including non-GAAP-adjusted EBITDA.
Speaker Change: I'd like to remind you that some of the statements we will make on this call related to future events and performance rather than historical facts
Speaker Change: and our forward-looking statements.
Speaker Change: Examples of forward-looking statements include those related to our future financial and operating results, including our 2024 product revenue guidance, our expectations for operating cash flows and non-GAAP-adjusted EBITDA performance, and our expected expense levels.
Speaker Change: expected future growth and our growth trajectory, the availability and related timing of data from clinical trials, planned regulatory submissions and product launches, product expansion prospects, and other statements that are not historical facts.
Speaker Change: These forward-looking statements involve risks and uncertainties that could cause actual events or
Speaker Change: Performance and results to differ materially.
Speaker Change: They are identified and described in today's press release, in our slide presentation, and under risk factors in our Form 10-Q for the quarter ended June 30, 2024, which we will file shortly. We undertake no duty or obligation to update our forward-looking statements.
Speaker Change: On today's call, we will also be discussing non-GAAP financial measures, including non-GAAP-adjusted EBITDA.
Speaker Change: These non-GAAP measures should be considered a supplement to and not a replacement for measures presented in accordance with GAAP.
Jessica Hanover: For a reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures, please refer to today's press release and the slide presentation available on our website. Now, it's my pleasure to introduce Obie Greenman, Cerus' president and chief executive officer.
Speaker Change: For reconciliation of non-GAAP financial measures to the most comparable GAAP financial measures, please refer to today's press release and the slide presentation available on our website.
Speaker Change: We'll begin today with opening remarks from Obi, followed by Vivek to discuss recent business highlights, then Kevin to review our financial results and expectations for the rest of 2024, and lastly, closing remarks from Obi.
Obie Greenman: And now it's my pleasure to introduce Obie Greenman, Cerus' President and Chief Executive Officer.
Obie Greenman: Thank you, Jessica, and good afternoon, everyone. I'd like to open the call with a review of the highlights from a strong second quarter, as well as our positive outlook for the duration of the year. So we are raising our annual product revenue guidance range for the full year to $175 to $178 million from our previous range of $172 to $175 million. And they're using Intercept in the increasingly important role of pathogen inactivation across the globe.
Obie Greenman: Thank You Jessica and good afternoon everyone. I'd like to open the call with a review of the highlights from a strong second quarter as well as our positive outlook for the duration of the year.
Obie Greenman: Given the trends we have seen over the first half of this year, we are increasingly confident in our ability to meet and exceed our product revenue expectations.
Obie Greenman: So we are raising our annual Product Revenue Guidance range for the full year to $175-$178 million from our previous range of $172-$175 million.
Obie Greenman: Our confidence stems from the growing number of blood centers and hospitals that are using Intercept in the increasingly important role of pathogen inactivation across the globe.
Obie Greenman: Most recently, in Barcelona, at the International Society of Blood Transfusion, or ISBT, Congress,
Obie Greenman: We're delighted to see key opinion leaders present on a broad range of topics relevant to Intercept Blood. One clear example is the growing threat from dengue, a transfusion-transmitted arbovirus carried by the mosquito. The Intercept blood system proactively protects the blood supply against this virus, along with many others, and can be an important safeguard for the locally sustainable blood supply. In Florida, at the moment, many playlets can still be collected locally and distributed for transfusion when treated with the Intercept web system in areas at risk for dengue transmission to realize the benefits of a full pathogen inactivation portfolio for all transfused blood.
Obie Greenman: We are delighted to see key opinion leaders present on a broad range of topics relevant to the Intercept Blood System.
Obie Greenman: from platelets and plasma to intercept fibrinogen complex and red blood cells.
Obie Greenman: Pathogen inactivation has become a foundational part of blood safety strategies in addition to testing and donor deferrals.
Obie Greenman: We are seeing more and more members of the global transfusion medicine community recognize this and the need in the context of pandemic preparedness.
Obie Greenman: One clear example is the growing threat from dengue, a transfusion-transmitted arbovirus carried by the mosquito.
Obie Greenman: Earlier this summer, both the U.S. Centers for Disease Control and Prevention and the European Center for Disease Prevention and Control have issued warnings about the rising risk of dengue transmission.
Obie Greenman: This has implications for blood safety risks and can lead to regional donor deferral requirements which are burdensome and limit availability.
Speaker Change: The Intercept blood system proactively protects the blood supply against this virus, along with many others, and can be an important safeguard for the locally sustainable blood supplies.
Speaker Change: In Florida, at the moment, many playlets can still be collected locally and distributed for transfusion when treated with intercept blood system in the areas at risk for dengue transmission.
Speaker Change: To realize the benefits of a full pathogen inactivation portfolio for all transfused blood components,
Obie Greenman: Since our last earnings call, we've had a number of meetings with our clinical investigators and Scientific Advisory Board members about the Recipe Phase 3 clinical trial data and next steps. Later this fall, data from the Recipe Study will be presented at major medical meetings, including the American Society of Anesthesiology's annual meeting and the ABB annual meeting. We continue to be encouraged by the reception with which these data have been received by cardiovascular surgery, anesthesiology, and transfusion medicine experts. We're also in the process of finalizing the recipe clinical trial report for submission to the FDA. Redis, our second U.S. representative
Speaker Change: We continue to advance Intercept Red Blood Cell Program.
Speaker Change: Since our last earnings call, we've had a number of meetings with our clinical investigators and Scientific Advisory Board members about the Recipe Phase III clinical trial data and next steps.
Speaker Change: Later this fall, data from the RISD study will be presented at major medical meetings, including the American Society of Anesthesiology's annual meeting and the ABB annual meeting.
Speaker Change: We continue to be encouraged by the reception with which these data have been received by cardiovascular surgery, anesthesiology, and transfusion medicine experts.
Speaker Change: We're also in the process of finalizing the recipe clinical trial report for submission to the FDA.
Obie Greenman: phase III clinical trial continues to enroll. As mentioned previously, we recently opened a few more RETA sites within the U.S., as well as an important thalassemia site in Turkey, with a goal to finalize study enrollment by mid-2025. Moving on to our new LED illuminator that we plan to submit for CE mark approval later this year, this foundational platform for future growth of the Intercept business has been well-received by our Blood Center customers, and the opportunity to demo the device to the same operators whose input helped design the instrument was indeed a rare gift.
Speaker Change: Redis, our second US Phase III clinical trial, continues to enroll.
Speaker Change: As mentioned previously, we recently opened a few more RETA sites within the U.S., as well as an important thalassemia site in Turkey, with a goal to finalize study enrollment by mid-2025, coincident with the initiation of the PMA modular process for an FDA approval.
Speaker Change: Moving on to our new LED illuminator that we plan to submit for CE mark approval later this year, we had the opportunity to showcase the new device in our booth at the ISPT Congress in Barcelona in June .
Speaker Change: This foundational platform for future growth of the Day Intercept business.
Speaker Change: has been well-received by our Blood Center customers and the opportunity to demo the device to the same operators whose input helped design the instrument was indeed a rare gift.
Obie Greenman: It was most satisfying to register their approval around the operational benefits realized, and we look forward to providing an update on a regulatory submission later this year. With respect to the solid financial foundation of our business, we remain committed to reaching adjusted EBITDA breakeven for the full year 2024.
Speaker Change: It was most satisfying to register their approval around the operational benefits realized, and we look forward to providing an update on our regulatory submission later this year.
Speaker Change: With respect to the solid financial foundation of our business, we remain committed to reaching adjusted EBITDA break-even for the full year of 2024.
Kevin: Kevin will provide more insight into our pathway for continued improvement in this metric over time.
Speaker Change: I would like now to turn the call over to Vivek to discuss our commercial results and progress for the second quarter of 2024, as well as our outlook for the second half of this year.
Vivek: Thank you, Obi, and good afternoon to everyone.
Vivek: As Obi mentioned, with now more than half of the year behind us, we are increasingly confident in our sales trajectory for the full year. This is fueled primarily by continued growth in our U.S. platelet business as we have continued to increase intercept market share in this geography.
Vivek: As we mentioned this time last year, a key focus for our global commercial team was to return to compelling growth and ensure that we were expanding access to intercepts.
Vivek Jayaraman: I am pleased to see so many geographies contributing to our strong first half 2024 growth. Interceptory platelets remain the standard of care for platelet safety in the U.S. During the quarter, we saw steady growth across all customer segments. With their platelet implementation now complete, CBS's focus is turning to their intention to validate intercepts for plasma. Simultaneously, the validation efforts at Hamlet, Quebec, continue to advance towards completion
Speaker Change: I am pleased to see so many geographies contributing to our strong first half 2024 growth. Of note, our Q2 performance was led by our U.S. platelet franchise, as the fundamentals of that business strengthened.
Speaker Change: Intercept treated platelets remain the standard of care for platelet safety in the US. During the quarter we saw steady growth across all customer segments.
Speaker Change: From an overall market perspective, based on our channel check, there was a slight increase in platelet collections and underlying hospital demand for platelets.
Speaker Change: Most importantly, with each passing quarter, the volume of real-world experience with intercepts grows larger, and both blood centers and hospitals realize the benefits of intercepts that extend well beyond mitigating bacterial risk.
Speaker Change: Moving to the international business, we are thrilled to report that, as expected, Canadian Blood Services, or CBS , completed implementation of Intercept across this entire platelet production operation and is now at 100% pathogen inactivation.
Speaker Change: With their platelet implementation now complete, CBS's focus is turning to their intention to validate intercepts for plasma.
Speaker Change: Simultaneously, the validation efforts at HEMA Quebec continue to advance towards completion.
Vivek Jayaraman: As Obi referenced, we recently attended the ISBT Congress. At that meeting, the strength of our international franchise was on full display. We hosted the Standing Room Only Symposium at ISPT, and it is incredibly encouraging to see long-standing customer partners actively recruit new customers into the Interceptor ranks. With new technologies, such as the LED Illuminator and Intercept Red Cells on the horizon, our international markets will serve as the initial proving grounds for commercialization and customer opportunity.
Speaker Change: Beyond Canada, we saw solid growth in many international regions.
Speaker Change: As Obi referenced, we recently attended the ISBT Congress. At that meeting, the strength of our international franchise was on full display.
Speaker Change: We continue to cultivate meaningful growth opportunities in the Middle East, Latin America, and Asia Pacific, while leveraging our 100% geographies, like France and Switzerland, to drive peer-to-peer educational efforts by sharing their long, positive experience with pathogen reduction.
Speaker Change: We hosted a standing room only symposium at ISPT, and it is incredibly encouraging to see long-standing customer partners actively recruit new customers into the Intercept ranks.
Speaker Change: With new technologies, such as the LED Illuminator and Intercept Red Cells on the horizon, our international markets will serve as the initial proving grounds for commercialization and customer updates.
Vivek Jayaraman: I look forward to updating you on exciting international commercial progress in the quarters to come. We made great progress in our education and awareness efforts during the quarter. We are now starting to really see the benefits of our fully staffed and trained sales force.
Speaker Change: I look forward to updating you on exciting international commercial progress in the quarters to come.
Speaker Change: Turning to Intercept Fibrinogen Complex, or ISC, we are pleased with the progress made over the quarter.
Speaker Change: Based on new account activations, both in our direct-to-hospital business as well as via our large blood center partners, we remain confident in our annual ISD revenue guidance of $8 to $10 million.
Speaker Change: We've made great progress in our education and awareness efforts during the quarter. We are now starting to really see the benefits of our fully staffed and trained sales teams.
Vivek Jayaraman: Our clinical education efforts also are bearing fruit, as we are now able to share published data from hospitals that have implemented and benefited from IEP. For example, The Stanford Group's recent paper in the American Journal of Clinical Pathology describes significant improvements with IC, including a 78 percent reduction in overall weight and a 58 percent reduction in order to product issue time. Separately, in a retrospective review also published last month in Transfusion, Kaiser Permanente Los Angeles Medical Center reported on its own IFC implementation in response to cryo shortages due to the pandemic. The Kaiser Group observed a 74% reduction in waste and a 70% reduction in order to issue talentless ISPs.
Speaker Change: Our clinical education efforts also are bearing fruit as we are now able to share published data from hospitals that have implemented and benefited from ISD.
Speaker Change: The Stanford Group's recent paper in the American Journal of Clinical Pathology describes significant improvements with IFC, including a 78% reduction in overall weight and a 58% reduction on order-to-product issue time.
Speaker Change: Separately, in a retrospective review also published last month in Transfusion, Kaiser Permanente Los Angeles Medical Center reported on its own IFC implementation in response to cryo shortages due to the pandemic.
Speaker Change: The Kaiser Group observed a 74% reduction in waste and a 70% reduction in order to issue townless ISPs. As with any innovative technology, peer-to-peer education on direct experience is invaluable.
Obie Greenman: As with any innovative technology, peer-to-peer education on direct experience is invaluable. The list of hospitals using ISD is a virtual who's who of leading institutions across several clinical departments. At this point, it is clear to us that demand for ISD is real and growing, and that our hypothesis about the clinical utility and differentiation of ISD is valid. Our sales and marketing organizations continue to gain favorable attention at targeted scientific meetings, and we are seeing a marked increase in inbound inquiries about IFA.
Speaker Change: The list of hospitals using ISD is a virtual who-to of leading institutions across several clinical departments.
Speaker Change: At this point, it is clear to us that demand for ISD is real and growing, and that our hypothesis about the clinical utility and differentiation of ISD is valid.
Speaker Change: Our sales and marketing organizations continue to gain favorable attention at targeted scientific meetings, and we are seeing a marked increase in inbound inquiries about ISC.
Obie Greenman: In parallel to driving increased IC demand, we continue to push hard to ensure growth and product supply. To that end, we are happy to announce that during the quarter, another one of our contract manufacturing blood center partners received FDA approval for its biologic license application, or BLA. At this time, we have two additional manufacturing partners with BLAs still under review by the FDA, which, upon approval, will increase ISC capacity even further.
Speaker Change: In parallel to driving increased IC demand, we continue to push hard to ensure growth and product supply.
Speaker Change: To that end, we are happy to announce that during the quarter, another one of our contract manufacturing blood center partners received FDA approval for its biologics license application or BLA.
Speaker Change: At this time, we have two additional manufacturing partners with BLA still under review by the FDA, which, upon approval, will increase ISC capacity even further.
Obie Greenman: Furthermore, as more hospitals express interest in ISD, we are starting to field requests from new blood centers on how to produce ISD. Our progress in Q2 deepens our confidence in the IC franchise, and, most importantly, we are hearing directly from physicians that we are providing a product that materially improves their ability to care for their patients. I look forward to providing more updates on our projects with ISP in future quarters. I will now turn the call over to Kevin to review our financial report.
Speaker Change: Furthermore, as more hospitals express interest in ISB, we are starting to field requests from new blood centers on how to produce ISB.
Speaker Change: Our progress in Q2 deepens our confidence in the IC franchise, and most importantly, we are hearing directly from physicians that we are providing a product that materially improves their ability to care for their patients.
Speaker Change: I look forward to providing more updates on our projects with ISD in future quarters.
Speaker Change: I will now turn the call over to Kevin to review our financial results.
Kevin Green: On today's call, I'll be discussing our financial results for the second quarter of 2024, along with commentary on how those results affect our financial outlook for the remainder of 2024 compared to the plan we communicated earlier this year. To start, we posted product revenue of $45.1 million for the second quarter of 2024. This represents year-over-year growth of 16% and brings first half revenue to $83.4 million, up 20% from the first half of last year.
Kevin: Thanks today.
Kevin: Good afternoon, and thank you all for joining us.
Kevin: On today's call, I'll be discussing our financial results for the second quarter of 2024, along with commentary on how those results and our financial outlook for the remainder of 2024 compare to the plan we communicated earlier this year.
Speaker Change: To start, we posted product revenue of $45.1 million for the second quarter of 2024.
Speaker Change: This represents year-over-year growth of 16% and brings the first half revenue to $83.4 million.
Kevin Green: North American platelet sales were the major contributor to our product revenue growth during the quarter. In the U.S., second quarter 2024 product revenues exceeded prior year levels by 19 percent. As we anticipated, sales to Canadian Blood Services were also extremely strong and reached 100% across their entire platelet production operation during the quarter. In EMEA, second quarter product revenues were up slightly year over year and up 8% compared to the first quarter of 2024. Year over year, FX rates were a slight headwind for the India business of around 1%.
Speaker Change: up 20% from the first half of last year.
Speaker Change: North American platelet sales were the major contributor to our product revenue growth during the quarter.
Speaker Change: In the U.S., second quarter 2024 product revenues exceeded prior year levels by 19 percent.
Speaker Change: As we anticipated, sales to Canadian Blood Services were also extremely strong and reached 100% across their entire platelet production operation during the quarter.
Speaker Change: In EMEA, second quarter product revenues were up slightly year over year, and up 8% compared to the first quarter of 2024.
Speaker Change: Year-over-year, FX rates were a slight headwind for the India business of around 1%.
Kevin Green: Also for Q2, we posted IFC product revenue of $2 million, driven by both the addition of new hospitals, as well as increased adoption at existing hospitals, in addition to our product revenue and not included in our guidance. Government contract revenue totaled $5.4 million in Q2 compared to $8.9 million for the prior year period. The completion of our U.S. Phase III recipe clinical trial was the primary driver for the decline. We now expect our Turkish site to begin enrolling patients within the next few months.
Speaker Change: Also for Q2, we posted IFC product revenue of $2 million.
Speaker Change: up from $1.4 billion in the prior year period.
Speaker Change: Driven by both the addition of new hospital users
Speaker Change: as well as increased adoption at existing hospitals.
Speaker Change: As Vivek mentioned in his comments, expanding clinician experience with the utility of IFC in massive hemorrhage has been and will continue to be key to IFC's growth trajectory.
Speaker Change: in addition to our product revenue and not included in our guidance.
Speaker Change: Government contract revenue totaled $5.4 million in Q2 compared to $8.9 million for the prior year period.
Speaker Change: The completion of our US Phase 3 recipe clinical trial was the primary driver for the decline.
Kevin Green: As that happens, we expect a modest uptick in government contract revenue. As a reminder, included in our government contract are the revenues recognized as reimbursement under our contract with BARDA, our agreement with the FDA to further whole blood pathogen reduction, and our milestone-based agreement with the U.S. Department of Defense for Lyophilized IFCs, an increase of 16% year-over-year. Product margins for the second quarter were 54.7%, relatively stable when compared to both the prior year and Q1 2024.
Speaker Change: We now expect our turkosite to begin enrolling patients in the next few months.
Speaker Change: As that happens, we expect a modest uptick in government contract revenue.
Speaker Change: As a reminder, included in our government contract are the revenues recognized as reimbursement under our contract with BARDA.
Speaker Change: our agreement with the FDA to further whole blood pathogen reductions.
Speaker Change: and our milestone-based agreement with the U.S. Department of Defense for Lyophilized IFC.
Speaker Change: Turning now to our product gross profit and gross margins.
Speaker Change: Our second quarter product gross profit was $24.7 million compared to $21.3 million during the prior year period.
Speaker Change: an increase of 16% year-over-year.
Speaker Change: The product gross margins for the second quarter were 54.7%.
Speaker Change: Relatively stable when compared to both the prior year and Q1 2024.
Speaker Change: Absent any unanticipated factor, we continue to expect that gross margins will remain close to Q2 levels for the balance of the year.
Kevin Green: Moving on, our second quarter operating expenses, which totaled $33.9 million, were $8 million lower than the $41.9 million the prior year, a year-over-year decline of 19%. Without the impact of the $2.1 million June 2023 restructuring charge, operating expenses were $5.8 million lower, or 15%, when comparing the June 2024 quarter to the prior year. Q2 2024 operating expenses included $5.8 million in non-cash, stock-based compensation. By specific expense type, second quarter R&D expenses totaled $15 million, compared to $19.2 million during the prior year period.
Speaker Change: Moving on, our second quarter operating expenses, which totaled $33.9 million, were $8 million lower than the $41.9 million the prior year.
Speaker Change: A year-over-year decline of 19%.
Speaker Change: Without the impact of the $2.1 million June 2023 restructuring charge, operating expenses were $5.8 million lower, or 15%, when comparing the June 2024 quarter to the prior year.
Speaker Change: Q2 2024 operating expenses included $5.8 million in non-cash, stock-based compensation.
Speaker Change: By specific expense type, second quarter R&D expenses totaled $15 million, compared to $19.2 million during the prior year period.
Kevin Green: Similar to our Q1 results, this 22% decline was driven primarily by the completion of the recipe clinical trial and the effects of the restructuring implemented in June of last year. The decline, again, was driven by last year's restructuring.
Speaker Change: Similar to our Q1 results.
Speaker Change: This 22% decline was driven primarily by the completion of the RECIPE clinical trial and the effects of the restructuring implemented in June of last year.
Speaker Change: Second quarter SG&A expenses were $19 million compared to $20.5 million during the prior year period.
Kevin Green: We do not anticipate significant swings in SG&A for the remainder of 2024 and anticipate continued leverage from our SG&A investment. On the bottom line, the reported net loss attributable to Cerus for the three months ended June 30, 2024, improved significantly when compared to the same period in the prior year. The net loss attributable to Cerus for Q2 narrowed by 56% to $5.8 million or $0.03 per diluted share compared to $13.3 million or $0.07 per diluted share for the prior year period.
Speaker Change: The decline, again, driven by last year's restructuring.
Speaker Change: We do not anticipate significant swings in SG&A for the remainder of 2024 and anticipate continued leverage from our SG&A investments.
Speaker Change: Let's now focus on the bottom line and non-gap-adjusted E-to-DOT results.
Speaker Change: On the bottom line, reported net loss attributable to Cerus for the three months ended June 30, 2024, improved significantly when compared to the same period in the prior year.
Speaker Change: Net loss attributable to Cerus for Q2 narrowed by 56% to $5.8 million or $0.03 per diluted share compared to $13.3 million or $0.07 per diluted share for the prior year period.
Speaker Change: The net loss for Q2 of this year approximates our non-cash stock-based compensation mentioned previously.
Kevin Green: Q2 2024 generated positive adjusted EBITDA of just under $1,000,000 compared to a loss of $4.7 million for the prior year period. We're pleased with the adjusted EBITDA result and remain steadfast in our commitment to deliver a positive adjusted EBITDA result for 2024 as a whole. As we look ahead, the second half growth contemplated in our revised guide and Stable Gross Margin are all expected to contribute to the anticipated achievement of our goal on the balance sheet and associated cash flows.
Speaker Change: on a non-gap-adjusted EBITDA basis.
Speaker Change: Q2 2024 generated positive adjusted EBITDA of just under $1,000,000 compared to a loss of $4.7 million for the prior year period.
Speaker Change: We're pleased with the Adjusted EBITDA result and remain steadfast in our commitment to deliver a positive Adjusted EBITDA result for 2024 as a whole.
Speaker Change: As we look ahead, the second half growth contemplated in our revised guidance.
Speaker Change: A continued focus on generating leverage from our operating expenses.
Speaker Change: and Stable Gross Margins are all expected to contribute to the anticipated achievement of our goal.
Kevin Green: We ended the second quarter with a cash position of $71.2 million of cash, cash equivalents, and short-term investments on the balance sheet. It's important to note that the amount drawn on our revolving letter credit declined from Q1 levels by $1.2 million, suggesting that our reported cash balance at June 30th could have been even stronger, but that we could possibly generate positive operating cash flow. Here too, we delivered a positive operating cash flow of $0.4 million in the second quarter, compared to cash used from operations of $7.6 million during the prior year period, which together could provide us with the components necessary to report positive operating cash flows in subsequent periods.
Speaker Change: on the balance sheet and associated cash flows.
Speaker Change: We ended the second quarter with a cash position of $71.2 million of cash, cash equivalents, and short-term investments on the balance sheet.
Speaker Change: It's important to note that the amount drawn on our revolving letter credit declined from Q1 levels by 1.2 million dollars.
Speaker Change: suggesting that a reported cash balance at June 30th could have been even stronger.
Speaker Change: At the beginning of the year, we foreshadowed that not only was achieving a positive adjusted EBITDA goal, but that we could possibly generate positive operating cash flows.
Speaker Change: Here, too, we delivered a positive operating cash flow of $0.4 million to the second quarter.
Speaker Change: compared to cash used from operations of $7.6 million during the prior year period.
Speaker Change: While we aren't providing formal guidance on cash flows for 2024, we are keenly focused on continued improvement of our bottom line results and tight management of working capital.
Speaker Change: which, combined, could provide us with the components necessary to report positive operating cash flows in subsequent periods.
Kevin Green: As both Obi and Vivek described, we are increasingly confident in our growth expectations, and as such, we are raising our full year 2024 product revenue guidance to the range of $175 to $178 million. We are reiterating our full year 2024 revenue guidance for IFC, which we continue to expect to be in the range of eight to ten million dollars. With that, I'd now like to turn the call back over to Obi for a closing remark. Thank you, Kevin.
Speaker Change: Turning now to our guidance.
Speaker Change: As both Obi and Vivek described, we are increasingly confident in our growth expectations, and as such, we are raising our full year 2024 product revenue guidance to the range of $175 to $178 million.
Speaker Change: from our prior guidance range of $172 to $175 million.
Speaker Change: We are reiterating our full year 2024 revenue guidance for IFC, which we continue to expect to be in the range of $8-10 million.
Obie Greenman: Thank you, Kevin. The Sears team continues to advance the Intercept blood system in many markets and is looking forward to potential product approvals in the year ahead. The focused geographic expansion of our commercial effort combined with the growing IFC business is providing for increased confidence in how we continue to ramp up penetration and increase revenue. Particularly in the case of ISC, the many positive case studies of routine use now coming from hospitals across the U.S. are validating the target product profile that we developed for IAF, to address an unmet clinical need, safe and readily available fibrinogen complex products that are easy to use by the hospital transfusion service staff have found their place within hospitals and their anesthesiology and surgery teams.
Speaker Change: With that, I'd now like to turn the call back over to Obie for closing remarks.
Obie Greenman: Thank you, Kevin. The Sears team continues to advance the Intercept blood system in many markets and is looking forward to the potential product approvals in the year ahead.
Speaker Change: The focused geographic expansion of our commercial effort, combined with the growing IFC business, is providing for increased confidence in how we continue to ramp penetration and increase revenue.
Speaker Change: Particularly in the case of IFC, the many positive case studies of routine use now coming from hospitals across the U.S. are validating the target product profile that we developed for IFC.
Speaker Change: to address an unmet clinical need.
Speaker Change: Our safe and readily available fibrinogen complex product that is easy to use by the hospital transfusion service staff.
Obie Greenman: Our leadership team recently sat down to review where we've been, where we are, and where we're going. There's so much detail and complexity in our history that it's often easy to overlook the key achievements and what Cerus has evolved from where it began, with Intercept increasingly becoming the standard of care in multiple countries across the globe. We are committed to achieving our adjusted EBITDA targets to enable the self-funding of our product portfolio and continued geographic expansion that will allow us to realize our important mission as a company. Thank you for your continued interest in Cerus. I will now turn the call over to the operator.
Speaker Change: has found its place within hospitals and their anesthesiology and surgery teams.
Speaker Change: Our leadership team recently sat down to review where we've been, where we are, and where we're going.
Speaker Change: There is so much detail and complexity in our history that it is often easy to overlook the key achievements and what Cerus has evolved to from where it began.
Speaker Change: With Intercept increasingly becoming the standard of care in multiple countries across the globe, we are committed to achieving our adjusted IPITA targets to enable the self-funding of our product portfolio and continued geographic expansion that will allow us to realize our important mission as a company.
Operator: As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. One moment for questions. Our first question comes from Ross Osborn with Cantor Fitzgerald. You may proceed.
Speaker Change: Thank you for your continued interest in Cerus. I will now turn the call over to the operator for questions.
Speaker Change: Our first question comes from Ross Osborn with Cantor Fitzgerald. You may proceed. Hey guys, thanks for taking our questions and congrats on the strong results.
Ross: So starting off, we'd be curious to hear if you saw any rebuilding of the inventory following your visit to Shelf Life. As a follow-up, where do you stand on further easing Point Lake Shelf Life? Thanks, Ross. Vivek, would you mind taking this?
Ross Osborn: We, in terms of extending the shelf,
Vivek: Ah, sure. No problem. So, we, in terms of extending shelf life,
Speaker Change: We anticipate filing later this year for the 18-month shelf life, so to get back to where we were prior to the dating issues. And in the quarter, we didn't see any significant rebuilding of inventories, but we continue to see a driving unemployment. The growth was really just...
Speaker Change: All of this was made to pay and then distribute the product, so there was not any material inventory rebuild at the customer level in the second quarter.
Speaker Change: Okay, got it. And then looking at HEMA Quebec, could you provide some more color on exactly where they stand in the validation process and when we could start to see some incremental revenue from them?
Vivek Jayaraman: Sure, so their validation is.
Speaker Change: Sure. So their validation is
Speaker Change: They are going to follow a path that's similar to what happened with Canadian Blood Services where they'll have a small portion of their ovular inventory that's pathogen reduced and then upon sort of successful completion of that trial phase move towards full implementation. So we're anticipating.
Speaker Change: That initial piece of their inventory to be passed and reduced in calendar year 2025, with 2016 being the year where we go towards full implementation.
Ross Osborn: Great. Thanks for taking our questions and congrats again on the results.
Speaker Change: Great. Thanks for taking our questions and congrats again on the results.
Kevin Green: Hey, good afternoon, and I'll add my congratulations on the quarter and maybe start with the highlight of the quarter, just the positive EBITDA we saw in the quarter. Kevin, as we think about the back half of the year, I know you're talking about breakeven for the fiscal year, but presumably, we should see revenues up in the back half of this year. Is there any way or any reason why we wouldn't see better revenue in the back half and continue this trend of positive EBITDA that you saw in?
Speaker Change: Thank you.
Speaker Change: Our next question comes from Jacob Johnson with Stevens. He may proceed.
Jacob Johnson: Hey, good afternoon, and I'll add my congrats on the quarter, and maybe starting with the highlight of the quarter, just
Jacob Johnson: the positive EBITDA we saw in the quarter.
Jacob Johnson: Kevin, as we think about the back half of the year, I know you're talking about breakeven for the fiscal year, but...
Speaker Change: Presumably, we should see revenues up in the back half of this year. Is there any way or any reason why we wouldn't see better revenue in the back half continue this trend of positive EBITDA that you saw in 2Q?
Kevin Green: Yeah, thanks. You're absolutely right, our guy. Fairly stable gross margins for the balance of the year and continue to expect that we'll get increasing leverage from our operating expenses. So, all three of those suggest strength in the non-gap adjusted EBITDA results for the back half of the year and give us a lot of confidence in our statements that will achieve our goal.
Kevin: Yeah, thanks. You're absolutely right, as our guidance suggests.
Jacob Johnson: We do expect pretty strong growth in the back half of the year. In addition, and as stated in our prepared remarks, we do expect
Jacob Johnson: fairly stable growth margins for the balance of the year.
Jacob Johnson: and continue to expect that we'll get increasing leverage from our operating expenses. So, all three of those.
Jacob Johnson: suggest strength on the non-gap-adjusted EBITDA results for the back half of the year and give us a lot of confidence in our statements that will achieve our goal.
Vivek: Got it. Thanks for that, Kevin. And then maybe for Vivek, on IFC, I heard you mention a couple things. Just as we think about the growth outlook for that product line,
Speaker Change: I'm curious about how much of an opportunity there is from expanding within
Speaker Change: your current hospital customers that you're in today and doing more with them.
Speaker Change: How impactful could new hospital wins be? And then I'm just curious too on the capacity side, it sounds like some more blood centers to come online. Is that something that's maybe constraining you in particular geographies? If you could kind of unpack some of those dynamics, thanks.
Vivek Jayaraman: Yeah, sure, I'd be happy to, and certainly please follow up if... The fact is, the vast majority of candidate hospitals to use ISC that haven't started yet are larger than our current user base. So we're, you know, it's really,
Speaker Change: Yeah, sure, I'd be happy to, and certainly please follow up if I missed anything.
Jacob Johnson: [inaudible]
Speaker Change: as opposed to growth with new, sort of de novo customers. There's significant opportunity in both. We're just starting to get our first handful of customers that are.
Jacob Johnson: fully 100% converted to ISC, so it's same store sale. If I can express it that way, it provides meaningful opportunity for growth, but we're really early days in terms of.
Jacob Johnson: [inaudible]
Jacob Johnson: approach in terms of maintaining sustained growth. We are seeing a marked increase in demand and this
Vivek Jayaraman: It, but such that it's a sufficient supply so that we don't have to worry about constraining customers. And, you know, we now have four blood center production partners who receive DLAs so they can transport product across state lines. We're anticipating two more BLAs here in the very near future. And, you know, that combined production capacity supported by the BLAs, we believe, provides sufficient volume to support our growth expectations, both through the balance of the year and through 2025. We'll continue to monitor and track that closely. The other thing that's encouraging is that we're seeing blood centers; we're receiving blood.
Speaker Change: You know, we now have four blood center production partners who receive BLA so they can transport product across state lines. We're anticipating two more BLAs here in the very near future.
Speaker Change: You know, that combined production capacity supported by the DLAs, we believe, provides sufficient volume to support our growth expectations, both through the balance of the year and through 2025. We'll continue to monitor and track that closely. The other thing that's encouraging, and I think I've said this before,
Speaker Change: I mentioned earlier is that we're seeing blood centers, we're receiving inquiries.
Speaker Change: from the Blood Center who are hearing from there.
Speaker Change: key hospital customers they want to try and see and they're keen to be the...
Speaker Change: producers who provide them that product. So I anticipate over the near midterm we're going to see a pretty significant step up in terms of number of production partners. So on balance, it's still early days, but we're really encouraged.
Ross Osborn: Sounds like a bunch of white space. Good luck with that, Vivek, and thanks for taking the question. Great, thank you.
Speaker Change: are encouraged principally by the clinical value and utility of ISC and the fact that physicians are in fact validating our value proposition.
Speaker Change: Sounds like a bunch of white space. Good luck with that, Vivek, and thanks for taking the questions.
Operator: Our next question comes from Josh Jennings with TD Cowell, and you may proceed.
Eric Anderson: Hi guys, this is Eric on behalf of Josh. Thank you for taking the question. As a follow-up on IFC there, congratulations on the progress. If I could, I was just wondering if you could lay out sort of a road map of how you're thinking about growth for IFC in 2025. The industry has total serious sales in the $190 to $200 ballpark. Could IFC be 10% of those sales next year? Is that, do you think, a good starting point? Just curious with all the growth here?
Vivek Jayaraman: Kevin, I'll be happy to defer to you in terms of quantifying the number. I certainly know the expectations we have in India. Well, I mean, clearly, we're not providing guidance for 2025 here. But Vivek, I think you can speak to sort of the growth opportunity that's in front of us and sort of calibrate a range. You know, obviously, we're guiding, Eric, as you know, $8 to $10 million for this year. Anything else you would add, Vivek? No, I think, I mean... You know, once we get to 2025 numbers here, you know, in future quarters, I think that's kind of a rough rule of thumb.
Speaker Change: For the next few years will be a meaningful contributor to allowing us to continue to grow.
Kevin Green: And just if I could, I'd be remiss if I didn't say that we expect that growth to be largely leverageable, right? So not all the hot incremental investments, as Vivek just mentioned that we've made those in the past and they're now bearing fruit. So I think that holds, and bodes well for the bottom.
Speaker Change: To drive compelling growth on the top line.
Speaker Change: And just if I could I'd be remiss, if I didn't say that we expect that growth to be largely leveraged level right. So not a lot of incremental investments. It's a as I just mentioned.
Speaker Change: We've made those in the past and they are now bearing fruit so.
Eric Anderson: And for the Intercept Red Blood Cell Program, I was hoping to hear an update on your progress in the EU there. Just what are the remaining steps between where we stand now and potential clearance? I think last quarter you mentioned that you guys had completed a complete response with the notified body. I was just wondering what the update is. Thank you.
Speaker Change: I think that bodes well for the bottom line impact as well.
Speaker Change: Understood that makes sense.
Speaker Change: And for the intercept Red blood cell program I was hoping to hear an update on your progress in the EU there.
Speaker Change: What are the remaining steps between where we stand now and our potential clearance I think last quarter. You mentioned that you guys had completed a complete response with the notified body I was just wondering what the update is there. Thank you.
Vivek Jayaraman: Yeah, Eric, so just to remind you and others about the process, so we have, we still have to hear back from our competent authority, which is the CBG MEB based out of the Netherlands. We still have not heard back from them yet, and it may be due to the summer holidays, so we do expect to hear something after the European holidays are over, so possibly before the end of the quarter, and then once they get back to us with sort of their definitive opinion, then it goes back to our notified body, which is TUV, and then that moves on to an approval decision, so I think at this point in time, it's, we're still waiting for the CBG MEB response, but as you mentioned, we did feel like we provided a complete response to their questions earlier in the year.
Eric Anderson: Thanks, Eric.
Speaker Change: So just to remind you and others about the process. So we have we still.
Operator: Thank you. And as a reminder, to ask a question, please press star one one on your telephone. One moment for questions. Our next question comes from Mark Massaro with BTIG. You may proceed.
Speaker Change: We'll have to hear back from our competent authority, which is the CB GMB based out of the Netherlands.
Speaker Change: We still have not heard back from them, yet and it may be due to the summer holidays. So we do expect to hear something after the European holidays are over so possibly.
Speaker Change: Before the end of the quarter.
Speaker Change: And then once the.
Speaker Change: Get back to us with sort of their definitive opinion, then it goes back to our notified body, which is <unk>.
Speaker Change: And then that moves on to an approval decision. So I think at this point in time.
Speaker Change: Waiting for the <unk> response.
Speaker Change: And as you mentioned, we did feel like we provided a complete response to their questions.
Speaker Change: Earlier in the year.
Speaker Change: Understood. Thank you guys for taking my questions.
Speaker Change: Thanks, Eric.
Speaker Change: Thank you and as a reminder to ask a question. Please press star one on your telephone one moment for questions.
Vivian: Hey guys, this is Vivian from Zoomark. Thanks for taking the questions. So I understand that the business is stabilizing here off of 2023 and sort of returning to growth. Just how are you thinking about sources of upside to the 24 guide? Just any additional variables to consider like e-stock and inventory or recovery of platelet donors?
Speaker Change: Our next question comes from Mark Massaro with BTG you May proceed.
Mark: Hey, guys participating in on for Mark Thanks for taking my question.
Speaker Change: The business is stabilizing here off of 'twenty, three kind of returning to growth.
Speaker Change: Are we thinking about sources of upside to the 24 guide.
Speaker Change: Just any additional variables to consider like Destocking inventory.
Speaker Change: We're covering platelet donors.
Vivek Jayaraman: Sure, I'd be happy to. So, in terms of how our
Vic: Thanks Vision Vic would you like to handle this one as well.
Vic: Sure I'd be happy to do so.
Mark: No.
Speaker Change: In terms of how we're our outlook.
Mark: For the full year and our confidence.
Mark: Sort of underpinning the raise in full year guidance.
Mark: We are not currently forecasting any rebuild customer level inventory to be a driver of the revenue upside.
Mark: We want to make sure that we can maintain healthy safety stock and our customers, but we're not anticipating an inventory rebuild at this time, it's kind of a onetime revenue driver. We are seeing signals of a stabilizing collection and utilization markets increased hospital demand.
Mark: For platelets and then some stabilization that.
Mark: Blood center level in terms of collection.
Mark: Really driving the growth is continued.
Mark: And due to the Hasnt for an adoption of <unk>.
Mark: Intercept platelets and our ability to see those products produced and ultimately distributed to hospitals. So.
Mark: And then in addition, as we talked about.
Mark: Prior question the demand on the IFC side continues to grow and in parallel our ability through our production partners to produce supply is growing as well. So we see continued growth in the IFC franchise in the second half of the year. So it's really the combination of those factors that give us confidence in our ability to continue.
Vivek Jayaraman: [inaudible]
Mark: Two.
Mark: Top line progress.
Speaker Change: Okay understood.
Speaker Change: And then I think of where you guys.
Mark: Briefly touched a little bit on the Nextgen illuminator.
Speaker Change: Could you just help us think about some of the features.
Speaker Change: Quantify the planned improvements there.
Speaker Change: You could also remind us what the thinking is on in terms of timing of that regulatory submission.
Speaker Change: Yeah. Thanks, <unk>. So one of the key things we were trying to achieve with the Nextgen luminaire or we call. It <unk>.
Mark: 200 <unk>.
Speaker Change: This would increase the operational ease of use for blood center customers and.
Vivek Jayaraman: Perfect, understood. And then I think I heard you guys briefly touch on the Next Gen Illuminator. So could you just help us think about some of the features and help us quantify the planned improvements there? And if you could also remind us what the thinking is on in terms of timing of the regulatory approvals?
Speaker Change: Also reduced the space that they needed because a lot of these blood centers.
Mark: Our very space constrained so right now the return of luminaire.
Vivek Jayaraman: are very space-constrained. So right now, the current Illuminator, the INT-100, will take up some space of three INT-200s.
Speaker Change: <unk> 100 will take it takes some spaces of three inch T 200, so it really is.
Mark: Space ever for these blood centers, but it's also a lot easier to use with regard to through the graphical user interface.
Vivek Jayaraman: So it really is a space saver for these blood centers, but it's also a lot easier to use with regard to sort of the graphical user interface and just sort of the reliability of the system. So, as I mentioned in my prepared remarks, we're really happy to see sort of the feedback from customers at ISBT in Barcelona. It was the customers who we engaged early on in the development of this device, and they were really happy with, you know, how their feedback led to this final result.
Mark: And just sort of the reliability of the system. So.
Speaker Change: As I mentioned in the prepared remarks, we're really happy to see sort of the feedback from customers at <unk> in Barcelona.
Speaker Change: The customers, who we engaged early on in the development of this device and they were really happy with how their feedback led to this final result, we are looking to file for approval here in the relatively near term and it's roughly going to be about 180 day review.
Vivek Jayaraman: We are looking to file for approval here in the relatively near term, and it's roughly gonna be about a 180 day review cycle for CE mark approval in Europe. So that product, we expect to launch in 2025.
Speaker Change: Cycle for CE, Mark approval in Europe, So that product, we expect to launch in 2025.
Vivian: Understood. Thanks for asking the questions.
Speaker Change: Understood. Thanks for taking my questions.
Operator: Our next question comes from William Bonello of Craig Hallam Capital Group. Please proceed.
Speaker Change: Please go ahead.
Speaker Change: Thank you.
William Bonello: Hey guys, just wondering if you can give an update on, you know, international opportunities and any sort of pending opportunities outside of North America.
William <unk>: Our next question comes from William <unk> with Craig Hallum Capital Group You May proceed.
William <unk>: Hey, guys.
William <unk>: Just wondering if you can give an update on <unk>.
Speaker Change: International and any sort of.
Obie Greenman: Yeah, thanks, Phil. Vivek, would you mind taking this as well?
Speaker Change: Pending opportunities outside.
Speaker Change: Outside of North America.
Vivek Jayaraman: Sure, happy to. So, you know, we have, and I think we've talked about this previously, but, you know, we continue to make good progress on our joint venture in China. We anticipate learning by the end of this year whether or not there will be a need for a local clinical study.
Paul: Yes, Thanks Paul.
Speaker Change: Would you mind, taking this as well.
Speaker Change: Yeah.
Speaker Change: Sure happy to so we have and I think we've talked about this.
Speaker Change: <unk>, but.
Speaker Change: We continue to make good progress on our joint venture in China, We anticipate learning by the end of this year, whether or not there'll be a need for our local clinical study but.
Speaker Change: The underlying clinical demand and interest in intercept remains quite high in that geography, so that will be that's it.
Speaker Change: Fantastic growth opportunity for us really materializing.
Speaker Change: Or is the back part of this decade similarly.
Speaker Change: The strong distributor partner in the Middle East, there's a significant push towards health care investment in the Kingdom of Saudi Arabia, and we're seeing.
Speaker Change: Strong growth there and a lot of.
Speaker Change: Practice patterns in the Middle East Mirror, what happened in the U S.
Vivek Jayaraman: Unit Opportunity in Western Europe is Germany, and what's encouraging there is that the largest blood centers and hospitals are going through the marketing authorization, marketing license, and regulatory process. So those are sort of three snapshot examples of geographies where we think they can drive significant international growth. We have a strong team on the ground in EMEA, and you know they really have been executing well through the first half of this year. So the international franchise is certainly a significant component of our future growth plans.
Speaker Change: Alternative ABB FDA standards and then we continue the single largest.
Speaker Change: Unit opportunity in Western Europe is Germany, and what's encouraging there is the largest blood centers and hospitals are going through that.
Speaker Change: Marketing authorization in marketing lessen the regulatory process and so those are sort of three snapshot examples in geographies, where we think can drive significant international growth.
Speaker Change: We have a strong team on the ground in EMEA and they really are and executing well through the first half of this year. So the international franchise certainly is a significant component of our future growth plans. It's also going to be at the initial commercial geography for the products in our pipeline. So that's where we will introduce DLA illuminator first as well as <unk>.
Vivek Jayaraman: It's also going to be the initial commercial geography for the products in our pipeline. So it's where we'll introduce the LED illuminator first as well as intercept red cells. So it really continues to be a valuable part of our franchise.
Vivek Jayaraman: And when you think about some of those opportunities, and as you start to look at sort of next year, and you think about the magnitude, I mean, are these the kinds of things that could actually drive an accelerating growth rate for you? Or do you look at it as more, no, you know, we have to add some of these big, oh, you know, non-North American clients to just sort of keep up with the growth that
Speaker Change: Red cells so.
Speaker Change: It really continues to be a valuable part of our franchise.
Speaker Change: And when you think about some of those opportunities.
Speaker Change: And as you start to look at it sort of to next year and you think about the magnitude. I mean are these are the kinds of things that could actually drive an accelerating growth rate for you or do you look at it as more no we have to add some of these these big though.
Speaker Change: Non north American clients to just sort of keep up with the growth that we got out of adding Canada and whatnot.
Vivek Jayaraman: It's a little bit of both, candidly because part of it is a function of the size of the geographic opportunity and the potential ramp. You know, you look at our history; you have some geographies that are significantly sized, but they have more sort of a vulcanized customer base. And so it takes a while to get folks on board. Other countries that have significant volumes have a single decision maker, and once they decide to go, then it really becomes about operations and partnering with our deployment organization.
Speaker Change: Over the past couple of years.
Speaker Change: It's a little it's a little bit of both.
Speaker Change: Candidly because part of it is a function of the size of the geographic opportunity and the potential ramping as you look at our history you have some geographies that are significantly sized but they have more of a sort of bulk a nice customer base and so it takes a while to get folks onboard other.
Speaker Change: Countries that have significant volume had a single decision maker and once they decide to go and then it really becomes about operations and partnering with our deployment organization and in those geographies I mentioned theres kind of a mix of both customer types are part of it is who goes when and how quickly we can ramp up that's why in parallel I mentioned I.
Vivek Jayaraman: And in those geographies I mentioned, there's kind of a mix of both customer types, so part of it is who goes when and how quickly we can ramp up. You know, that's why, in parallel, I mentioned, I referenced it in the context of IFC, but also across our platelet franchise, we're trying to make sure that we have sufficient supply to stay ahead of demand. But, you know, I think you're going to see Certainly in the U.S., the IFC franchise has a significant growth opportunity, but internationally, some of the geographies as they come on, it's not merely sort of maintaining our growth rate, but if they go well, we could certainly see some upside there. Okay.
Speaker Change: That in the context of IFC, but also across our platelet franchise or trying to make sure that we have sufficient supply to stay ahead of demand but.
Speaker Change: I think youre going to see.
Speaker Change: Certainly in the U S. The IC franchises and significant growth opportunity, but internationally. Some of these geographies as they come on it it's not merely sort of maintaining our growth rate, but if they go well we could certainly see some upside there.
Speaker Change: Okay. Thank you very helpful.
Bill: Thanks Bill.
Obie Greenman: Well, thank you again for joining us today. We look forward to keeping you informed of our progress throughout the rest of 2024 through quarterly calls and upcoming investors.
Speaker Change: Thank you I would like to turn the call back over to Obi Greenman for any closing remarks.
Obi Greenman: Well. Thank you again for joining us today and for your interest in Cerus, we look forward to keeping you informed of our progress throughout the rest of 2024 through quarterly calls and upcoming investor conferences. Thanks very much.
Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.
Unnamed: [inaudible]
Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Vivek Jayaraman: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Yes.
Okay.
Speaker Change: Okay.
Speaker Change: [music].
Unnamed: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Unnamed: Yes.
Yes.
Speaker Change: Sure.
Obie Greenman: [music].
Speaker Change: Okay.
Speaker Change: Thank you.
Unnamed: [music].
Unnamed: Okay.
Speaker Change: Thank you.
Unnamed: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Unnamed: Yes.
Unnamed: Okay.
Vivek Jayaraman: Okay.
Unnamed: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Unnamed: [music].
Unnamed: Okay.
Speaker Change: Okay.
Speaker Change: Okay.
Unnamed: [music].
Unnamed: Okay.
Unnamed: [music].
Unnamed: Okay.
Unnamed: [music].
Unnamed: Yes.