Cerus Corporation

What they do

Cerus develops and sells the INTERCEPT Blood System, which uses proprietary technology to reduce blood-borne pathogens in platelets, plasma, and red blood cells. The platelet and plasma systems are approved and marketed in the U.S., Europe, and other regions; the red blood cell system is in development. The company also sells INTERCEPT Fibrinogen Complex (IFC) kits and disposable kits for cryoprecipitation in the U.S.

Revenue drivers

• INTERCEPT Blood System for platelets and plasma — Core commercial products sold via direct sales force and distributors; generated product revenue of $57.4M in Q2 2026, up 10% Y/Y.
• INTERCEPT Fibrinogen Complex (IFC) — U.S. sales totaled $6.7M in Q2 2026, up from $5.6M in prior year; management cites it as a compelling growth driver.
• Government contract revenue — Revenue from BARDA and DoD contracts; $5.9M in Q2 2026, down 24% Y/Y due to completion of FDA contract and wind-down of BARDA 2016 contract.

Recent performance

Q2 2026 total revenue was $63.3M, up 5% Y/Y; product revenue was $57.4M (+10% Y/Y), with growth across all product categories. Gross margin fell to 51.4% from 55.2% due to weaker U.S. dollar and inflationary costs. Cash, equivalents, and short-term investments were $56.3M at June 30, 2026. Full-year 2025 revenue was $233.8M with net loss of $15.6M; Q2 2026 product revenue of $57.4M was the highest quarterly figure reported.

Strategy

Cerus is focusing on expanding patient access to safer blood components, particularly driving U.S. adoption of IFC. The company submitted a PMA to the FDA for the next-generation LED-based illuminator (INT200) and expects a decision in early 2027. They are advancing the red blood cell system, including a new MDR application in Europe and a planned modular PMA in the U.S. Management is also managing costs and optimizing the supply chain to address inflationary pressures.

Risks

• Red blood cell system regulatory uncertainty — The MDR application was closed in 2024 due to insufficient data; a new application was submitted but certification timing is unpredictable, and the system may never receive approval.
• Gross margin pressure — Q2 2026 gross margin declined to 51.4% from 55.2% due to a weaker U.S. dollar and higher product costs from inflation.
• Dependence on sole-source suppliers — The company relies on sole-source suppliers for certain products/components, which could disrupt supply if they fail to perform.
• Government contract funding uncertainties — Revenue from BARDA and DoD contracts is subject to potential funding cuts, executive orders, government shutdowns, and other disruptions.

Outlook

Management raised the lower end of 2026 product revenue guidance to a range of $229-$231 million. IFC sales outlook was raised to $23-$25 million, up approximately 40%-50% Y/Y. Q2 2026 saw continued growth in IFC volumes (up ~20% Y/Y). The PMA for the INT200 illuminator is expected to be decided in early 2027, and the BARDA collaboration for the red blood cell system was expanded by $21.9 million.