#2 --- Cerus stock price target unchanged as TD Cowen cites evolving EU strategy and increased BARDA funding Investing.com Editor Ahmed Abdulazez Abdulkadir Company News Published 10/17/2024, 11:02 AM
Cerus stock price target unchanged as TD Cowen cites evolving EU strategy and increased BARDA funding
On Thursday, TD Cowen maintained a positive outlook on Cerus (NASDAQ:CERS) Corporation (NASDAQ:CERS) despite a recent setback in its European regulatory progress. The firm reiterated its Buy rating and a $5.00 price target for the blood transfusion company.
Cerus recently encountered a challenge with its CE Mark application for the INTERCEPT Red Blood Cell (RBC) system in Europe, which did not receive approval. Following this, the company is exploring alternative strategies for CE Mark submission. Despite this hiccup in Europe, Cerus is making strides in the United States with its RBC program. The company is planning a Pre-Market Approval (PMA) submission after the completion of its ReDeS clinical trial.
Moreover, Cerus has secured substantial support from the U.S. government, with the Biomedical Advanced Research and Development Authority (BARDA) committing up to $248 million in additional funding. This funding is designated to further the development of the INTERCEPT blood system, which is designed to enhance the safety of blood transfusions by inactivating a broad range of pathogens such as viruses, bacteria, and parasites that may be present in donated blood.
The analyst from TD Cowen highlighted these developments, noting the company's ongoing efforts to advance its blood safety system in the U.S. market. With the additional BARDA funding, Cerus is expected to continue its progress despite the regulatory challenges faced in the European Union.
Investors and stakeholders in Cerus Corporation continue to watch the company's advancements in blood safety technology and its efforts to navigate regulatory pathways in different markets.
The support from BARDA underscores the potential of the INTERCEPT blood system to address critical needs in transfusion medicine.
In other recent news, Cerus Corporation has experienced a series of significant developments.
The biomedical company's annual product revenue guidance for 2024 has been revised upwards to between $175 million and $178 million, marking a substantial increase from the previous range of $172 million to $175 million. This adjustment is largely due to a 16% year-over-year growth in product revenue, primarily driven by the increased use of Cerus' INTERCEPT blood system.
Furthermore, Cerus has secured a contract with the Biomedical Advanced Research and Development Authority (BARDA) valued at up to $248 million.
This contract will support the development of its INTERCEPT red blood cell (RBC) system in the United States.
However, the company recently faced a setback when the European Union's review of its INTERCEPT RBC product concluded without granting approval, citing the need for additional data.
On the analyst front, Stifel has adjusted its price target for Cerus to $3.00, down from the previous $6.00, but maintains a Buy rating on the stock.
Meanwhile, BTIG analysts have reiterated a Neutral rating for Cerus, following the company's stronger-than-expected performance in the second quarter.
InvestingPro Insights While TD Cowen maintains a positive outlook on Cerus Corporation (NASDAQ:CERS), recent InvestingPro data provides additional context for investors.
Despite the company's revenue growth of 10.79% over the last twelve months as of Q2 2023, Cerus is not currently profitable, with an adjusted operating income of -$14.48 million for the same period.
This aligns with one of the InvestingPro Tips, which indicates that analysts do not anticipate the company will be profitable this year.
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