Cerus stock plunges 16% after news of temporary impact to US blood centers, revenue warning

Cerus Corp. stock plunged 16.2% to $2.52 in Tuesday morning trade after the company said it expects a supply shortage of a platelet additive solution to temporarily affect some U.S. blood centers and affect the company's 2017 revenue. Cerus decreased its 2017 product revenue guidance from $43 million to $48 million to $38 million to $46 million accordingly. Fresenius Kabi [s:DE:FRE], the maker of the platelet additive solution, had no expected a delay in the Food and Drug Administration's approval of a plastic component used to make the solution, Cerus said. The original piece had been discontinued by Fresenius Kabi's supplier, Cerus said, and Fresenius Kabi is working to fix the delay and minimize supply disruption. Cerus's Intercept blood system for platelets is used to deactivate things like viruses and bacteria in platelet components and ensure platelets' safety; Fresenius Kabi's Amicus platform works to separate cells and collect platelets. Availability of Fresenius Kabi's platelet additive solution is "essential" for customers who make Intercept platelets on the Amicus platform to keep producing pathogen-reduced platelets, Cerus President William Greenman said, and the issue could affect impacted blood centers through the end of this year. Intercept platelets can also be produced in 100% plasma, without platelet additive solution, on the Trima Accel apheresis platform, though blood centers may only have one platform, Cerus said. Cerus shares have dropped 40.6% over the last three months, compared with a 1.3% rise in the S&P 500 .

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