Blood group Cerus shares plunge as it unveils Fresenius Kabi platelet additive shortage

Biomedical and blood group Cerus Corp (NASDAQ: CERS) shares plunged 9% in pre-market to $2.73 as it lowered its product revenue guidance for 2017.

The group said it expects a supply shortage of a platelet additive solution to temporarily affect some US blood centers, which would affect the top line.

Decreases product revenue guidance..

Cerus decreased its product revenue guidance for 2017 from between $43mln and $48 million to between $38mln to $46 million.

The group told investors it had received notification last week of a pending US supply shortage of a platelet additive solution (PAS) manufactured and sold by Fresenius Kabi, which says it’s is working with its suppliers and the FDA to resolve this delay.

A temporary supply shortage?

William ‘Obi’ Greenman, Cerus’ president and chief executive, said: ” For our customers who produce INTERCEPT platelets on the Amicus collection platform, availability of this Fresenius Kabi PAS product is essential to their continued production of pathogen reduced platelets.

“We understand that Fresenius Kabi anticipates the supply shortage will be temporary, and we believe the shortage could adversely affect INTERCEPT platelet production by impacted blood centers through year end.”

The firm’s INTERCEPT blood system aims to reduce the risk of transfusion-transmitted infections by inactivating a broad range of pathogens such as viruses, bacteria and parasites that may be present in donated blood.

Story by ProactiveInvestors