Here's Why Cerus' Stock Gained 8% On Tuesday

Shares of Cerus Corporation CERS surged higher by more than 8 percent on Tuesday after the company announced it has entered into a new multi-year agreement with the American Red Cross.

According to Cerus' press release, the American Red Cross has agreed to a multi-year purchase agreement for Cerus' INTERCEPT Blood System for platelets and plasma. The Red Cross is the largest supplier of blood products in the U.S. as it distributes around 780,000 platelets and 1.1 million plasma units to nearly 2,600 hospitals and transfusion centers nationwide.

"This agreement with the Red Cross represents a pivotal step toward making INTERCEPT-treated components available to a majority of patients throughout the U.S.," commented William "Obi" Greenman, Cerus' president and chief executive officer. "Working closely with the Red Cross as part of the TRUE study in Puerto Rico has provided both organizations with important operational experience that we will be able to leverage as the INTERCEPT Blood System is broadly deployed at Red Cross sites nationally."

"The Red Cross is dedicated to blood safety vigilance including pathogen reduction. The INTERCEPT Blood System will serve as an intervention to protect patients against infection from emerging and potentially unknown blood-borne viruses, bacteria and parasites," said Dr. Susan Stramer, vice president, Scientific Affairs, Red Cross Biomedical Services.<?p>