Financings In Brief

Baxter/Cerus: Baxter Capital Corporation aims to recall a $50 mil. loan to Cerus through legal proceedings, alleging that the firm's recent termination of Phase III clinical trials for the Intercept pathogen inactivation system for red blood cells constitutes default under the terms of the credit facility (1"The Gray Sheet" Sept. 8, 2003, p. 14). Cerus disagrees, asserting that interest and principle on the loan, which commenced in January, are not due until 2008. Cerus also notes it is cutting its current workforce by about 40 people, or roughly 25%, and R&D expenses for 2003 by approximately $5-$10 mil. The move will produce $20-$25 mil. in projected 2004 savings. The firms' relationship in developing Intercept for platelets is unaffected by the financing issue, Cerus says...