I’ve been accumulating $CERS again recently after a rough start earlier in the year. This time, I think I will just hold it for the fundamental reason that, in my opinion, the services offer by $CERS’ products may become a standard requirement for all blood banks in the future.
As our population grows, it increases the need for more blood in the blood banks. By utilizing $CERS products, blood banks can eliminate the risk of contaminated blood.
It is this simple.
European countries are already using $CERS’ products. Cerus is now waiting for FDA to approve the use of its product in the US. What is the odd of FDA disapproving it when the products have already been in use by other countries?
In summary, there is a large market in the US for Cerus to tap into once FDA gives its nod. Thus, the risk in this play is really the decision of the FDA. Oh wait, this is nothing new here in the land of biotech…
But then I’m willing to wager that the FDA approval of Cerus product is as “fill in the blank” as approving $AMRN for their mid-trig (200-500) level use.
Now you see why I’m betting on this one, eh?
Take a look at the monthly chart below. I like to see the $10 target reach in the early 2014 if not sooner.
Today price action took out $6 resistance; naturally, I added a bit more because of this breakout.
My 2 cents.
Below is information from $CERS website on how its product works:
How INTERCEPT Works
The INTERCEPT Blood System for platelets and plasma employs the unique properties of our amotosalen HCl molecule to block the replication of DNA and RNA, preventing the proliferation of susceptible pathogens. For red blood cell pathogen inactivation, a similar treatment process has been developed using a different molecule called S-303.
Platelets and red blood cells are not inactivated by the crosslinking process because they do not require nucleic acids to function. Plasma is not inactivated by the treatment because it is an acellular product (proteins and liquid).
The interactions of amotosalen and S-303 with DNA and RNA are highly specific and occur with high frequency even at low concentrations of nucleic acids (Fig.1). Once inside a pathogen, the compounds dock in between the nucleic acid base pairs. Upon illumination with ultraviolet A light (amotosalen) or a change in pH (S-303), an interstrand crosslink is formed, “locking” the DNA or RNA together so that it can no longer replicate. These reactions require UVA light or pH change, and will not continue in the absence of these conditions.Figure 1
Broad Spectrum of Inactivation
The crosslinking activity of amotosalen and S-303 is not limited to particular nucleic acid sequences or specific families of pathogens, so unlike testing procedures this blood safety method does not rely upon advance identification of potentially harmful organisms. The replication of a broad spectrum of viruses, bacteria and parasites, as well as leukocytes, can be inactivated with these treatment processes.