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 The Department of Health and Human Services (HHS) said the funding
will flow through its Biomedical Advanced Research and Development
Authority (BARDA) unit, which will provide initial funding of $30.8
million to Cerus Corp and $17.5 million to the U.S. division of
Japan's Terumo Corp.
Cerus's Intercept technology has already been approved by the Food
and Drug Administration to reduce pathogens in platelets and plasma.
It is conducting a trial to show it can also reduce pathogens in red
blood cells.
BARDA's agreement with Cerus includes $10.7 million to help evaluate
the safety of the blood system in Puerto Rico, which is hard hit by
the current Zika epidemic. The initial three-year contract could be
extended for up to five years and include an additional $149 million
to cover more studies, manufacturing and new products, including
additional testing in regions where Zika is prevalent.
The contract with Terumo is to further develop its Mirasol System to
confirm its can reduce the risk of infection through platelets. The
contract may be extended up to a total of six years and $151.8
million to cover additional studies, manufacturing and new product
development, including the expansion of the system for use with
plasma.
BARDA also has the option to fund tests using the Mirasol system
specifically against the Zika virus, HHS said.
"Both systems have been shown to reduce the presence of certain
bacteria, viruses and parasites in blood components, though to
varying degrees," HHS said in a statement.
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The safety of blood products, including red blood cells, plasma and
platelets, is typically ensured through donor screening and testing
of donated blood. Pathogen reduction technologies would complement
existing systems to reduce the presence of viruses in various blood
components.
"In particular," HHS said, "the technologies can reduce the risk of
transmitting emerging infectious diseases for which robust screening
and testing methods may not yet be available."
Cerus's shares rose as high as $6.37 in morning trading on Nasdaq
before slipping back to $6.20, or up 8.8 percent, at midday.
(Reporting by Toni Clarke in Washington; Editing by Bernard Orr)
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