By M. Marin
58% Y/Y Growth, Including CytoSorb For COVID-19 Treatment, Drives Need To Expand Production
Cytosorbents (NASDAQ:CTSO) raised nearly $57.5 million in an over-subscribed equity offering at $9.50 per share, with funds earmarked to expand manufacturing capacity, fund clinical studies to advance CTSO’s product portfolio and expand the direct sales team. We estimate pro forma cash at over $85 million.
CTSO also has been extremely successful at minimizing its cash burn for R&D by leveraging grants and government awards. CTSO continues to advance HemoDefend and recently received a U.S. Army research award for up to $4.4 million and a Defense Health Agency Small Business Technology Transfer (STTR) contract for up to $2.9 million for HemoDefend.
The company also pre-announced key metrics from 2Q20 results. Revenue reached a record $9.8 million in 2Q20, up 58% y/y despite hospital mandates to delay many cardiac surgeries. Strong demand, including for COVID-19 treatment, drove delivery of more than 98,000 CytoSorb treatments in the last 12 months, up from 67,000 in the prior year, a greater than 46% advance. This equates to sales of roughly $30 million over the past 12 months and illustrates that sales of CytoSorb have increased at a CAGR of roughly 56% in the past five years. CTSO plans to report 2Q20 results on August 4.
Database of Evidence Supporting Utility of CytoSorb Continues to Grow
We believe CytoSorb treatment for COVID-19 and cytokine storm continues to produce data that adds to the database of evidence supporting the utility of CytoSorb. As this database continues to grow, we believe it will be a key catalyst in driving awareness, adoption and utilization of CytoSorb.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks provides and Zacks receives quarterly payments totaling a maximum fee of $40,000 annually for these services. Full Disclaimer HERE.