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Cytosorbents Corporation (OTCBB: CTSO) announced last week the entrance into an agreement with Lincoln Park Capital Fund that would, from time to time, allowing the company sell shares of CTSO for up to $8.5 million.

The move, according to a form 8-k filed with the SEC, will allow Cytosorbents to fund the commercialization of CytoSorb in Europe, while also funding the additional studies that may be needed to warrant a CytoSorb approval in other nations around the world, including the United States.

CytoSorb was approved in Europe earlier this year for the treatment of indications in which high cytokines are present, including severe sepsis for which there exists and unmet medical need. Since spiking to highs in forty cent territory, a quick triple in price, CTSO is back to trading in the low teens as the company undertakes a patient and methodical plan for the European roll-out of its flagship product.

A major concern among investors of the company has been its ability to fund operations moving forward. With the announcement of the Lincoln Park deal, some of those concerns may have been alleviated, at least for the time being, and could mean that CTSO is ready to again move higher.

Already this week,CTSO has returned modest gains with increased sizes in the bidding blocks. Although the price has yet to reflect significant growing interest from new investors, the foundations of a move higher may be shaping up as the company expects to start raking in revenue at an increasing rate as early as during the current quarter.

Aside from the European roll-out, another key catalyst would come in the form of a partnership.

Should the company land a partner to help fund European commercialization of CytoSorb, then that would most likely alleviate the need for any additional dilutive financing.

Another product was recently announced, however, that leaves positive partnership implications. The blood purifying HemoDefend, for which the company is actively seeking a commercial partner to bring to market, would allow Cytosorbents to collect royalty revenue while holding onto full rights for CytoSorb.

Such a scenario would also help to alleviate the need for dilutive financing.

In relation to the months-long share price decline following the approval spike, nothing negative has developed relating to news that would support the rapid price decline. While much of the retreat was most likely related to the departure of the day/swing/momentum traders moving on, investors also looked towards funding and wide-spread product acceptance as potential hurdles.

As for potential on the market, CytoSorb may become a game-changer in the standard of care for severe sepsis and other high cytokine conditions, as it was a noteworthy boost of confidence for the technology when the European regulators approved it before an ongoing, late stage trial was completed.

With funding now set, all eyes are on commercialization. Cytosorbents has backed up its commercial launch with a road show supported by positive trial data and is also seeking government support, as CytoSorb and HemoDefend have obvious military and national defense applications.

With 2011 already in the books as a milestone year for this company, look for 2012 as a potential year of solidified and sustained growth.

Disclosure: Long CTSO.