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Eisai's Phase III Trial Failure of Sepsis Drug Presents Opportunity for Cytosorbents Corp

|Includes:Eisai Co., Ltd. ADR (ESALY)

On January 25th Japan's Eisai announced that it scrapped its late phase III trial of its blockbuster-potential drug Eritoran after results indicated that its sepsis reduction potential data turned out to be no better than a placebo.  This is more than a minor setback for a drug touted to have potentially $2 billion in sales per Atsushi at Barclay’s.

 As Cytosorbent (OTCBB: CTSO) investors eagerly await the completion of Cytosorbent’s own blockbuster potential sepsis device, one can view the 3-month chart and its three accumulation areas and realize that the next leg up may come at any time.  Former Eisai investors may soon be moving money over to a device designed to remove the potentially sepsis-inducing cytokines directly via discreet particle size filtering rather than through chemical means.  This may be just enough catalyst to force the chart up another leg where it will possibly stay while investors await the press release announcing the long-anticipated trial completion.

 As of November 2010, 85 of the targeted 100 patients in Cytosorbent’s European sepsis trial had been treated, so we’re looking at the completion of the trial likely to be announced any day now.  With a chart trending up sharply and a nice convergence in the chart coming soon, traders and investors alike will be watching this microcap company come into its own in the medical device world.  The medical community’s, traders’ and investors’ expectations are high for Cytosorbents, so we have great anticipation of CE Mark  regulatory approval in Europe coming soon.  If all goes well with this trial, we’ll likely see trials in the United States soon thereafter.  For a company with a current market cap of approximately 17.1 million dollars, a potential blockbuster device will certainly give more than just moderate gains to those holding the precious shares of CTSO.

For an in-depth explanation of the cytosorbent filter technology, please refer to my previous article

Additionally, please read the following excerpt from the Eisai announcement of its now-failed phase III Eritoran trial to put things into perspective pertaining to the significance of an approved cytokine filter (an overabundance of cytokines produced to fight off infection is thought to induce sepsis).

“Each year, severe sepsis causes approximately 215,000 deaths in the United States - as many as heart attacks, and nearly as many as lung, colorectal and breast cancers combined -- with a mortality rate of approximately 30 percent (depending on the population studied). Worldwide, sepsis affects 18 million people every year. The incidence of severe sepsis in the European Union has been estimated at 90.4 cases per 100,000 population, with a mortality of 36 percent. The incidence of severe sepsis in Japan is estimated at more than 380,000 cases per year.

Stocks: ESALY