CytoSorbents Corporation (OTCBB: CTSO), developer of a proprietary blood purification technology to modulate the immune system, recently announced its second quarter financial results and outlined its corporate developments. The company has been building substantial momentum as it works to commercialize its CytoSorb® technology in Europe.
Commercialization Underway
CytoSorbents has begun its commercialization phase after completing its controlled market release of CytoSorb® in Germany at the end of June. The company is now assembling a direct veteran sales force led by its new Vice President of Sales and Marketing, Dr. Christian Steiner, who is accompanied by three others that began working in the beginning of August.
Interest in CytoSorbent's technology also appears to be on the rise. CEO Dr. Phillip Chan stated in a press release that the market continues to be "very encouraging", with a growing number of sites interested in using CytoSorb®. Meanwhile, the company has even begun to see some unsolicited interest from physicians that have heard about their technology.
Moving forward, the company plans to exhibit at seven major conferences, giving them ample opportunity to increase market awareness for their technologies. Already, the firm has opened accounts in the neighboring DACH, or Germany speaking countries, of Switzerland and Austria, where CytoSorb® has been used to successfully treat septic patients.
Enhanced R&D with DARPA Deal
CytoSorbents was recently awarded a $3.8 million DARPA contract that will help them develop next generation blood purification technologies as a part of the agency's Dialysis-Like Therapeutics (DLT) program. According to the press release, the contract includes $1.5 million in funding designated for the first five years, based on the achievement of milestones.
In addition to the DARPA contract, the company completed the Phase I portion of the U.S. Army's SBIR grant program and submitted its Phase II SBIR grant application, worth up to $1 million in funding over one year. These grants represent an excellent source of non-dilutive capital that helps them to drive their research and development efforts.
Enhanced Investor Awareness
CytoSorbents has also made strides in increasing its investor awareness by attracting two new analysts. Zacks Research and Brean Murray initiated the company with a buy rating and $0.50 per share price target, which represents a significant 250%+ premium over the current market price of around $0.14 per share and very bullish sentiment on the part of the analysts.
According to CEO Phillip Chan, "We are pleased that analysts at both Zacks and Brean Murray are now following the developments of our company. Investors can visit our investor website at http://www.cytosorbents.com/invest.htm for instructions on how to obtain these reports. One of our major near term goals is to communicate the story to not only retail investors, but to institutional investors who have the ability to take a fundamental, long term approach."
About CytoSorbents
CytoSorbents Corporation (OTCBB: CTSO) is a critical care focused medical device company that has developed a blood purification technology that removes toxins from the body. Through a dialysis-like process, blood is filtered through a machine that removes dangerously high levels of cytokines in the body - a condition commonly referred to as a "cytokine storm".
The company's flagship product, called CytoSorb®, is a first-in-class cytokine filter that is broadly indicated for any clinical situation where cytokines are elevated. With the ability to fit in standard hemodialysis machines and blood pumps, the technology can be immediately deployed in most hospitals around the world with very little upfront investment.
With initial sales of $16,893 already realized for the first quarter of 2012, the company should also see interest building in its product throughout 2013 in Germany, culminating in several million dollars of revenue. By 2014, the company could see significant interest beyond Germany in other European countries where sales could grow to $10 million and beyond.
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