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Q2/10 and FY10 Results to Date, Cytori Therapeutics (CYTX)

CYTX’s net loss was $5.4 M and $0.12 per share with product revenues of $2.1 M and total operating expenses were $6.3M with gross margins of 58% and a gross profit of $1.2M.  Product revenues and gross profit grew 64%.  The decline in total operating expenses (compared to the same periods a year ago)  are primarily due to a net reduction in non-cash expenses for changes in fair value of the warrant and option liabilities  CYTX experienced a decrease in R&D expenses, partially offset by a greater investment into sales and marketing efforts as well as increased corporate costs. Q2/10 net cash used in operating activities was $4.5 M. Cash and cash equivalents as of 6/30/10 were $38.1M and ended the Q with $2.6M in net accounts receivable.

Year-to-date, CYTX has executed on the following stated business goals and objectives:

  • Grew system installed-base in Europe, Asia and US, bringing cumulative revenue-generating units worldwide to 122;
  • Achieved highest level of quarterly consumable shipments to date at 392, including 304 consumable re-orders in Q2;
  • Expanded European Celution(NYSE:R) regulatory approval includes multiple medical indications and improves sales opportunities to hospitals;
  • Received regulatory approval for and launched PureGraft(NYSE:TM) into the US and European plastic and reconstructive surgery markets; and
  • Reported positive results in 2 cardiac cell therapy trials; plans underway to begin a European approval trial for heart attack patients.

Bottom Line: CYTX continues to expand the number of Celution(R) and StemSource(R) products in the field while simultaneously investing to grow system adoption and consumable usage. Expanding the approved Celution(R) indications-for-use in EU, which include new medical applications such as breast reconstruction and the repair of wounds, such as those resulting from Crohn’s disease, positively impacts their ability to sell systems to hospitals. This immediately expands the market opportunity as sales efforts to date have been focused primarily on cosmetic surgery clinics. CYTX anticipates that 12 month results from the RESTORE 2 breast reconstruction trial will support efforts to gain reimbursement for breast reconstruction in the EU. In addition, PureGraft(TM) approval in the US and EU now expands the product portfolio to more comprehensively address the autologous fat grafting market.

When combined, the importance of the expanded claims and PureGraft(TM) approvals support the CYTX’s transformation from a primarily R&D organization to a multi-product, multi-market, sales driven organization.