CytoSorbents Reports Second Quarter 2024 Financial and Operational Results
Rhea-AI Summary
CytoSorbents (NASDAQ: CTSO) reported Q2 2024 financial results, highlighting:
- 10% increase in product sales to $8.8 million
- 48% reduction in operating loss to $3.4 million
- 75% product gross margins, up from 74% in Q2 2023
- Achieved milestone of over 250,000 CytoSorb treatments delivered to date
The company is on track for DrugSorb-ATR U.S. FDA De Novo and Health Canada marketing submissions this quarter. CytoSorbents secured a $20 million credit facility, strengthening its financial position. Cost-cutting measures, including a 17% headcount reduction, are expected to save $5 million annually. The company appointed Peter J. Mariani as new CFO, succeeding retiring Kathleen P. Bloch.
Positive
- 10% increase in Q2 2024 product sales to $8.8 million
- 48% reduction in Q2 2024 operating loss to $3.4 million
- Improved product gross margins to 75% in Q2 2024
- Achieved milestone of over 250,000 CytoSorb treatments delivered
- Secured $20 million credit facility with Avenue Capital Group
- On track for DrugSorb-ATR FDA De Novo and Health Canada submissions
- Launched PuriFi hemoperfusion pump in EU with first 30 machine orders placed
- Obtained regulatory approval of CytoSorb in Taiwan
Negative
- 17% reduction in headcount to 155 employees through attrition and layoffs
- Cash position decreased to $14.9 million as of June 30, 2024
- Loss on foreign currency transactions of $544,000 in Q2 2024
- 22% decrease in grant income to $1,053,000 in Q2 2024
News Market Reaction – CTSO
On the day this news was published, CTSO gained 7.99%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- New CFO Peter J. Mariani to succeed retiring CFO Kathleen P. Bloch
- On track for DrugSorb™-ATR U.S. FDA De Novo and Health Canada marketing submissions this quarter
- In Q2 2024, increased product sales by
10% and reduced operating loss by48% - Achieved more than a quarter million CytoSorb treatments cumulatively delivered to date – a major company milestone
PRINCETON, N.J., Aug. 13, 2024 (GLOBE NEWSWIRE) -- CytoSorbents Corporation (NASDAQ: CTSO), a pioneer in critical care and cardiac surgery blood purification technologies, today reported unaudited financial and operating results for the quarter ended June 30, 2024.
Second Quarter 2024 Financial Results
- Total revenue for Q2 2024, including product sales and grant income, was
$9.9 million , an increase of5% compared to$9.4 million in Q2 2023 - Q2 2024 product sales were
$8.8 million versus$8.1 million in Q2 2023, a10% increase - Product gross margins on devices and device accessories were approximately
75% in Q2 2024, compared to74% in Q2 2023 - Q2 2024 operating loss decreased
48% to$3.4 million from$6.6 million a year ago, reflecting prior cost cutting efforts and increased sales - Recently completed additional cutbacks, expected to save an additional
$5 million in annual expenses going forward. Through attrition and layoffs over the past 5 months, we have decreased our headcount by17% to 155 full-time and part-time employees - Total cash, including cash and cash equivalents, and restricted cash was
$14.9 million as of June 30, 2024
Recent Operating Highlights:
- Achieved more than a quarter million CytoSorb® treatments cumulatively delivered to date across more than 75 countries, helping to save many lives worldwide – a major company milestone
- Announced the retirement of Chief Financial Officer Kathleen P. Bloch effective today and the start of Peter J. Mariani as the new CFO tomorrow (see today’s separate press release)
- Secured a
$20 million credit facility with Avenue Capital Group, strengthening our financial position - Launched a new, redesigned, unified company and product website highlighting our long-standing collaboration with the scientific and clinical community in “Working to Save Lives Together”
- Data from the STAR (Safe and Timely Antithrombotic Removal) registry was presented at the international EuroPCR 2024 conference in Paris, France, where it was also selected as a top 5 finalist in the best scientific abstract competition
- Launched the PuriFi™ hemoperfusion pump in the European Union following its E.U. MDR certification in June, with the first orders of 30 machines already placed
- Completed our Medical Device Single Audit Program (MDSAP) site audit and are undergoing certification review – a key requisite to Canadian medical device commercialization
- Obtained regulatory approval of CytoSorb in Taiwan
- CytoSorbents’ #DidYouKnow social media campaign highlighting achievements in the world of medicine was a Gold Winner at the international 2024 dotCOMM Awards in July that celebrates excellence in web creativity and digital communications
Dr. Phillip Chan, Chief Executive Officer of CytoSorbents, stated, “This year, we have worked diligently to execute upon a broad turnaround strategy that is dependent on attaining a number of key objectives. I am pleased to highlight our achievement or expected achievement of many of these goals.”
1) Submission of marketing applications to U.S. FDA and Health Canada for DrugSorb™-ATR
We are rapidly nearing the expected completion and submission of our marketing applications to the U.S. Food and Drug Administration (FDA) and Health Canada for DrugSorb-ATR this quarter, based on the final results of our U.S. and Canadian pivotal STAR-T trial in patients on the blood thinner Brilinta® undergoing coronary artery bypass graft (CABG) surgery. We are leveraging the electronic Submission Template and Resource (eSTAR) platform used for electronic medical device submissions to FDA and have completed
2) Strengthen our balance sheet
After completing our
3) Cut costs to drive efficiency, improve product gross margins, and be self-sustaining
We continue to actively reduce operating expenses with a focus on improvements in productivity and the longer-term goal of being self-sustaining. Cost cutting measures taken in prior periods have helped to reduce our Q2 2024 operating loss by
Meanwhile, blended product gross margins that combine higher margin direct sales with lower margin distributor and partner sales improved year-over-year to
4) Increase core CytoSorb sales growth beyond the Quarter Million devices delivered to date
We have now achieved a major company milestone with more than a quarter million CytoSorb devices delivered across 76 countries to date, helping to save many lives worldwide. We thank everyone who has contributed to this achievement, most importantly our employees, our customers and supporters around the world, and our shareholders. This is our success.
Meanwhile, first half 2024 product sales were
- Our newly designed, modern, integrated corporate and product website is our public face to the world that now better reflects who we are as a company. An innovator. A collaborator. A global partner. A leader in acute care blood purification with more than 12 years of working together with the international medical and scientific communities to generate the knowledge of how best to use our therapies to help save lives
- Our launch of our MDR-certified, stand-alone hemoperfusion PuriFi® pump is going well, with our first opening order of 30 PuriFi pumps already placed at customers or distributors. We expect to take delivery of our second order of pumps from our OEM (Original Equipment Manufacturer) shortly
- We are actively working with Fresenius Medical Care (FMC) to co-market CytoSorb as the “featured solution for cytokine, bilirubin, and myoglobin removal” on their multiFiltrate® and multiFiltratePRO® machines at the upcoming Asia Pacific Intensive Care Symposium (APICS) in Singapore this week and the upcoming European Society of Intensive Care Medicine (ESICM) conference in Barcelona. There is excellent synergy between our companies. While FMC is “Shaping the future of multi-organ support” with its machines and disposables, CytoSorbents is leading the application front in organ support with CytoSorb and its ability to help reverse shock and stabilize the circulatory system, enable “Enhanced Lung Rest” in lung injury, “Expand the Dimension of Blood Purification®” to extracorporeal liver support, and protect kidney function in diseases like sepsis and rhabdomyolysis. In addition, outside of the FMC partnership, ECOS-300CY® is helping to rehabilitate and recondition sub-standard hearts, lungs, livers and kidneys for organ transplant during ex vivo organ perfusion
Dr. Chan concluded, “Finally, we have been positioning CytoSorbents for the next stage of growth, both our existing international franchise, as well as the potential to open the U.S. and Canadian markets. This is why it has taken us so long to find the right CFO candidate to replace our esteemed retiring CFO, Kathy Bloch. Kathy has gone above and beyond the call of duty, selflessly coming back from retirement last August to resume her former full-time CFO role, and in the intervening 12 months, helping to secure the future of the Company with two key financings and orchestrating our cash conservation strategy. With her retirement, announced today, she caps an outstanding CFO career and will continue as a consultant to help manage the smooth transition to our newly appointed CFO, Peter Mariani. On behalf of everyone at CytoSorbents, we thank Kathy for her more than 11 years of dedication and leadership at the Company as a trusted colleague and friend, with so many contributions that have helped us achieve the success we have today, and wish her an enjoyable, relaxing, and well-deserved retirement.
Meanwhile, Pete is a seasoned and accomplished medical device CFO whose many successes at high growth publicly-traded companies such as Axogen, Hansen Medical, and Guidant Corporation, speak for themselves. Importantly, at Axogen, an innovator in peripheral nerve repair, he helped to manage rapid U.S. growth with a direct sales force and high margin sales from
Q2 2024 Earnings Conference Call
The Company will conduct its second quarter 2024 results call today at 4:30 p.m. Eastern time.
Earnings Call Webcast Details:
Date: Tuesday, August 13, 2024
Time: 4:30 PM Eastern Time
Live Presentation Webcast:
https://edge.media-server.com/mmc/p/smuwcy9a
Conference ID: 7567925
Participant Dial-In:
Participant Dial-in toll-free: (888) 596-4144
Passcode: 7567925
It is recommended that participants dial in approximately 10 minutes prior to the start of the call.
An archived recording of the conference call will be available under the Investor Relations section of the Company’s website at https://ir.cytosorbents.com/
Results of Operations
Comparison for the three months ended June 30, 2024 and 2023:
Revenues:
Revenue from product sales was approximately
Grant income was approximately
Total revenues were approximately
Cost of Revenues:
For the three months ended June 30, 2024 and 2023, cost of revenue was approximately
Research and Development Expenses:
For the three months ended June 30, 2024, research and development expenses were approximately
Legal, Financial and Other Consulting Expenses:
Legal, financial, and other consulting expenses were approximately
Selling, General and Administrative Expenses:
Selling, general and administrative expenses were approximately
Gain (Loss) on Foreign Currency Transactions:
For the three months ended June 30, 2024, the loss on foreign currency transactions was approximately
Comparison for the six months ended June 30, 2024 and 2023:
Revenues:
Revenue from product sales was approximately
Grant income was approximately
Total revenues were approximately
Cost of Revenues:
For the six months ended June 30, 2024 and 2023, cost of revenue was approximately
Research and Development Expenses:
For the six months ended June 30, 2024, research and development expenses were approximately
Legal, Financial and Other Consulting Expenses:
Legal, financial, and other consulting expenses were approximately
Selling, General and Administrative Expenses:
Selling, general and administrative expenses were approximately
Gain (Loss) on Foreign Currency Transactions:
For the six months ended June 30, 2024, the loss on foreign currency transactions was approximately
Liquidity and Capital Resources
Since inception, our operations have been primarily financed through the issuance of debt and equity securities. As of June 30, 2024, we had current assets of approximately
In June 2024, we closed on a
In March of 2024, we received approximately
We are also managing our resources proactively, continuing to invest in key areas such as our planned regulatory submission of DrugSorb-ATR to U.S. FDA and Health Canada. We have also instituted and continue to maintain tight control over expenditures.
As of June 30, 2024 we have approximately
About CytoSorbents Corporation (NASDAQ: CTSO)
CytoSorbents Corporation is a leader in the treatment of life-threatening conditions in the intensive care unit and in cardiac surgery through blood purification. Its lead product, CytoSorb®, is approved in the European Union and distributed in 76 countries worldwide. It is an extracorporeal cytokine adsorber that reduces “cytokine storm” or “cytokine release syndrome” in common critical illnesses that can lead to massive inflammation, organ failure and patient death. In these diseases, the risk of death can be extremely high, and there are few, if any, effective treatments. CytoSorb is also used during and after cardiothoracic surgery to remove antithrombotic drugs and inflammatory mediators that can lead to postoperative complications, including severe bleeding and multiple organ failure. As of June 30, 2024, more than 248,000 CytoSorb devices have been used cumulatively. CytoSorb was originally launched in the European Union under CE mark as the first cytokine adsorber. Additional CE mark extensions were granted for bilirubin and myoglobin removal in clinical conditions such as liver disease and trauma, respectively, and for ticagrelor and rivaroxaban removal in cardiothoracic surgery procedures. CytoSorb has also received FDA Emergency Use Authorization in the United States for use in adult critically ill COVID-19 patients with impending or confirmed respiratory failure. CytoSorb is not yet approved in the United States.
The DrugSorb™-ATR antithrombotic removal system, an investigational device based on the same polymer technology as CytoSorb, has received two FDA Breakthrough Device Designations, one for the removal of ticagrelor and another for the removal of the direct oral anticoagulants (DOAC) apixaban and rivaroxaban in a cardiopulmonary bypass circuit during urgent cardiothoracic procedures. The Company has completed the FDA-approved, randomized, controlled STAR-T (Safe and Timely Antithrombotic Removal-Ticagrelor) study of 140 patients at approximately 30 centers in U.S. and Canada to evaluate whether intraoperative use of DrugSorb-ATR can reduce the perioperative risk of bleeding in patients receiving ticagrelor and undergoing cardiothoracic surgery. This pivotal study is intended to support U.S. FDA and Health Canada marketing approval for DrugSorb-ATR in this application.
CytoSorbents’ purification technologies are based on biocompatible, highly porous polymer beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface adsorption. Its technologies have received non-dilutive grant, contract, and other funding of approximately
Forward-Looking Statements
This press release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, future targets and outlooks for our business, representations and contentions, and the timing of our expected regulatory submissions, and are not historical facts and typically are identified by use of terms such as “may,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements in this press release represent management’s current judgment and expectations, but our actual results, events and performance could differ materially from those in the forward-looking statements. Factors which could cause or contribute to such differences include, but are not limited to, the risks discussed in our Annual Report on Form 10-K, filed with the SEC on March 14, 2024, as updated by the risks reported in our Quarterly Reports on Form 10-Q, and in the press releases and other communications to shareholders issued by us from time to time which attempt to advise interested parties of the risks and factors which may affect our business. We caution you not to place undue reliance upon any such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, other than as required under the Federal securities laws.
| CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share data) | |||||||||||||||||
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
| Revenue: | |||||||||||||||||
| CytoSorb sales | $ | 8,831 | $ | 8,066 | $ | 17,795 | $ | 15,972 | |||||||||
| Other sales | 11 | 6 | 36 | 10 | |||||||||||||
| Total product sales | 8,842 | 8,072 | 17,831 | 15,982 | |||||||||||||
| Grant income | 1,053 | 1,349 | 1,850 | 2,888 | |||||||||||||
| Total revenue | 9,895 | 9,421 | 19,681 | 18,870 | |||||||||||||
| Cost of revenue | 3,392 | 3,402 | 6,608 | 7,396 | |||||||||||||
| Gross profit | 6,503 | 6,019 | 13,073 | 11,474 | |||||||||||||
| Other Expenses: | |||||||||||||||||
| Research and development | 1,520 | 3,669 | 3,768 | 7,883 | |||||||||||||
| Legal, financial and other consulting | 821 | 1,185 | 1,501 | 1,854 | |||||||||||||
| Selling, general and administrative | 7,581 | 7,724 | 16,148 | 16,188 | |||||||||||||
| Total expenses | 9,922 | 12,578 | 21,417 | 25,925 | |||||||||||||
| Loss from operations | (3,419 | ) | (6,559 | ) | (8,344 | ) | (14,451 | ) | |||||||||
| Other income/(expense): | |||||||||||||||||
| Interest income (expense), net | (180 | ) | (9 | ) | (187 | ) | (72 | ) | |||||||||
| Gain (loss) on foreign currency transactions | (544 | ) | 415 | (1,970 | ) | 1,076 | |||||||||||
| Miscellaneous Income (Expense) | -- | -- | -- | (32 | ) | ||||||||||||
| Total other income (expense), net | (724 | ) | 406 | (2,157 | ) | 972 | |||||||||||
| Loss before benefit from income taxes | (4,143 | ) | (6,153 | ) | (10,501 | ) | (13,479 | ) | |||||||||
| Benefit from income taxes | -- | -- | -- | -- | |||||||||||||
| Net loss | $ | (4,143 | ) | $ | (6,153 | ) | $ | (10,501 | ) | $ | (13,479 | ) | |||||
| Basic and diluted net loss per common share | $ | (0.08 | ) | $ | (0.14 | ) | $ | (0.19 | ) | $ | (0.31 | ) | |||||
| Weighted average number of shares of common stock outstanding | 54,306,041 | 44,015,380 | 54,284,416 | 43,758,888 | |||||||||||||
| Net loss | $ | (4,143 | ) | $ | (6,153 | ) | $ | (10,501 | ) | $ | (13,479 | ) | |||||
| Other comprehensive income (loss): | |||||||||||||||||
| Currency translation adjustment | 421 | (393 | ) | 1,644 | (1,001 | ) | |||||||||||
| Comprehensive loss | $ | (3,722 | ) | $ | (6,546 | ) | $ | (8,857 | ) | $ | (14,480 | ) | |||||
| CYTOSORBENTS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) | ||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||
| ASSETS: | ||||||||||
| Current Assets: | ||||||||||
| Cash and cash equivalents | $ | 8,458 | $ | 14,131 | ||||||
| Grants and accounts receivable, net | 7,823 | 6,057 | ||||||||
| Inventories | 4,317 | 3,680 | ||||||||
| Prepaid expenses and other current assets | 1,357 | 1,835 | ||||||||
| Total current assets | 21,955 | 25,703 | ||||||||
| Property and equipment, net | 9,424 | 10,056 | ||||||||
| Restricted Cash | 6,484 | 1,484 | ||||||||
| Right of use asset | 11,790 | 12,059 | ||||||||
| Other assets | 3,774 | 3,959 | ||||||||
| TOTAL ASSETS | $ | 53,427 | $ | 53,261 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||||||
| Current Liabilities: | ||||||||||
| Accounts payable | $ | 3,047 | $ | 3,802 | ||||||
| Lease liability - current portion | 412 | 374 | ||||||||
| Accrued expenses and other current liabilities | 6,877 | 7,870 | ||||||||
| Current maturities of long-term debt | --- | 2,500 | ||||||||
| Total current liabilities | 10,336 | 14,546 | ||||||||
| Lease liability, net of current portion | 12,681 | 12,897 | ||||||||
| Long-term debt | 13,673 | 2,543 | ||||||||
| TOTAL LIABILITIES | 36,690 | 29,986 | ||||||||
| Total stockholders’ equity | 16,737 | 23,275 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 53,427 | $ | 53,261 | ||||||
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U.S. Company Contact:
Dr. Phillip Chan, CEO
305 College Road East
Princeton, NJ 08540
pchan@cytosorbents.com
Investor Relations Contact:
Eric Ribner
LifeSci Advisors, LLC
250 W 55th St, #3401
New York, NY 10019
ir@cytosorbents.com
FAQ
What were CytoSorbents' (CTSO) Q2 2024 product sales?
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