CytoSorbents Corp. (CTSO:NASDAQ) reported a lower than expected net loss for 2021, but core product sales should return to growth this year now that COVID-19 restrictions in the European Union have greatly eased, reported H.C. Wainwright & Co. analyst Sean Lee in a March 9 research note.
In fact, CytoSorbents' management expects sales of its CytoSorb product in 2022 to be 20% higher than in 2021, given sales reps now have unfettered access to hospitals and physicians, Lee noted.
The analyst added that H.C. Wainwright also predicts growth for the immunotherapy company this year. It estimates total 2022 revenue of $44.4 million ($44.4M), reflecting a 3% year-over-year increase in total revenue and a 23% increase in core product revenues.
Also in 2022, Lee pointed out, CytoSorbents' sales of CytoSorb for COVID-19 patients are expected to continue their downward trend. Q4/21 revenue from COVID-related sales in Q4/21 amounted to $1.76M, down from $2.6M a year earlier.
The forecasted decrease in COVID-related sales is ascribed to the further abatement of the pandemic, particularly the ongoing drops in the number of critically ill coronavirus patients needing ventilator support. The expected boost in CytoSorb sales overall, however, should make up for the continuing COVID-related shortfall.
Looking at the 2021 numbers, CytoSorbents' total full-year revenue came in at $43.2M, higher than consensus' forecasted $42.1M. This is attributed to the lifting of COVID restrictions happening quicker than anticipated in the company's direct sales regions, primarily Germany.
CytoSorbents' 2021 net loss was $0.57 per share, greater than the Street's $0.44 per share estimate. This, Lee noted, is due to the costs the company incurred while expanding its sales force.
With respect to catalysts for the biotech, Lee indicated, the most significant ones on track to happen in the next 12 to 18 months are data readouts from two clinical trials: STAR-T and STAR-D. Both studies will evaluate using DrugSorb-ATR to remove antithrombotic agents during urgent cardiothoracic surgery.
Enrollment for STAR-T, now underway, is expected to be finished in Q1/23. Earlier-stage STAR-D is in the recruitment phase.
"The U.S. remains the most lucrative medical device market in the world, and we believe success in these two studies could provide the fastest way for the company to secure regulatory approvals in the U.S., which could happen in H2/23," Lee wrote.
H.C. Wainwright has a Buy rating and a $13 per share price target on CytoSorbents, the current share price of which is around $3.75.
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
Disclosures and Disclaimers, H.C. Wainwright & Co. LLC, CytoSorbents Corp., March 9, 2022
This material is confidential and intended for use by Institutional Accounts as defined in FINRA Rule 4512(c). It may also be privileged or otherwise protected by work product immunity or other legal rules.
I, Sean Lee, Swayampakula Ramakanth, Ph.D. and Arthur He, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of CytoSorbents Corp (including, without limitation, any option, right, warrant, future, long or short position).
As of February 28, 2022 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of CytoSorbents Corp.
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did not receive compensation from CytoSorbents Corp for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in CytoSorbents Corp as of the date of this research report.
The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request.
H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report.
H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report.
H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report.
The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice.
Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.