MONMOUTH JUNCTION, N.J.,
March 31, 2015 /PRNewswire/ --
CytoSorbents Corporation (NASDAQ CM: CTSO), a critical care
immunotherapy company using blood purification to treat
critically-ill and cardiac surgery patients in multiple countries
worldwide, provides an operational summary and reports financial
results for the fiscal year ending December
31, 2014.
2014 CytoSorb® product revenues were a record $3.1M, an increase of $2.3M or 281%, compared to 2013 CytoSorb®
revenues of $0.8M
Highlights for the Year Ending December 31, 2014:
- Total revenue for 2014 was $4.1
million, which includes both product sales and grant income,
compared to total revenue of $2.4
million for 2013
- Product gross margins were 63% in 2014, as compared to 61% in
2013
- Product revenues for the fourth quarter of 2014 were
approximately $871,000, an increase
of 177% over the fourth quarter of 2013 product revenues of
approximately $314,000
- Up-listed to the NASDAQ Capital Market in December 2014, providing an ideal platform from
which to broadly communicate our exciting story to potential
investors
- Ranked #11 amongst Forbes' Best-Performing Biotech Stocks of
2014 with a total return of 218.4%
- Entered into a potentially important multi-country strategic
partnership with Fresenius Medical Care, the world's largest
dialysis company, to commercialize our CytoSorb® therapy for
critical care applications in France, Poland, Sweden, Denmark, Norway, and Finland
- Announced the expansion of our strategic partnership with
Biocon Ltd, Asia's largest
biotechnology company, as the exclusive distributor of CytoSorb®
for all critical care and cardiac surgery applications in
India and emerging countries, with
a commitment to increased minimum purchases of CytoSorb® and
to conduct and publish results from multiple small-scale clinical
studies
- Announced a potentially important initial partnership agreement
with one of the top four global medical device companies in cardiac
surgery to use CytoSorb® intra-operatively during cardiac surgery
in France
- Significantly expanded our geographic footprint of CytoSorb® to
29 countries worldwide via a combination of direct sales,
independent distributors, and strategic partnerships
- Launched the International CytoSorb® Registry, which is being
administered by the University of Jena, Germany to provide a central repository for
all investigator-initiated studies and clinical treatments with
CytoSorb®
- Established a world-class Cardiac Surgery Scientific Advisory
Board
- Appointed Dr. Gregory Di Russo,
MD, FACS, an accomplished pediatric cardiothoracic surgeon with
strong clinical development experience from CSL Behring and
Bristol-Myers Squibb, as Senior Vice President of Clinical
Development
- Submitted an Investigational Device Exemption (IDE) application
to the U.S. Food and Drug Administration (FDA) in December 2014, and in February 2015 received approval to conduct a
feasibility study using CytoSorb® intra-operatively in a heart-lung
machine in patients undergoing complex cardiac surgery
- Received the GREAT Tech Award from Prince William, Duke
of Cambridge, also sponsored by the United Kingdom Trade
& Investment and the British Consulate General New York,
the Beacon of Light Award by the New Jersey Technology
Council, and the Export Achievement Award from the U.S. Department
of Commerce and the International Trade Administration
- Strengthened the balance sheet through the raise of a total of
$20.5M in two common stock financings
in March 2014 and January 2015
- More than 50 investigator-initiated and company-sponsored
studies being planned, with approximately 12 actively enrolling
patients, with a number of these expected to be completed in
2015. In addition, there has been a steady flow of published
case report studies in peer-reviewed clinical journals
Dr. Phillip Chan, Chief Executive
Officer of CytoSorbents, stated, "2014 was a fantastic year for the
company, highlighted by the many key accomplishments above.
We exceeded our internal forecasts for CytoSorb® sales growth,
fueled by strengthening physician interest and usage across many
different clinical applications in multiple countries
worldwide. We established or strengthened key strategic
partnerships with Fresenius Medical Care, Biocon, and one of the
top global cardiac surgery companies, potentially paving the way
for more rapid future growth. And while we pursue international
commercialization, we also began the clinical trial process to
eventually seek U.S. FDA approval for CytoSorb® for the application
of cardiac surgery. Last, but not least, with the cooperation
of our shareholders, we also smoothly navigated our up-listing to
the NASDAQ Capital Market, giving the company much broader
visibility in the investment community, and we believe
significantly increasing liquidity for all shareholders."
"We believe we are poised for a solid 2015, building upon strong
continued international physician interest and clinical successes
with our CytoSorb® therapy," Dr. Chan commented. "With the
raise of more than $20 million in the
past 12 months and a strengthened balance sheet, we are investing
significantly in new studies in sepsis and cardiac surgery that,
along with data from our investigator-initiated studies, should
help to support and accelerate ongoing demand. In addition,
we believe there are many potential catalysts for growth, including
when key opportunities such as Fresenius, the Middle East, Russia and France, come online and also the development
of potential major new applications."
Dr. Chan continued, "But our rapid growth has certainly not been
without growing pains. As we will discuss in greater detail
on our conference call today, in an effort to create an outstanding
core sales team, we have been in the process of restructuring our
direct sales force. We felt it necessary to replace a number
of existing sales representatives with others who were better
equipped to sell our therapy, and to better support international
sales. This has created a significant gap in sales coverage in our
direct sales territories, and has resulted in lower direct
sales. Although painful, we believe these changes are
necessary and will have a positive benefit in the second half of
2015. However, in the near term, taking into account this
transition and adjusting for the recent and continued drop in the
Euro against the dollar in the first quarter (versus a year ago),
Q1 2015 sales are expected to show approximately 45% year-over-year
growth, and be slightly lower than Q4 2014. We expect
restructuring of the sales force to be completed within the
upcoming months. In the meantime, investors should expect
that near-term growth will be driven predominantly by distributor
and strategic partner sales. We expect to add several more
international distributors in Q2 2014, and expect to see Fresenius
begin selling in Q2 2015 and existing distributor relationships to
come on-line as well. We believe that growth in direct sales
will resume in the second half of 2015."
"Please join us on our previously announced earnings call today
at 4:15PM EST where we will cover our
progress in greater detail. The investor presentation and a
written transcript of the conference call will be available within
a week of the webcast."
Conference Call Details:
Date: Tuesday, March 31, 2015
Time: 4:15 PM Eastern
Participant Dial-In: 719-325-4809
Live Presentation Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1059271
An archived recording of the conference call will be available
under the Investor Relations section of the Company's website at
http://www.cytosorbents.com/invest.htm
Fiscal Year 2014 Financial Results
For the year ended December 31,
2014, the Company generated total revenue, including product
revenue and grant income, of approximately $4,123,000 as compared to revenues of
approximately $2,423,000, for the
year ended December 21, 2013, an
increase of approximately 70%.
Revenue from product sales was approximately $3,136,000 for the year ended December 31, 2014, as compared to approximately
$822,000 for the year ended
December 31, 2013, an increase
approximately $2,314,000 or
281%. This increase was largely driven by efforts of our
direct sales force and the continued expansion of our distributor
network.
Product gross margins were approximately 63% for the year ended
December 31, 2014, as compared to 61%
for the year ended December 31,
2013.
Grant income decreased from approximately $1,601,000 in 2013 to approximately $978,000 in 2014 as a result of the completion or
near completion of several significant grants.
Our net loss from operations for the year ended December 31, 2014 was approximately $7,279,000, as compared to a net loss from
operations of approximately $4,713,000 for the year ended December 31, 2013. The increase in net loss
from operations was due to the following:
- An increase in research and development expenses resulting from
lower grant funding, which has the effect of increasing the amount
of the Company's non-reimbursable research and development
costs
- An increase in legal, financial and consulting expenses as a
result of fees and expenses related to our various corporate
actions during 2014 which culminated in our up-listing to the
NASDAQ Capital Market
- An increase in selling, general and administrative expenses due
to headcount additions during the year as we continue to build our
infrastructure, increased royalty expense due to increased sales,
and a large increase in foreign currency exchange losses due to the
decrease in the exchange rate of the Euro relative to the U.S.
dollar.
These items were partially offset by an increase in gross profit
of approximately $1,478,000 as a
result of higher sales.
On December 31, 2014 our cash and
short-term investments were approximately $5,550,000, as compared to approximately
$2,183,000 as of December 31, 2013. Cash used by operating
activities was approximately $6,661,000 for the year ended December 31, 2014 as compared to $3,489,000 for the year ended December 31, 2013.
On January 14, 2015, the Company
closed on a public equity offering (the "Offering") consisting of
1,250,000 shares of common stock at a price of $8.25 per share for an aggregate price of
$10,312,500. The Company
received net proceeds from the Offering of approximately
$9,609,000 million. The net proceeds
received by the Company from the Offering will be used to fund
clinical studies, expansion of production capacity, support various
sales and marketing efforts, product development and general
working capital purposes.
For additional information please see the Company's Annual
Report on Form 10-K for the year ended December 31, 2014 filed on March 31, 2015 on http://www.sec.gov.
2015 First Quarter Revenue Guidance
CytoSorbents expects to report that 2015 first quarter CytoSorb®
product revenue will be in the range of $700,000 to $725,000 (unaudited). Adjusting
for the impact of the change in the Euro relative to the dollar
from Q1 2014, this is equivalent to an adjusted range of
$800,000 to $850,000.
About CytoSorbents
CytoSorbents Corporation is a critical care focused
immunotherapy company using blood purification to control severe
inflammation -- with the goal of preventing or treating multiple
organ failure in life-threatening illnesses. Organ failure is the
cause of nearly half of all deaths in the intensive care unit, with
little to improve clinical outcome. CytoSorb®, the Company's
flagship product, is approved in the European Union with
distribution in 29 countries around the world, as a safe and
effective extracorporeal cytokine filter, designed to reduce the
"cytokine storm" that could otherwise cause massive inflammation,
organ failure and death in common critical illnesses such as
sepsis, burn injury, trauma, lung injury, and pancreatitis. These
are conditions where the risk of death is extremely high, yet no
effective treatments exist. CytoSorb® is also being used during and
after cardiac surgery to remove inflammatory mediators, such as
cytokines and free hemoglobin, which can lead to post-operative
complications, including multiple organ failure.
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. CytoSorbents has numerous products under
development based upon this unique blood purification technology,
protected by 32 issued US patents and multiple applications
pending, including HemoDefend™, ContrastSorb, DrugSorb, and others.
Additional information is available for download on the Company's
website: http://www.cytosorbents.com and at www.cytosorb.com
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, representations and
contentions 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 31, 2015, 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 STATEMENT OF OPERATIONS
|
(amounts in
thousands, except per share data)
|
|
|
|
Year Ended December
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
Revenues
|
|
|
|
Sales
|
$ 3,136
|
|
$ 822
|
Grant
income
|
978
|
|
1,601
|
Other
income
|
9
|
|
--
|
Total
revenue
|
4,123
|
|
2,423
|
|
|
|
|
Cost of
revenue
|
2,134
|
|
1,912
|
|
|
|
|
Gross
profit
|
1,989
|
|
511
|
|
|
|
|
Expenses:
|
|
|
|
Research and
development
|
2,432
|
|
1,739
|
Legal, financial and other
consulting
|
1,285
|
|
908
|
Selling, general and
administrative
|
5,551
|
|
2,577
|
Total operating costs and
expenses
|
9,268
|
|
5,224
|
|
|
|
|
Operating
loss
|
(7,279)
|
|
(4,713)
|
|
|
|
|
Other expenses,
net
|
2,428
|
|
423
|
|
|
|
|
Net loss before
benefit from income taxes
|
(9,707)
|
|
(5,136)
|
|
|
|
|
Benefit from income
taxes
|
386
|
|
458
|
|
|
|
|
Net
loss
|
(9,321)
|
|
(4,678)
|
|
|
|
|
Preferred stock
dividend
|
9,267
|
|
2,395
|
|
|
|
|
Net loss available to
common stockholders
|
$ (18,588)
|
|
$ (7,073)
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic and diluted earnings
per share
|
$ (1.29)
|
|
$ (0.75)
|
|
|
|
|
Basic and diluted
weighted
average shares
outstanding
|
14,382,813
|
|
9,440,763
|
CYTOSORBENTS
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(amounts in
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
|
|
|
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$ 3,605
|
|
$ 2,183
|
Short-term
investments
|
1,945
|
|
---
|
Grant and accounts
receivable, net
|
819
|
|
453
|
Inventories
|
538
|
|
246
|
Prepaid expenses and
other current assets
|
700
|
|
605
|
Total current
assets
|
7,607
|
|
3,487
|
|
|
|
|
Property and
equipment,
net
|
246
|
|
145
|
Other
assets
|
616
|
|
414
|
TOTAL
ASSETS
|
$ 8,469
|
|
$ 4,046
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY:
|
|
|
|
Accounts
payable
|
$ 698
|
|
$ 787
|
Accrued expenses and
other current liabilities
|
825
|
|
362
|
Deferred
revenue
|
1
|
|
272
|
Warrant
liability
|
2,982
|
|
---
|
Convertible notes
payable, net
|
---
|
|
1,644
|
Total current
liabilities
|
4,506
|
|
3,065
|
|
|
|
|
Redeemable Series B
Convertible Preferred Stock
|
---
|
|
15,246
|
|
|
|
|
Total stockholders'
equity
|
3,963
|
|
(14,265)
|
TOTAL LIABILITIES AND
EQUITY
|
$ 8,469
|
|
$ 4,046
|
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SOURCE CytoSorbents Corporation