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.
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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.
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