Cytosorbents Corporation · NASDAQ:CTSO
Cytosorbents — Q1 2022 Earnings Presentation
43 slides from Cytosorbents's earnings presentation, May 3, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
CytoSorbents Corporation First Quarter 2022 Earnings Conference Call May 3, 2022
Slide 2: Conference Call Participants
Conference Call Participants Moderator: Terri Anne Powers CytoSorbents Corporation Phillip Chan, MD, PhD – Chief Executive Officer Vincent Capponi, MS – President and Chief Operating Officer Kathleen Bloch, MBA, CPA – Chief Financial Officer Efthymios “Makis” Deliargyris, MD, FACC, FESC, FSCAI – Chi
Slide 3: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation regarding CytoSorbents Corporation and its operating subsidiaries CytoSorbents Medical, Inc and CytoSorbents Europe GmbH that are not historical facts are forward- looking statements and are subject to risks and uncertainties that could cause act
Slide 4: Operational Update
Operational Update Phillip Chan, MD, PhD Chief Executive Officer
Slide 5: Q1 2022 Operational Highlights
Q1 2022 Operational Highlights • >170,000 cumulative CytoSorb devices utilized as of 3/31/22, up 30% year over year • U.S. clinical trials in antithrombotic removal continue to progress, with first patient enrolled in STAR-D in April 2022 and STAR-T progressing towards 1st DSMB meeting, anticipated
Slide 6: Stable Core Product Sales in Q1 2022
Stable Core Product Sales in Q1 2022 • Total revenue (product sales and grant income) for Q1 2022 was $8.7M vs $10.6M in Q1 2021 • Product sales were: $7.9M ($7.6M core, $0.3M COVID-19 sales) vs $10.1M ($8.3M core + $1.8M COVID-19 sales) in Q1 2021. Product gross margins of 80% • Q1 2022 core sales
Slide 7: Germany COVID-19 Status (5/3/22)
Germany COVID-19 Status (5/3/22) • Germany experienced the Q1 2022 highest COVID rates since the pandemic began in Q1 2022, worsened by a new Germany BA.2 variant surge following our last earnings call, that has delayed the recovery in Germany, and our sales • Q1 2022 Germany sales were $3.8M vs $5.
Slide 8: Worldwide COVID-19 and Vaccination Status
Worldwide COVID-19 and Vaccination Status Early March 2022 Early May 2022 • There are still hot spots of infection, particularly in Europe, and increasing infections in certain parts of the U.S. Fully Partially COVID • 67% of the world population has now had at least 1 vaccine Country Vaccinated Vac
Slide 9: Revision of Prior 2022 Outlook
Revision of Prior 2022 Outlook • The macro environment in which we operate is complex, difficult to predict, and not in our direct control with COVID having the most direct impact on our business • COVID, Russia-Ukraine War, inflation, currency exchange volatility and other factors • We believe a su
Slide 10: Laser-Focused on 2022 Strategic Objectives
Laser-Focused on 2022 Strategic Objectives We are well-capitalized with $44.7M in cash to weather this turbulence and uncertainty, and will continue investing selectively on priority programs, while taking proactive measures to significantly reduce our cash burn to end 2022 with more than $30M in ca
Slide 11: Examples of Near-Term Growth Initiatives
Examples of Near-Term Growth Initiatives • Resume in-person sales from a strong customer base: • New therapeutic area divisions: United States International DrugSorb™- ATR CytoSorb® (development) (already commercialized) Cardiac Surgery Critical Care Cardiac Surgery Liver/Kidney • Antithrombotic • S
Slide 12: Examples of Longer-Term Growth Initiatives
Examples of Longer-Term Growth Initiatives • Stand-alone blood pump business model • Expansion of direct sales territories • Investment in important clinical studies in multiple clinical areas 12
Slide 13: Facility Update
Facility Update Vincent Capponi, MS President and Chief Operating Officer
Slide 14: Facility Expansion on Track
Facility Expansion on Track • Outgrown existing Monmouth Junction facility- new facility brings several advantages: • Optimized process flow • Additional space for growth in personnel or new product/production lines • Larger site supports existing business scale and future growth • Old facility leas
Slide 15: Exterior View of New Princeton HQ
Exterior View of New Princeton HQ 15
Slide 16: New Facility - First Look
New Facility - First Look WORKING TO SAVE LIVES
Slide 17: New Facility - First Look
New Facility - First Look CytoSorbents. 17
Slide 18: New Facility - First Look
New Facility - First Look CytoSorbents. 18
Slide 19: Financial Highlights
Financial Highlights Kathleen Bloch, MBA, CPA Chief Financial Officer
Slide 20: Comparative Quarterly Revenue Results
Comparative Quarterly Revenue Results Quarter Ended Quarter Ended Mar 31, 2022 Mar 31, 2021 % Incr. Product revenue $7,924,457 $10,143,356 (21.9)% Grant and other income 766,967 455,491 68.4% Total revenue $8,691,424 $10,598,847 (18.0%) • Total revenue, including product sales and grant income was $
Slide 21: First Quarter Product Sales Over Time
First Quarter Product Sales Over Time Product Sales $10.1 $10.0 $8.1 $7.9 $8.0 $ in Millions $6.0 $4.4 $4.6 $4.0 $2.6 $2.0 $- Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 • COVID-19 accelerated sales growth in 2020 and 2021. • Lower sales in Q1 2022 due to a decline in severely ill COVID-19 patie
Slide 22: Total Quarterly Product Sales
Total Quarterly Product Sales Product Sales $12.0 Core Non-COVID-19 Product Sales COVID-19 Sales $2.5 $11.0 $1.7 $10.0 $2.7 $1.8 $9.7 $2.4 $1.7 $9.0 $9.0 $1.1 $7.6 $0.3 $8.0 $8.3 $ IN MILLONS $1.6 $8.0 $7.8 $7.5 $7.0 $7.1 $6.6 $6.5 $6.0 $5.9 $5.7 $5.5 $5.0 $5.2 $5.1 $4.6 $4.4 $4.0 $3.0 $2.0 Q1 2018
Slide 23: TTM Product Sales & Blended Gross Margin
TTM Product Sales & Blended Gross Margin $45.0 $41.4 85% $40.0 $37.9 $35.0 80% $30.0 $26.3 75% $25.0 $20.4 $20.0 $15.2 70% $15.0 $9.2 $10.0 65% $4.9 $5.0 $0.0 60% Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 CytoSorb Sales Blended Product Gross Margin 23
Slide 24: Working Capital and Cap Table
Working Capital and Cap Table Working Capital as of 3/31/2022 12/31/2021 9/30/2021 6/30/2021 3/31/2021 Current Assets: Cash and short-term investments $43,023 $52,138 $61,043 $65,609 $68,468 Grants and accounts receivable, net 4,577 4,523 5,241 5,755 5,019 Inventories 5,445 4,766 4,528 3,689 3,108 P
Slide 25: Focus on Financial Discipline and Flexibility
Focus on Financial Discipline and Flexibility • We have taken actions to reduce planned quarterly cash spend by approximately $2 million per quarter for the remainder of 2022, including: • Company-wide hiring freeze, excluding essential hires • Postponement of office space buildout • Reductions in n
Slide 26: Commercialization Update
Commercialization Update Christian Steiner, MD Executive Vice President of Sales and Marketing Managing Director – CytoSorbents Europe GmbH
Slide 27: Customer Base Stable in current environment
Customer Base Stable in current environment Active customers in CTSO Direct Business (Depts.) • Number of active customers/users has grown by 20-25% compared to pre-pandemic times and stabilized • Customer loyalty has increased • Amount of purchased adsorbers per department has fluctuated more than
Slide 28: Exclusive/Preferred Supplier Contracts in Germany
Exclusive /Preferred Supplier Contracts in Germany 120 108 100 • Customer loyalty and satisfaction has led to a significant increase of exclusive or preferred supplier 80 contracts of CytoSorbents 62 60 • The 20% biggest customers are contributing 80% of the revenues in 40 Germany 30 31 • Contracts
Slide 29: New Preferred Supplier Agreement with Asklepios
New Preferred Supplier Agreement with Asklepios • New 3-year preferred supplier agreement signed in 1Q22 • Asklepios is among the leading private hospitals operators in Germany (facilities across 14 states, including 70 acute care clinics) • CytoSorbents now has preferred supplier agreements with th
Slide 30: Therapeutic area – Cardiovascular
Therapeutic area – Cardiovascular 90 CytoSorb in Cardiac Surgery Centers 80 in Germany 70 • TA team led by a experienced 60 marketing executive and a cardiac 50 40 surgeon 30 20 10 • Establishing and extending robust 0 KOL network • German Heart Center roadshow started; International planned Centers
Slide 31: Near term growth drivers after pandemic
Near term growth drivers after pandemic Focus on key initiatives • Resume growth from high active customer base • New exclusive/preferred supplier partnerships • Focus on major applications in key therapeutic areas (critical care, cardiac surgery, and liver/kidney) • Expansion of direct sales footpr
Slide 32: New Growth Opportunity
New Growth Opportunity Chris Cramer, MBA Vice President, Business Development
Slide 33: New Growth Opportunity to Drive CytoSorb Adoption
New Growth Opportunity to Drive CytoSorb Adoption We believe there is a global opportunity to drive further adoption of CytoSorb by improving machine access for customers • Physicians want the ability to start CytoSorb treatment prior to initiation of CRRT • Access to CytoSorb therapy can be challen
Slide 34: Pilot Hemoperfusion Program Launched
Pilot Hemoperfusion Program Launched • CTSO has executed an agreement with a large, multi-national extracorporeal machine provider to supply CTSO with hemoperfusion machines and accessories • Multi-country reseller agreement in place • CTSO has the ability to provide HP machines, tubing sets and fie
Slide 35: Clinical Update
Clinical Update Efthymios N. Deliargyris, MD, FACC, FESC, FSCAI Chief Medical Officer
Slide 36: Execution and Focus
Execution and Focus • Global clinical plan on track with all studies now active • 7 Programs (3 RCT, 3 Registries, 1 Pilot study) • US (3): 2 FDA RCT: STAR-T; STAR-D + CTC Registry (EUA) • EU (4): RCT (PROCYSS); Pilot (HepOnFire); Registries (STAR + COSMOS) • STAR FDA programs remain top priority an
Slide 37: FDA Programs (STAR-T & STAR-D)
FDA Programs (STAR-T & STAR-D) • Both studies have now left the station and are actively enrolling • Very high levels of enthusiasm from U.S. centers - Expanding studies to 30 sites • Majority of STAR-T sites active and recruiting - >3/4 of them also in STAR-D • Dedicating maximum resources to ensur
Slide 38: Antithrombotic Removal – Validation of a Large Opportunity
Antithrombotic Removal – Validation of a Large Opportunity • Very high level of interest in this application across the board • Increased demand from US sites to participate in STAR trials • Increasing adoption as standard of care in heart centers around the world • Growing body of evidence demonstr
Slide 39: Non-FDA Clinical Programs
Non-FDA Clinical Programs PROGRAM Status Next Steps Target CTC Registry (n=100) US Completed - Data Readouts Presentations 2022 COVID-19 + ECMO ISICEM, EuroELSO, ESICM Publications PROCYSS RCT Interim Analysis (n=160) GER Enrolling at >50% of sites 2023 (50% Enrollment) Septic Shock Hep-On-Fire (n=3
Slide 40: Clinical Summary
Clinical Summary • Institutions are gradually recovering from COVID and are very enthusiastic about participating in our studies • Our expert clinical team is laser focused on STAR-T/STAR-D execution • Momentum is building and we reiterate our target of hitting the 1st milestone for STAR-T this summ
Slide 41: Concluding Remarks
Concluding Remarks Phillip Chan, MD, PhD Chief Executive Officer
Slide 42: Summary
Summary • As shareholders ourselves, we understand that the macro environment and stock price has created great uncertainty amongst investors • However, we firmly believe we are an innovative and solidly financed company that can weather the current turbulence, with a robust strategic and tactical p
Slide 43: Q&A Session
Q&A Session CytoSorbents Corporation NASDAQ: CTSO Investor Relations Contact Terri Anne Powers tpowers@cytosorbents.com 43