Cytosorbents Corporation · NASDAQ:CTSO
Cytosorbents — Q3 2014 Earnings Presentation
43 slides from Cytosorbents's earnings presentation, Nov 12, 2014
Slide 1: CytoSorbents Corporation Q3 2014 Review
CytoSorbents Corporation OTCQB: CTSO An Emerging Leader in Critical Care Immunotherapy Q3 2014 Review – November 12, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation regarding CytoSorbents Corporation and its operating subsidiaries CytoSorbents, Inc (now known as CytoSorbents Medical Inc) and CytoSorbents Europe GmbH that are not historical facts are forward-looking statements and are subject to risks and unc
Slide 3: Conference Call Participants
Conference Call Participants Dr. Phillip Chan, MD, PhD Chief Executive Officer and President Vincent Capponi, MS Chief Operating Officer Kathleen Bloch, MBA, CPA Chief Financial Officer Dr. Christian Steiner, MD Vice President of Sales and Marketing Christopher Cramer, MS, MBA Vice President of Busi
Slide 4: Emerging Leader in the $20B Critical Care Immunotherapy Space
CytoSorbents is an Emerging Leader in the $20B Critical Care Immunotherapy Space Leading the Prevention or Treatment of Life-Threatening Inflammation in the ICU 4
Slide 5: Inflammation Plays a Major Role in Nearly Every Known Disease
Inflammation Plays a Major Role in Nearly Every Known Disease • Life threatening conditions like sepsis & trauma • Autoimmune diseases like rheumatoid arthritis, inflammatory bowel, psoriasis, and lupus • Heart disease, peripheral artery disease • Cancer, cancer cachexia, graft vs host disease • Neu
Slide 6: Severe Inflammation Drives Organ Failure
Severe Inflammation Drives Organ Failure Organ failure occurs when vital organs stop working, causing nearly half of all deaths in the ICU, but little can be done to treat or prevent it today 6
Slide 7: CytoSorb Removes the Fuel to the Fire
CytoSorb® Removes the Fuel to the Fire • CytoSorb® represents a powerful immunotherapy to control inflammation • Approved in the European Union as the only specifically approved extracorporeal cytokine filter • Clinically proven to reduce key cytokines in blood in critically-ill patients • Approved
Slide 8: The Heart of the Technology
The Heart of the Technology The underlying blood purification technology is based on state-of-the-art biocompatible, highly porous polymer beads that act like tiny sponges to remove harmful substances from blood Each bead is about the size of a grain of salt . • Protected by 32 issued US patents and
Slide 9: Goal: To Prevent or Treat Organ Failure
Goal: To Prevent or Treat Organ Failure Improve Decrease Patient Costs Of Outcome ICU and and Patient Survival Care Sepsis ARDS Burn Injury Trauma Pancreatitis Influenza Surgical The Potential to Revolutionize Critical Care Medicine 9
Slide 10: CytoSorb Marketed in 19 Countries
CytoSorb® Marketed in 19 Countries Available for sale in all 28 countries in the EU. Sold direct in Germany, Austria, and Switzerland. Established distribution in the UK, Ireland, Netherlands, Turkey, Russia, India, Taiwan, and Middle East covering ~1.7 billion lives. Expanding to other EU countries
Slide 11: $15+ Million in US Government Support
$15+ Million in US Government Support • DARPA awarded $3.8M five year (2012-present) contract as part of “Dialysis-Like Therapeutics” program to treat sepsis by removing cytokines and pathogen-derived toxins • U.S. Army awarded $1.15M SBIR contracts for trauma and burn injury research (2011-present)
Slide 12: Winner of the GREAT Tech Awards
Winner of the GREAT Tech Awards In October, CytoSorbents was awarded the UK GREAT Tech Awards for Health, sponsored by the United Kingdom Trade & Investment and the British Consulate in New York. GREAT Tech Awards selected one winner from one of 6 categories from a pool of more than 130 high growth
Slide 13: Launched International CytoSorb Registry
Launched International CytoSorb Registry • Available now in both English and German and is active with registrants 13
Slide 14: Established World Class U.S. Cardiac Surgery Advisory Board
Established World Class U.S. Cardiac Surgery Advisory Board Dr. Joe Zwischenberger, M.D. - SAB Chair University of Kentucky Dr. Robert Bartlett, M.D. University of Michigan Dr. Paul Checchia, M.D. Texas Children’s Hospital in Houston Dr. Jonathan William Haft, M.D. University of Michigan Dr. Nichola
Slide 15: Expansion of Biocon Partnership
Expansion of Biocon Partnership • According to Biocon, hundreds of patients have benefited from CytoSorb® therapy and orders continue to increase • Expanded agreement beyond sepsis to all critical care applications and cardiac surgery with a focus on the systemic inflammatory response syndrome (SIRS
Slide 16: Cardiac Surgery Initial Partnership
Cardiac Surgery Initial Partnership • CytoSorbents announced that following significant due diligence, it has entered into an initial partnership with a top-four global medical device company in cardiac surgery and other cardiovascular diseases, to use CytoSorb® intra-operatively during cardiac surg
Slide 17: Ebola, HemoDefend, Study Updates
Ebola, HemoDefend, Study Updates Ebola • CytoSorb® is currently in 5 of 7 major hospitals in Germany that are prepared to accept Ebola patients. Have had communications with WHO, CDC, FDA, NIAID, USAMRIID, treatment hospitals in the US, and others. Ebola patients have undergone dialysis, a critical
Slide 18: Q3 2014 Operating and Financial Highlights
Q3 2014 Operating and Financial Highlights 18
Slide 19: Q3 2014 Comparative Revenue Results
Q3 2014 Comparative Revenue Results Q3 2014 Q3 2013 % Change Product revenue $ 1,031,761 $ 203,561 406% Grant and other income 130,586 677,131 (81)% Total revenue $ 1,162,347 $ 880,692 32% • Achieved record CytoSorb® quarterly sales of more than $1.0M for the first time, a 406% increase over $204K i
Slide 20: Nine Months Comparative Revenue
Nine Months Comparative Revenue Nine Months Nine Months % Change Ended 9/30/14 Ended 9/30/13 Product revenue $ 2,264,237 $ 507,628 346% Grant and other income 984,937 1,035,877 (5)% Total revenue $ 3,249,174 $1,543,505 111% • Total nine month revenue (ended 9/30/14) was ~$3.2M, a 111% increase over
Slide 21: Continuing Strong Product Growth
Continuing Strong Product Growth $1,200,000 CytoSorb® Product Sales $1,031,761 $1,000,000 Q3 2014 is the fifth consecutive $800,000 quarter of double digit $663,233 quarter over $569,243 quarter $600,000 growth $400,000 $314,159 $203,561 $176,098 $200,000 $127,969 $87,960 $13,679 $0 Q3 Q4 Q1 Q2 Q3 Q
Slide 22: Product Sales (TTM)
Product Sales (TTM) $3,000,000 Trailing Twelve Month Product Sales $2,578,396 $2,500,000 $2,000,000 $1,750,196 Trend Line $1,500,000 $1,214,932 $1,000,000 $821,787 $595,588 $500,000 $310,779 $405,706 $151,574 $- Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Trailing 12-month CytoSo
Slide 23: Update on Up-listing to the NASDAQ Capital Market
Update on Up-listing to the NASDAQ Capital Market 23
Slide 24: Potential Benefits of Up-listing
Potential Benefits of Up-listing • Increased visibility • We believe most institutional investors would no longer be restricted from owning our shares • We believe there our analyst coverage and news releases will be more impactful • Increased liquidity for investors • Average daily trading volume i
Slide 25: NASDAQ Volume and Price Data
NASDAQ Volume and Price Data 25
Slide 26: NASDAQ Volume and Price Data
NASDAQ Volume and Price Data 2013 OTC UPGRADES TO NASDAQ According to NASDAQ, the median stock appreciation for all 2013 OTC Upgrades was 69% in 2013 26
Slide 27: NASDAQ Volume and Price Data
NASDAQ Volume and Price Data 2013 OTC UPGRADES TO NASDAQ (cont) 2014 OTC UPGRADES TO NASDAQ According to NASDAQ, the median stock appreciation for all 2014 OTC upgrades was 15% through October 17, 2014 27
Slide 28: NASDAQ Volume and Price Data
NASDAQ Volume and Price Data 2014 OTC UPGRADES TO NASDAQ (cont) 28
Slide 29: Why Up-list Now?
Why Up-list Now? CytoSorbents is an evolving company, whose fundamentals continue to improve. We believe our profile compares favorably to other recent up-listed healthcare companies • CytoSorb® is approved in the EU, with direct sales and distribution in 19 countries worldwide • Massive multi-billi
Slide 30: The Path to Up-listing
The Path to Up-listing Completed: Met with NYSE and NASDAQ and evaluated listing requirements Transitioned to DLA Piper as SEC and corporate counsel to guide up-list process Adopted Code of Business Conduct and Ethics, updated Insider Trading Policy, clean-up of internal documentation, and for
Slide 31: After the Up-list
After the Up-list We have several goals post up-listing: • Continue to drive growth in CytoSorb® sales • Continue to build key opinion leader support • Drive deep into accounts, expand to multiple indications in multiple ICUs within each hospital • Geographic expansion with new distributors and stra
Slide 32: Consent Solicitation
Consent Solicitation You have been sent a consent solicitation statement seeking your approval of five proposals needed to up-list. Your vote is required before December 1, 2014. 1. A 25 to 1 reverse split of our Common Stock 2. To reduce authorized common stock from 800,000,000 to 50,000,000 shares
Slide 33: Share Structure Explained
Share Structure Explained There is considerable misperception on the effect of decreasing the authorized common stock share count from 800 million to 50 million shares Definitions: 1) Total authorized shares - The total number of shares authorized (voted for) by shareholders that a company can issue
Slide 34: FAQ on Authorized Shares
FAQ on Authorized Shares After giving effect to a 25 to 1 reverse split, our capital structure will approximately look as follows: Shares Outstanding ~23 million Fully Diluted Warrants, Options, others ~4 million* Share Count Authorized but unissued shares ~23 million Total Authorized shares 50 mill
Slide 35: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split Why do we need a reverse split? • To meet the minimum $4 per share price requirement to be a NASDAQ Capital Markets company • To make the total number of shares in the company a manageable and practical number that is acceptable to institutional investors
Slide 36: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split Is a Reverse Split a Good Thing or Bad Thing? • It depends on why the reverse split is being done. Consider these scenarios: • Company “X” fundamentals are deteriorating with a drop in the stock price. In order to maintain a national exchange listing, they
Slide 37: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split Where did the rest of my shares go? Have I been diluted by 25X? Have I been cheated? • No. No ownership percentage was taken from you. No dilution has been incurred solely by the reverse split • Think of your ownership as a percentage ownership of the comp
Slide 38: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split Wouldn’t I make more money if the reverse split were at a lower ratio and I had more shares? • Just as with your other stock holdings, you must look at the % increase in the share price, not the absolute dollar increase. There is no difference with a lower
Slide 39: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split Isn’t it easier for a $0.25 stock to go to $1 (four-fold) on the OTCQB than a $6.25 stock to go to $25 (four-fold) on the NASDAQ? • The stock price of any company is simply a matter of supply and demand. If supply exceeds demand, then the stock price will
Slide 40: Frequently Asked Questions on Reverse Split
Frequently Asked Questions on Reverse Split S&P 500 Index ~100% return BSDONX ~0% return, high volatility Russell 2000 Index ~100% return 40
Slide 41: Consent Solicitation
Consent Solicitation We again recommend that you review the consent solicitation statement and vote in favor of the following 5 proposals before December 1, 2014. This is a key step towards up-listing to NASDAQ. 1. A 25 to 1 reverse split of our Common Stock 2. To reduce authorized common stock from
Slide 42: Dedicated to our Co-Founder and Board Director
Dedicated to our Co-Founder and Board Director Joseph Rubin (1938-2014) 42
Slide 43: Q&A Session
Q&A Session CytoSorbents Corporation OTCBB: CTSO Phillip P. Chan, MD, PhD - CEO 7 Deer Park Drive, Suite K Monmouth Junction, NJ 08852 pchan@cytosorbents.com The Rise of An Emerging Critical Care Immunotherapy Company 43