CytoSorbents Corporation · NASDAQ:CTSO
CytoSorbents — Q1 2014 Earnings Presentation
26 slides from CytoSorbents's earnings presentation, May 14, 2014
Slide 1: CytoSorbents Corporation: Q1 2014 Review
CytoSorbents Corporation OTCBB: CTSO An Emerging Leader in Critical Care Immunotherapy Q1 2014 Review – May 14, 2014
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation regarding CytoSorbents Corporation and its operating subsidiary CytoSorbents, Inc that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause actual future events or results to differ m
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: CytoSorbents is an 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: 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 by 30-50% in critically ill patients •
Slide 6: 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 7: 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 7
Slide 8: Q1 2014 Operating and Financial Highlights
Q1 2014 Operating and Financial Highlights 8
Slide 9: CytoSorb An Excellent Business Model
CytoSorb® An Excellent Business Model • Huge market CytoSorb® is sold to hospitals and critical care physicians, targeting a “need to have” $20 billion worldwide critical care opportunity addressing organ failure • Little to no competition • Critical care physicians understand the problem • It is a
Slide 10: Raised $10.2M in March 2014
Raised $10.2M in March 2014 • Fortified balance sheet with net proceeds of $9.5M cash from our financing • Enables aggressive growth strategy, focused on growing CytoSorb® sales, generating clinical data, and product development • Currently have estimated 1-2 years of cash to be supplemented with •
Slide 11: Middle East Expansion with Techno Orbits
Middle East Expansion with Techno Orbits • Exclusive distribution agreement • Includes the Gulf Cooperation Council (GCC) countries of Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Oman, and Bahrain and related states of Yemen, Iraq, and Jordan • 105 million people in this territory • Many tren
Slide 12: E.U. Approval Opens Global Distribution
E.U. Approval Opens Global Distribution Signed 18 countries including the UK, Ireland, Netherlands, Turkey, Russia, India and Middle East covering ~1.7 billion lives. Expanding to other parts of Europe and other countries outside the EU that accept the CE Mark WMC IntensivMed LLC 12
Slide 13: Q1 2014 Revenue Results
Q1 2014 Revenue Results Q1 2014 Q1 2013 % Incr. Product revenue $ 569,243 $ 176,098 223% Grant and other income 492,929 195,232 152% Total revenue $ 1,062,172 $ 371,330 186% • Q1 2014 total revenue was ~$1.1M, compared to total Q1 2013 revenues of $371,000 • CytoSorb® Q1 2014 product sales were ~$56
Slide 14: Continuing Strong Product Growth
Continuing Strong Product Growth $600,000 $569,243 CytoSorb® Product Sales $500,000 Q1 2014 Product Sales increased $400,000 81% from the prior $314,159 quarter. $300,000 $203,561 $200,000 $176,098 $127,969 $100,000 $87,960 $13,679 $0 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 14
Slide 15: Product Sales (TTM)
Product Sales (TTM) $1,400,000 Trailing Twelve Month Product Sales $1,214,932 $1,200,000 $1,000,000 Trend Line $821,787 $800,000 $595,588 $600,000 $405,706 $400,000 $310,779 $200,000 $151,574 $- Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 15
Slide 16: Working Capital
Working Capital Cash and Short-Term Investments Capital Available to Fund Growth In thousands of U.S. Dollars $12,000 • Receipt of net proceeds of $9,451,000 from our March 11, 2014 preregistered offering $10,000 Cash and has strengthened our balance sheet. Short-Term $8,000 Investments on Hand • Re
Slide 17: Rationale for Using CytoSorb for Existing and Emerging Viral Threats
Rationale for Using CytoSorb® for Existing and Emerging Viral Threats 17
Slide 18: The Influenza Emergency
The Influenza Emergency Seasonal influenza afflicts 60+ million Americans each year, hospitalizing 200,000 and killing 36,000 despite broad availability of vaccines and anti-virals* • Swine flu (2009 H1N1) pandemic lessons • We cannot rely on vaccination alone. 30-70M Americans contracted H1N1 befor
Slide 19: The Other Important Lesson Learned
The Other Important Lesson Learned Influenza patients often die when they develop “cytokine storm”and multiple-organ failure • Seasonal flu only affects the lungs, yet patients routinely die of multiple organ failure and secondary bacterial sepsis • Cytokines are an essential part of the anti-viral
Slide 20: Influenza Case Report
Influenza Case Report 56 year old man with documented H1N1 influenza with multiple organ failure Treatment day 1 2 3 4 5 6 7 IL-6 (before) pg/mL 8,076 1,025 527 172 117 120 107 IL-6 (after) pg/mL 2,621 663 289 76 110 111 94 IL-6 (% change) -68% -35% -45% -56% -6% -8% -12% ICU Begin Off Weaned off Ad
Slide 21: Lessons Learned from SARS
Lessons Learned from SARS Recovery Acute Viral Hyperactive Lung Injury Replication Immune Response (ALI/ARDS) Death • 2002-2003 Pandemic: 8,098 infected, 774 people died (~10% mortality)* • Patients died due to pulmonary complications such as ARDS (particularly in age > 60), multiple organ failure,
Slide 22: MERS Coronavirus
MERS Coronavirus • The mechanism of injury is likely the same as SARS and influenza, though mortality appears significantly higher • Based on WHO reports, there have been 538 documented cases of MERS in 17 countries, with 174 deaths (~25% mortality) with an increasing number of cases since March • M
Slide 23: Recent Visit to Saudi Arabia
Recent Visit to Saudi Arabia Prince Mohammed Bin Abdulaziz Hospital in Riyadh, Saudi Arabia 23
Slide 24: Where We Stand with MERS
Where We Stand with MERS • We have used CytoSorb® successfully in several patients with viral sepsis and multi- organ failure due to influenza, where a reduction in cytokines coincided with clinical improvement • Similarly, there is good scientific rationale to why CytoSorb® could be helpful in the
Slide 25: CytoSorbents is Leading the Way To Prevent or Treat Life Threatening Inflammation
CytoSorbents is Leading the Way To Prevent or Treat Life Threatening Inflammation • CytoSorb® targets deadly inflammation in the ICU that leads to organ failure and death • It is approved in the E.U. and is generating international revenue • Untapped $20B market opportunity and crucial unmet medical
Slide 26: 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 26