Slide 1: An Emerging Leader in Critical Care Immunotherapy: Q3 2014 Review
Cyto Sorbents 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 u
Slide 3: Conference Call Participants
3 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
Slide 4: Emerging Leader in the $20B Critical Care Immunotherapy Space
4 Cyto Sorbents is an Emerging Leader in the $20B Critical Care Immunotherapy Space Leading the Prevention or Treatment of Life - Threatening Inflammation in the ICU
Slide 5: Inflammation Plays a Major Role in Nearly Every Known Disease
5 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 • N
Slide 6: Severe Inflammation Drives Organ Failure
6 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
Slide 7: CytoSorb Removes the Fuel to the Fire
7 Cyto Sorb ® 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 • Ap
Slide 8: The Heart of the Technology
8 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 • Protected by 32 issued US patents and multiple applications pending • Manufact
Slide 9: Goal: To Prevent or Treat Organ Failure
9 Goal: To Prevent or Treat Organ Failure Sepsis ARDS Burn Injury Trauma Pancreatitis Influenza Surgical The Potential to Revolutionize Critical Care Medicine Improve Patient Outcome and Survival Decrease Costs Of ICU and Patient Care
Slide 10: CytoSorb Marketed in 19 Countries
10 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 and countries outside the EU th
Slide 11: $15+ Million in US Government Support
11 • US Dept of Health and Human Services awarded $0.5M grant (2010) for therapies that can save lives and reduce costs under the QTDP Program • NIH grant awarded $7M five year (2006 - 2010) to University of Pittsburgh and Dr. John Kellum to research CytoSorb bead for treatment of sepsis • NIH/NHLBI
Slide 12: Winner of the GREAT Tech Awards
12 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 m ore than 130 high gro
Slide 13: Launched International CytoSorb Registry
13 Launched International CytoSorb Registry • Available now in both English and German and is active with registrants
Slide 14: Established World Class U.S. Cardiac Surgery Advisory Board
14 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. Nich
Slide 15: Expansion of Biocon Partnership
15 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
Slide 16: Cardiac Surgery Initial Partnership
16 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 card
Slide 17: Ebola, HemoDefend, Study Updates
17 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 criti
Slide 18: Q3 2014 Operating and Financial Highlights
18 Q3 2014 Operating and Financial Highlights
Slide 19: Q3 2014 Comparative Revenue Results
19 Q3 2014 Comparative Revenue Results • Achieved record CytoSorb® quarterly sales of more than $1.0M for the first time, a 406% increase over $204K in the same period in 2013. Product sales were driven by continued usage and strong reorders from direct customers and distributors • Third quarter 201
Slide 20: Nine Months Comparative Revenue
20 Nine Months Comparative Revenue • Total nine month revenue (ended 9/30/14) was ~$3.2M, a 111% increase over $1.5M in total revenue for the same period in 2013 • CytoSorb ® product sales fueled the increase in total revenues, with $2.3M in sales in the first nine months of 2014, a 346% increase fr
Slide 21: Continuing Strong Product Growth
21 Continuing Strong Product Growth $13,679 $87,960 $176,098 $127,969 $203,561 $314,159 $569,243 $663,233 $1,031,761 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 CytoSorb ® Product Sales 21 Q3 2014 is the fifth c
Slide 22: Product Sales (TTM)
22 Product Sales (TTM) $151,574 $310,779 $405,706 $595,588 $821,787 $1,214,932 $1,750,196 $2,578,396 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Trailing Twelve Month Product Sales Trend Line Trailing 12 - month C
Slide 23: Update on Up-listing to the NASDAQ Capital Market
23 Update on Up - listing to the NASDAQ Capital Market
Slide 24: Potential Benefits of Up-listing
24 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 vol
Slide 25: NASDAQ Volume and Price Data
25 NASDAQ Volume and Price Data
Slide 26: NASDAQ Volume and Price Data: 2013 OTC Upgrades
26 NASDAQ Volume and Price Data According to NASDAQ, the median stock appreciation for all 2013 OTC Upgrades was 69% in 2013 2013 OTC UPGRADES TO NASDAQ
Slide 27: NASDAQ Volume and Price Data: 2014 OTC Upgrades
27 NASDAQ Volume and Price Data 2014 OTC UPGRADES TO NASDAQ According to NASDAQ, the median stock appreciation for all 2014 OTC upgrades was 15% through October 17, 2014 2013 OTC UPGRADES TO NASDAQ (cont)
Slide 28: NASDAQ Volume and Price Data: 2014 OTC Upgrades (cont)
28 NASDAQ Volume and Price Data 2014 OTC UPGRADES TO NASDAQ (cont)
Slide 29: Why Up-list Now?
29 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 mul
Slide 30: The Path to Up-listing
30 The Path to Up - listing Completed: x Met with NYSE and NASDAQ and evaluated listing requirements x Transitioned to DLA Piper as SEC and corporate counsel to guide up - list process x Adopted Code of Business Conduct and Ethics, updated Insider Trading Policy, clean - up of internal documentation
Slide 31: After the Up-list
31 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
Slide 32: Consent Solicitation
32 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 s
Slide 33: Share Structure Explained
33 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 - T he total number of shares authorized (voted for) by shareholders that a company can i
Slide 34: FAQ on Authorized Shares
34 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 Warrants, Options, others ~4 million* Authorized but unissued shares ~23 million Total Authorized shares 50 million NOTE: The reverse s
Slide 35: Frequently Asked Questions on Reverse Split
35 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 investo
Slide 36: Frequently Asked Questions on Reverse Split
36 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, t
Slide 37: Frequently Asked Questions on Reverse Split
37 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
Slide 38: Frequently Asked Questions on Reverse Split
38 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 lo
Slide 39: Frequently Asked Questions on Reverse Split
39 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 pric
Slide 40: Frequently Asked Questions on Reverse Split
40 Frequently Asked Questions on Reverse Split S&P 500 Index ~100% return Russell 2000 Index ~100% return BSDONX ~0% return, high volatility
Slide 41: Consent Solicitation
41 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
Slide 42: Dedicated to Co-Founder Joseph Rubin (1938-2014)
42 Dedicated to our Co - Founder and Board Director Joseph Rubin (1938 - 2014)
Slide 43: Q&A Session
43 Phillip P. Chan, MD, PhD - CEO 7 Deer Park Drive, Suite K Monmouth Junction, NJ 08852 pchan@cytosorbents.com Cyto Sorbents Corporation OTCBB: CTSO The Rise of An Emerging Critical Care Immunotherapy Company Q&A Session