Cytosorbents Corporation · NASDAQ:CTSO
Cytosorbents — Biotech Showcase 2020
27 slides from Cytosorbents's conference presentation, Jan 13, 2020
Slide 1: Helping Reduce Deadly Uncontrolled Inflammation in Hospitalized Patients Worldwide
HELPING REDUCE DEADLY UNCONTROLLED INFLAMMATION IN HOSPITALIZED PATIENTS WORLDWIDE NASDAQ: CTSO Biotech Showcase Presentation January 13, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements” pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future re
Slide 3: CytoSorbents is a Leader in Critical Care Immunotherapy
CytoSorbents is a Leader in Critical Care Immunotherapy Leading the Prevention or Treatment of Life-Threatening Inflammation in the ICU and Cardiac Surgery using CytoSorb® Blood Purification 3
Slide 4: CytoSorbents At a Glance (NASDAQ: CTSO)
CytoSorbents At a Glance (NASDAQ: CTSO) • CytoSorbents (NASDAQ: CTSO) is a New Jersey-based, vertically-integrated medical device company that specializes in blood purification to treat life-threatening conditions • CytoSorb® is E.U. approved as an extracorporeal cytokine adsorber to help treat hype
Slide 5: Pre-Announcement of Q4 2019 and Full Year 2019 Preliminary Unaudited Financials
Pre-Announcement of Q4 2019 and Full Year 2019 Preliminary Unaudited Financials • Cumulative CytoSorb treatments surpassed 80,000 for the first time, up from 56,000 at the end of 2018 • Q4 2019 Total Revenue (including product sales and grant income) was ~$7.4M versus $6.1M a year ago, an increase o
Slide 6: Uncontrolled Inflammation is Deadly
Uncontrolled Inflammation is Deadly Sepsis Trauma Influenza Burn Injury Millions Die Of Uncontrolled Deadly Inflammation Each Year Lung Injury Cytokine Release Syndrome Pancreatitis Liver Failure Surgical Complications 6
Slide 7: Massive Inflammation Causes Organ Failure
Massive Inflammation Causes Organ Failure Organ failure occurs when vital organs stop working, causing nearly half of all deaths in the ICU. Little can be done to prevent or treat organ failure today 7
Slide 8: No Ideal Options to Treat Severe Inflammation
No Ideal Options to Treat Severe Inflammation Anti-Inflammatory Immunosuppressive (too weak) (too strong) NSAIDs Corticosteroids Aspirin Chemotherapy Anti-cytokine Organ transplant Anti-rejection drugs antibodies Radiation Anti-integrin antibodies Immune system ablation Anti-oxidants Anti-leukocyte
Slide 9: CytoSorb Bridges the Gap
CytoSorb Bridges the Gap Anti-Inflammatory Immunosuppressive (too weak) (too strong) NSAIDs Corticosteroids Aspirin Chemotherapy Anti-cytokine Organ transplant antibodies Anti-rejection drugs Anti-integrin Radiation antibodies Immune system Anti-oxidants ablation Anti-leukocyte Abs 9
Slide 10: CytoSorb Reduces the Fuel to the Fire
CytoSorb® Reduces the Fuel to the Fire • CytoSorb® targets the $20+ billion opportunity in critical care and cardiac surgery • Approved in the European Union as the first specifically approved extracorporeal cytokine adsorber • Broad indication for use where cytokines are elevated • Removes cytokine
Slide 11: Patented Blood Purification Technology
Patented Blood Purification Technology The underlying blood purification technology is based on 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 . • Proprietary patented technology with multip
Slide 12: CytoSorb is "Plug and Play"
CytoSorb is “Plug and Play” Compatible with Existing Dialysis and Heart-Lung Machines • Place a temporary dialysis catheter in a major vein • Connect the device to a standard dialysis, ECMO, or heart-lung machine found in hospitals worldwide • Pump blood out of the body and through the cartridge • T
Slide 13: 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 13
Slide 14: Refractory Septic Shock
Refractory Septic Shock Prospective, single arm study in 20 patients with refractory late-stage septic shock using CytoSorb aggressively every 12 hours with a new cartridge • Patients had refractory shock despite high doses of vasopressors, respiratory failure requiring mechanical ventilation, oligo
Slide 15: CytoSorb Has a Hybrid Sales Model
CytoSorb® Has a Hybrid Sales Model 58 Countries Worldwide and 80,000+ treatments Critical Care and Cardiac Surgery Direct Sales Distributor and Partner Sales Direct sales in 10 countries: Distributor and Partner sales in 48 countries Germany, Austria, Switzerland, Belgium, Recently added Mexico and
Slide 16: CytoSorb Is a High Margin "Razorblade"
CytoSorb® Is a High Margin “Razorblade” • High margin “razorblade” fully compatible with existing installed base of “razor” blood pumps: Dialysis/CRRT, ECMO machines (ICU), heart-lung machines (OR) • Blended gross margins are at or near 80% in Q4 2019, driven by volume production from our new manufa
Slide 17: CytoSorb Product Sales: Quarterly Product Sales Resume Growth
$0 $1,000,000 $2,000,000 $5,000,000 $6,000,000 $7,000,000 $3,000,000 $4,000,000 $569,243 $663,233 $1,031,761 $871,150 $703,658 $773,112 $1,071,459 $1,495,590 $1,597,449 $1,852,670 $2,143,116 CytoSorb® Product Sales $2,612,801 $2,596,133 $3,041,012 $3,448,661 $4,296,047 $4,433,296 $5,245,555 $5,102,7
Slide 18: Continued Annual Sales Growth and Product Margin Expansion
Continued Annual Sales Growth and Product Margin Expansion Product Sales Blended Product Gross Margin $25,000,000 80% $22,760,778 78% $20,252,382 $20,000,000 76% 74% $15,000,000 72% $13,381,853 70% $10,000,000 68% $8,206,036 66% $5,000,000 $4,043,819 64% $3,135,387 62% $- 60% 2014 2015 2016 2017 201
Slide 19: Forecast CytoSorbents 2020: Faster Growth Ahead
Forecast CytoSorbents 2020: Faster Growth Ahead 19
Slide 20: Demand for CytoSorb Continues to Grow
Demand for CytoSorb Continues to Grow • CytoSorb sales are driven primarily by re-orders with ~85% of our invoices from repeat customers • The average number of CytoSorb cartridges per invoice at many accounts continues to rise, demonstrating increased usage and adoption • Usage is increasing becaus
Slide 21: Investing for Growth
Investing for Growth • Direct sales are ~75% of our product sales, with higher product gross margins • Doubled the number direct sales countries from 5 to 10 in 2019, adding Poland, Sweden, Netherlands, Norway and Denmark, to Germany, Austria, Switzerland, Belgium and Luxembourg (adding a population
Slide 22: Strong Focus on Germany
Strong Focus on Germany • Germany is the largest medical device market in the E.U. and the third largest in the world. The German market alone represents a $1.0-1.5 billion total addressable market for CytoSorb • CytoSorb has a strong foundation for growth in Germany • Outstanding sales team, includ
Slide 23: Sales of CytoSorb in Germany
Sales of CytoSorb in Germany 12 reps $24M $2.0M per • Subdivided Germany to shrink territories to allow maximization of revenue opportunity: rep $22M Enables focus and growth of key accounts, increased efficiency due to shorter travel, and ability to detail small and mid-sized hospitals better $1.8M
Slide 24: New Application May Be Key Driver for 2020
New Application May Be Key Driver for 2020 • Anti-thrombotic drugs, such as Eliquis®, Xarelto®, Pradaxa®, Brilinta®, Plavix® and others are blockbuster products with collective sales of more than $20 billion • 6+ million people in the U.S. are on these medication to reduce stroke and cardiac risk fo
Slide 25: Near Term Clinical Data May Catalyze Sales
Near Term Clinical Data May Catalyze Sales Also CytoSorb ® Indication Pre-Clinical Safety Feasibility Pivotal APPROVED Post-market Cytokine Storm, EU Liver Disease Extracorporeal Cytokine, Bilirubin, and Myoglobin Adsorber EU Endocarditis REMOVE Endocarditis Trial – Germany (complete/over-enrolling)
Slide 26: Investment Summary
Investment Summary • We believe we are a unique company in the medical device space with a high margin razorblade in another’s razor business model • We are helping to treat some of the largest unmet medical needs in modern medicine and are riding the wave of multiple macro trends • Aging baby boome
Slide 27: Dr. Phillip Chan, MD, PhD – CEO
NASDAQ: CTSO Dr. Phillip Chan, MD, PhD – CEO pchan@cytosorbents.com