SEEKING ALPHA TODAY ON CTSO
b]Cytosorbents (CTSO), an off the radar small cap concern, has made a decent move since I posted a positive profile on the company here on SeekingAlpha back on June 28th. Cytosorbents specializes in blood purification to control deadly inflammation in critically-ill and cardiac surgery patients. Its primary product CytoSorb is approved in the European Union and distributed in over 40 countries (but not the United States). It is used to reduce cytokine release syndrome which is known to cause organ failure, massive inflammation and death in illnesses like sepsis, lung injury and cancer immunotherapy. With the recent rally in the stock, CTSO has crept close to a $150 million market capitalization.
I have received a couple of questions on this name in the past week. My previous view on the name has not changed on this "Busted IPO" but three incremental positives have happen around Cytosorbents since my feature on it three weeks which make the story incrementally more positive. I thought I would highlight them quickly for those that may own this 'Tier 3' concern like me.
This week the company announced that it has been awarded a Small Business Technology Transfer Phase II contract in collaboration with Penn State University valued at approximately $1 million over two years to fund the continued development of blood purification technologies related to "universal" plasma. It is the second award like this it has received in recent months.
Analyst activity seems to be getting more positive around the stock as well. Last week, Cowen & Co. reiterated a Buy rating and $7 price target on CTSO. Maxim Group reissued its Buy rating and $10 price target on the shares this morning. Maxim's analyst noted one reason for his enthusiasm "CytoSorbents announced a partnership with Drogueria Ramon Gonzalez Revilla (DRGR), a leading pharmaceutical and health products distributor in Panama, to commercialize CytoSorb in the region. Under the multi-year agreement, DRGR will market CytoSorb for all critical care and cardiac surgery applications, and is subject to annual minimum purchases of CytoSorb to maintain its exclusivity. Conclusion: CytoSorbents continues to make progress on adding a new distributor to the growing list of 43 (other) countries"
Finally, after a nice little rally the stock is now above the $5 level again. A lot of institutions are barred from owning stock priced below $5.00 a share, so this should be an incrementally positive for demand for the shares.
In summary, I am still positive on the future for this small concern despite its recent rally. Incremental positives continue to hit the shares.
“Generosity is giving more than you can, and pride is taking less than you need.” ? Kahlil Gilbran
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