CytoSorbents Corporation (CTSO)

[TwoNE1]

You can find a transcript of the call at: https://seekingalpha.com/article/4343440-cytosorbents-corporation-ctso-ceo-phillip-chan-on-q1-2020-results-earnings-call-transcript?part=single

Here is what was said about scaling up manufacturing.

Andrew D'Silva

Okay. Thank you very much for the update on that. I just have two more quick questions. You provided an update in an 8-K, I believe it was last month and at the end of the 8-K you referenced expanding your manufacture – or scaling your manufacturing capabilities.

I was just a little bit curious on what we should be thinking about there. Would you be looking to establish a new facility or just add capacity within the existing facility? Any color in that would be useful. And also if you could just tie in where you are in your capacity utilization right now that would be interesting too?

Phillip Chan

Sure. Let me turn over to Vince Capponi who's been doing a great job in terms of managing that up taking capacity. Vince?

Vincent Capponi

Yes. Thank you, Phil. So just let me take that and just a couple of parts here. First, the capacity we're currently at, obviously with this surge in requirements related to COVID-19, we've really cranked up to seven days a week, 24 hours a day, right now in order to meet the demand as Cathy and Phil mentioned, we had a backlog at the end of Q1. And obviously the orders are still coming in. So we're working very rapidly to fulfill that.

We said we could supply essentially an $80 million business. We'll give exact percentages, but we're using a significant portion of the capacity of the plant. Obviously we're taking a look at potentially what the next level of expansion is going to be. Given what we've just experienced now and the fact that Christ is continuing to drive sales in Germany in the core business and treating sepsis, et cetera, we need to take a look at that and we would probably not do it within this existing facility because it's starting to get pretty large from a scale standpoint and this is really not quite designed to do that kind of work here. So we would be looking outside this facility.

But we are currently evaluating that and obviously looking very closely what the trend is in the market for us to best determine what that path will be going forward.