CytoSorbents Corporation (CTSO)

[ping_pow_princess]

Toraymyxin and Cytosorb Prices & Gross Margin

Toraymyxin & Spectral's Endotoxin Activity Assay Test

* Current reimbursement rate of $10,000
* Gross margin: >70%

Slide 15:
http://www.tmx.com/en/pdf/otr/7-13-2010_OTR-SDI.pdf

Dundee Capital Markets:

"Large market potential - if the EUPHRATES Phase 3 is successful, the U.S. market opportunity for Toraymyxin would be substantial. There are approximately 750,000 cases of sepsis reported each year in the U.S., and about one third (250,000) progress to severe sepsis. Spectral estimates that about half the severe patients (125,000) have high endotoxin levels – this is the primary target market for Toraymyxin. Assuming a per patient treatment cost of $10,000 (on par with Xigris), the U.S. target market opportunity at 100% penetration would be $1.25 billion."

Cytosorb

* "Although CytoSorb is not yet approved and pricing is still preliminary, the company points to another drug detoxification blood purification cartridge on the market that sells for more than $500 each. At that price point with CytoSorb, the company expects gross margins to be in excess of 80% in volume. With seven days of treatment, the total patient treatment cost would be $3,500, well below the average cost of $65,000 to treat a sepsis patient in the U.S., he contends."

http://biotuesdays.com/2011/03/22/2011-could-be-transition-year-for-cytosorbents/

* As a cytokine filter, US and EU total addressable market for these apps is ~ $10-15 billion (CTSO powerpoint)

* For sepsis only, based on 7 day treatment, $500/device and annual incidence of severe sepsis of 3 in 1000, $3.5 Billion US Market (~1 million severe sepsis patients/year) and $5.3 Billion EU Market (~1.5 million severe sepsis patients/year) (CTSO powerpoint)

* Dr Chan is referring to the Gambro Absorba in the BioTuesday article. Quotes received by Dr Chan are 1000 to 1500 EURO in Europe and $500 in US.