CytoSorbents names Peter Mariani as new CFO

PRINCETON, N.J. - In a strategic move, CytoSorbents Corporation (NASDAQ: CTSO) announced the appointment of Peter J. Mariani as Chief Financial Officer, commencing August 14, 2024. Mr. Mariani, an experienced financial executive, will take over from Kathleen P. Bloch, who is retiring after a significant tenure at the company.

Mr. Mariani's career spans over 25 years in financial roles within the medical device sector. His most recent position was at Axogen, Inc (NASDAQ: AXGN), where as CFO he contributed to the company's growth from $27 million to approximately $160 million in annual revenue. He also played a pivotal role in raising capital and expanding clinical applications.

Dr. Phillip Chan, CEO of CytoSorbents, expressed confidence in Mariani's ability to steer the company through its next growth phase. The company, known for its blood purification therapies, is currently seeking U.S. and Canadian marketing approval for its DrugSorb-ATR technology.

CytoSorbents' technology is widely used in critical care and cardiac surgery to reduce the risk of organ failure and patient death caused by cytokine storms. The company's primary product, CytoSorb, has been utilized in over 248,000 instances as of June 30, 2024, and is distributed in 76 countries.

Mariani's appointment comes at a crucial juncture for CytoSorbents, as the company anticipates FDA and Health Canada approval for DrugSorb-ATR, which is expected to provide a significant market opportunity in cardiac surgery.

In other recent news, CytoSorbents Corporation has seen several significant developments. The company reported a 14% increase in product sales in the first quarter of 2024, amounting to $9 million, and an improved product gross margin of 76%.

Additionally, CytoSorbents has secured a $20 million credit facility with Avenue Capital Group, aiming to bolster global commercialization efforts for its CytoSorb product line and upcoming regulatory submissions for DrugSorb-ATR.

CytoSorbents has also regained compliance with Nasdaq's minimum bid price requirement, following a period of aggressive cost-cutting measures and operational advancements. The company's CEO, Dr. Phillip Chan, highlighted the strategic positioning ahead of anticipated regulatory submissions for their DrugSorb-ATR marketing approval to the U.S. FDA and Health Canada.

Furthermore, CytoSorbents' CytoSorb device has received regulatory approval from the Taiwan Food and Drug Administration, marking a significant expansion into the Taiwanese market. The device will be distributed in Taiwan by Hemoscien Corporation.

In addition to these developments, CytoSorbents is preparing to submit marketing applications for its DrugSorb-ATR system in the U.S. and Canada. The company is also anticipating the launch of its PuriFi hemoperfusion pump in select international markets. These recent developments reflect CytoSorbents' strategic growth and expansion in the medical device sector.

InvestingPro Insights

As CytoSorbents Corporation (NASDAQ: CTSO) welcomes Peter J. Mariani as the new CFO, the company's financial health remains a focus for investors. According to InvestingPro data, CytoSorbents has a market capitalization of $48.39 million. Despite a modest revenue growth of 3.5% over the last twelve months as of Q1 2024, the company's operating income margin stands at a challenging -74.43%, reflecting significant operating costs in relation to its revenue. Moreover, with a negative P/E ratio of -1.51, the market currently does not expect earnings growth in the near term.

InvestingPro Tips highlight several cautionary points for potential investors. CytoSorbents is quickly burning through cash and has not been profitable over the last twelve months. Analysts do not anticipate the company will be profitable this year, which aligns with the financial data showing a negative return on assets of -52.69%. Additionally, the stock has taken a considerable hit, with the price having fallen significantly over the last year, culminating in a 69.69% decline in the one-year price total return as of the same date.

It's also worth noting that CytoSorbents does not pay a dividend to shareholders, which could be a factor for income-focused investors to consider. For those interested in a deeper dive, there are 6 additional InvestingPro Tips available at https://www.investing.com/pro/CTSO, providing a more comprehensive analysis of the company's financial health and stock performance.

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