Hold Rating on Cytosorbents Amid Regulatory Uncertainties and Mixed Clinical Results

In a report released today, Sean Lee CFA from H.C. Wainwright maintained a Hold rating on Cytosorbents (CTSO – Research Report), with a price target of $1.00.

Sean Lee CFA has given his Hold rating due to a combination of factors surrounding Cytosorbents’s current position and future prospects. The company’s recent pivotal STAR-T study for their DrugSorb-ATR did not meet its primary endpoint which was to reduce peri-operative bleeding events. Although a post-hoc analysis suggested significant reductions in severe bleeding complications for a subset of patients in coronary artery bypass graft surgery, this was not the original primary outcome. Moreover, Lee notes that regulatory bodies may require further confirmatory studies, which adds an element of uncertainty to the approval process of DrugSorb-ATR.

In terms of valuation, Lee maintains a Neutral stance on Cytosorbents with a 12-month price target of $1.00, calculated using a blend of price-sales and price-earnings multiples, both adjusted for a specific discount rate. The company faces multiple risks including clinical, commercial, financial, partnership, and intellectual property challenges. The combination of these risk factors and the current uncertainty surrounding the regulatory approval based on post-hoc results rather than the primary study endpoint supports the decision to issue a Hold rating on CTSO shares.

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Cytosorbents (CTSO) Company Description:

CytoSorbents Corp. engages in the research and development of blood purification technology for the reduction of deadly uncontrolled inflammation in hospitalized patients. Its product include CytoSorb, ContrastSorb, HemoDefend, VetResQ, and DrugSorb. The company was founded by Joseph Rubin on April 25, 2002 and is headquartered in Monmouth Junction, NJ.