CytoSorbents Corp. (CTSO), a critical care firm, announced on Friday its preliminary results for the fourth quarter, projecting a 22% to 25% increase in product revenue. However, the company indicated that its product gross margin would decline.
Ahead of market opening on the Nasdaq, Cytosorbents shares were down approximately 11%.
For the fourth quarter, product revenue—excluding grant income—is anticipated to be between $9.0 million and $9.2 million, up from the previous year's $7.35 million.
The product gross margin is expected to be around 70%, which, while a decrease from last year's 72%, marks an improvement from the 61% reported in the third quarter. This sequential enhancement is attributed to the successful resolution of both a strategic production slowdown meant to rebalance inventory and a temporary manufacturing issue.
Looking ahead to fiscal 2024, the firm predicts that product revenue, excluding grant income, will amount to between $35.4 million and $35.6 million, translating to nearly a 14% growth from $31.1 million in 2023.
Phillip Chan, CEO of CytoSorbents, stated, "We are pleased with our topline performance in the quarter. Our strong year-over-year growth reflects solid execution of our core international business, emphasizing the vital role of CytoSorb, our leading product, in addressing various critical care and cardiac surgery needs."
He added, "This robust top-line performance as we approach 2024, alongside our return to more normalized product gross margins, positions us favorably to enhance efficiencies within our core operations as we gear up to enter the North American market with DrugSorb-ATR. This aims to mitigate severe perioperative bleeding in CABG surgery caused by Brilinta, pending approvals from the FDA and Health Canada."
The company plans to release its full results for the fourth quarter and fiscal year 2024 on March 6.
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