NASDAQ:CTSO Cytosorbents Q2 2023 Earnings Report $1.07 -0.03 (-2.73%) Closing price 04/23/2025 04:00 PM EasternExtended Trading$1.07 0.00 (0.00%) As of 04/23/2025 06:00 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings HistoryForecast Cytosorbents EPS ResultsActual EPS-$0.14Consensus EPS -$0.11Beat/MissMissed by -$0.03One Year Ago EPSN/ACytosorbents Revenue ResultsActual Revenue$9.42 millionExpected Revenue$11.03 millionBeat/MissMissed by -$1.61 millionYoY Revenue GrowthN/ACytosorbents Announcement DetailsQuarterQ2 2023Date8/1/2023TimeN/AConference Call DateTuesday, August 1, 2023Conference Call Time4:30PM ETUpcoming EarningsCytosorbents' Q1 2025 earnings is scheduled for Thursday, May 8, 2025, with a conference call scheduled at 4:30 PM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q1 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Cytosorbents Q2 2023 Earnings Call TranscriptProvided by QuartrAugust 1, 2023 ShareLink copied to clipboard.There are 15 speakers on the call. Operator00:00:00Afternoon, and welcome to the CytoSorbents Second Quarter 2023 Financial and Operating Results Conference Call. At this time, all participants are in a listen only mode. Following the formal remarks, we will open the call for your questions. Please be advised that the call will be recorded at the company's request. At this time, I'd like to turn the call over to our moderator, Taylor Devlin. Operator00:00:21Please go ahead, Taylor. Speaker 100:00:25Thank you, and good afternoon. Welcome to CytoSorbents' Second Quarter 2023 Financial and Operating Results Conference Call. Joining me today from the company are Doctor. Philip Chan, Chief Executive Officer Vincent Capponi, President and Chief Operating Officer Kathleen Black, Interim Chief Financial Officer Doctor. Estemios Delhaegiris, Chief Medical Officer Doctor. Speaker 100:00:53Christian Steiner, Executive Vice President of Sales and Marketing I'm Managing Director of CytoSorbents Europe GmbH Christopher Kramer, Senior Vice President of Business Development Doctor. Irina Kulinitz, Senior Vice President of Regulatory. Before I turn the call Over to Doctor. Chan, I'd like to remind listeners that during the call, management's prepared remarks may contain forward looking statements, which are subject to risks and uncertainties. Management may make additional forward looking statements in response to your questions today. Speaker 100:01:33Therefore, the company claims protection under Safe Harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from results discussed today, and therefore, we refer you to a more detailed discussion Of these risks and uncertainties in the company's filing with the SEC, any projections as to the company's future performance Represented by management include estimates today as of August 1, 2023, and we assume no obligation to update these projections in the future as market conditions change. During today's call, we will have an overview presentation Covering the operating and financial highlights for Q2 of 2023 by Doctor. Chan and Ms. Block. Speaker 100:02:26Following that presentation, we will open the line to your questions during the live Q and A session with the rest of the management team. And now it's my pleasure to turn the call over to Doctor. Philip Chan. Speaker 200:02:39Thank you very much, Taylor, and good afternoon. Today, I have the pleasure of being able to update you on our most recent operational progress. We recently announced that the pivotal START T trial completed enrollment ahead of internal projections with strong performance amongst our 30 clinical centers in the United States and Canada. This followed the 2nd independent data and safety monitoring board evaluation in June on unblinded safety data on AD patients Where the DSMB recommended completion of the trial without modification. In the Q2 of 2023, We achieved total revenue of $9,400,000 including product sales of $8,100,000 versus $7,300,000 in product sales a year ago, Representing the 3rd consecutive quarter of sequential product sales growth. Speaker 200:03:29Product gross margins grew 700 basis points to 74% from 67% a year ago, and we have now exceeded 212,000 cumulative Human treatments delivered across 75 countries worldwide. We announced the appointment of Alex D'Amico as new Chief Financial Officer To start next week, August 7, 2023, Alex brings 20 years of broad finance, SEC reporting, M and A, fundraising and accounting experience to the company and our outgoing Chief Financial Officer, Kathy Block will stay on as a consultant and help to manage the transition. We also introduced Michael Batar as the new Chairman of the Board at the Annual Meeting in June. Michael has been a Board Director since 2015 and currently serves as a Founder and Partner of Quartz Advisory Group, a capital markets investment bank. Michael was also the former Managing Director of Healthcare Research at Genesys and Associates, a very large family of funds with more than 175 1,000,000,000 in assets under management. Speaker 200:04:33Last but not least, we announced the Theragnotic collaboration with Humedix. Qmedix is the manufacturer of the EU approved LiveMax liver function test that is used in liver patients to evaluate The functioning of the liver. We announced a 1 year joint marketing agreement where their sales force and ours in respect to territories We'll cross market CytoSorb as a superior extracorporeal liver support technology And LYMAX as a unique liver function test for the treatment of liver disease. As we've discussed previously, we are focused on 3 major objectives for 2023. The first is opening the U. Speaker 200:05:17S. And Canadian markets with drugSorb ATR. The second is a return to sales growth of CytoSorb and the third is to reduce our cash burn and have tight control over expenses. In terms of opening the U. S. Speaker 200:05:32And Canadian markets with drugZURP ATR, I would like to note again that drugZURP ATR and START T, Which stands for the Safe and Timely Antithrombotic Removal of Ticagrelor trial remains the core focus of our clinical efforts And the vehicle expected to open the U. S. And Canadian markets. This leverages 2 FDA breakthrough device designations for drugs or ATR to remove blood thinning medications in patients undergoing cardiac surgery. One of these breakthrough device designations is And also the second one is for the direct oral anticoagulants of which Eliquis and Xarelto are the leading ones in that category. Speaker 200:06:15In addition, following independent data safety monitoring board review of the first eighty Patients' safety data in the START T trial and recommendation to continue the trial without modifications, we are pleased to announce that START T enrollment has now completed. This helps to validate the decision to forego the interim analysis at 80 patients that we discussed on the last earnings call. And we expect that the trial to complete imminently following the last 30 day patient follow-up. We believe this sets us up for near term milestones that are rapidly approaching, which is why I have this picture of a mirror that says objects in the mirror are closer than they appear. First, we expect to get the database lock in the next several months, followed by statistical data analysis. Speaker 200:07:02This should hopefully lead to top line data targeted by year end, and if positive, regulatory submission to U. S. FDA and Health Canada to follow. We also expect to present data at a major cardiovascular conference next year. And pending visibility, we begin We plan to begin executing on our pre commercialization strategy and begin building a direct sales and marketing infrastructure in 2024. Speaker 200:07:31One thing that we really haven't discussed extensively in the past are the dynamics that may actually help expand Ticagrelor market share In the United States and Canada, but particularly in the United States. And more ticagrelor use means As we've discussed in the past, patients with acute coronary syndrome Who come into the emergency room with signs and symptoms of having a heart attack often get dual antiplatelet therapy. This consists of aspirin Plus one of the P2Y12 platelet inhibitors such as Brilinta or ticagrelor Plavix or clopidogrel Or Effient, also known as Prasigrel. Brilinta has superior antithrombotic efficacy to Plavix, Plavix is generic and cheap and BRILINTA today is still a branded drug. However, this is expected to change as BRILINTA will go generic in 2024 to become just generic ticagrelor With multiple competitors with tentatively approved abbreviated NDAs that have already been approved by the FDA, The price of ticagrelor is expected to fall, potentially enabling market share gains against clopidogrel and the more expensive branded Effion. Speaker 200:08:53A recent publication in the well respected journal JAMA Network Open highlights U. S. Prescribing physician preference For ticarilar versus other antiplatelet agents following acute coronary syndrome and percutaneous coronary intervention, in other words, For example, stent placement in more than 62,000 patients that were studied between 2010 to 2019. And what you can see in the graph in the lower right is that during that period of 2010 to 2019, ticagrelor has steadily gained in prescribing preference for physicians Following acute coronary syndrome and PCI, to the point where now or at least in 2019, 60.4% of patients who were intervened upon in the cath lab got ticagrelor or Brilinta, while the rates of Plavix prescription have been going down to only about 30% In 2019, enprasigrel is a distant third at 10 set of prescriptions, Leading the authors to conclude that tecagrelor has emerged as the most commonly prescribed P2Y12 platelet inhibitor. In addition, the approval of drugs or ATR would make ticagrelimor the only one of these antiplatelet drugs To be reversible during CABG surgery, a potentially powerful marketing advantage to take market share. Speaker 200:10:31One can imagine Given that 5% to 10% of patients are not eligible for stent placement and wind up in surgery, That being able to reverse the drug used in dual antiplatelet therapy would be an extremely valuable marketing advantage That we could confer to ticagrelor, and we believe that this will come to pass and be true. Ultimately, this sets us up For an initial market in the United States for removal of Brilinta in cardiac surgery patients of approximately 250,000,000 And if you add Canada, this increases the total addressable market to roughly $300,000,000 to 350,000,000 The numbers of patients on Brilinta Or Citegralor in the future could rise to give us an opportunity of about a $500,000,000 total addressable market. As we told you in the past, once STAR T is completed, we are looking to resume the STAR T trial, which is looking after removal of the direct oral anticoagulants, the Factor Xa inhibitors Eliquis and Xarelto. And if we are able to Add on that indication, this could double our total addressable market to $1,000,000,000 And if we can now open it up for not just cardiac surgery, But to all kinds of surgeries and also potentially being able to be used in the emergency room, we estimate that that could Again, double the total addressable market here in the United States. Speaker 200:12:12So a second major goal for the company is a return to sales growth for CytoSorb. Again, this has been the 3rd consecutive quarter of sequential product sales growth With 10% quarterly product sales growth year over year in the Q2, we're seeing continued gradual recovery of hospital markets post COVID With continued strong customer engagement and enthusiastic response to our new data and marketing strategies, our product gross margins rose 700 basis points To 74%, reflecting volume production from our new Princeton manufacturing facility, a trend consistent with prior guidance We're returning to 75% to 80% quarterly basis year. The following messages. One, that we need to be able to treat the right patient With the right timing and the right dose. And we also need to hit hard and hit early. Speaker 200:13:08And this incorporates our evolving understanding of How best to treat patients with CytoSorb. In particular, when CytoSorb is used early and aggressively in documented hyperinflamed patients, We have seen some outstanding results. This includes the recently published CTC Therapy Registry results in the journal Critical Care, Detailing the clinical outcomes in 100 critically ill COVID-nineteen patients with severe inflammation and refractory lung failure using CytoSorb with ECMO Overall, 90 day survival was high at 74%. And in the post hoc analysis, Patients who were treated before the median treatment time of 87 hours had even higher survival at 82% Compared to 66% survival in patients treated after 87 hours. In addition, those treated in the early group had significantly shorter Medium duration times on mechanical ventilation, ECMO on the In the blue lower left hand graph, mechanical ventilation in red and ICU stay in green. Speaker 200:14:21Overall, our results compare favorably to the approximately 50% survival reported by ELSO or the extracorporeal life support organization And their COVID-nineteen registry survival data where they looked at ECMO use alone in this population. Our data support the strategy of early combined use of the NASH mode to treat severe ARDS or acute respiratory distress syndrome And refractory lung failure and is a prime example of our hit early, hit heart treatment philosophy. To this end, our current company sponsored trials such as the process refractory septic shock randomized controlled trial and the International Kosmos Critical Illness Registry Incorporate our evolving understanding of how to achieve better and more consistent results with CytoSorb. We've also been working to drive earlier usage of CytoSorb in the appropriate patients through a number of different ways, including, for example, pursuing a diagnostic strategy, in other words, using a diagnostic test To guide patient selection and timing of CytoSorb therapy, as we're doing in our collaboration with Humetics in the field of liver disease, perfusion machine as we're doing with the Pure Adjust platform from Nikhiso that can run cytosorb So with that, I'd like to turn it over to Kathy to now cover financial highlights for the quarter. Speaker 200:15:50Kathy? Speaker 300:15:54Thank you, Phil, and greetings to everyone on today's call. Let's start with our first slide on 2nd quarter revenues. For the quarter ended June 30, 2023, Total revenue, which includes product sales and grant revenue, was $9,400,000 compared to total revenue of 8,500,000 In the Q2 of 2022, which is an increase of approximately 11%. Product sales for the Q2 2023 We're $8,100,000 compared to approximately $7,300,000 for the Q2 of the prior year. And our Q2 2023 product gross margins were 74% compared to 67% For the Q2 of 2022 68% in the Q1 of 2023. Speaker 300:16:52And this Predicted improvement in gross margins is expected to continue throughout the year as we fully complete all the start up activities associated with our new And continue to ramp up production. Our 2nd quarter grant revenue was $1,300,000 compared to $1,200,000 in the same quarter of the prior year. Next slide, please. For the 6 months ended June 30, 2023, total revenue With $18,900,000 an approximately 10% increase over the $17,200,000 in total revenue for the same period of 2022. First half twenty twenty three product sales were $16,000,000 compared with $15,300,000 in the same period of 2022. Speaker 300:17:44And grant revenue was $2,900,000 in the first half of 2023 compared to $1,900,000 in the prior year. Next slide, please. This next chart depicts our trailing 12 month product sales, and it's broken down into COVID-nineteen related And core non COVID-nineteen related product sales. Our core product sales of $30,100,000 In the trailing 12 month period ended June 30, 2023, they're just slightly behind core product sales of $30,700,000 In the trailing 12 month period ended June 30, 2022, this was due to the difficult market conditions, including a shortage of healthcare workers, fewer hospital beds, less surgical procedures, as well as other factors that we have discussed in prior earnings calls. As Phil mentioned, we are continuing to see improvements in the marketplace, including our sales team's ability to better access healthcare workers in the hospital and a return to face to face discussions with physicians in the market. Speaker 300:18:53Next slide, please. And this Slide shows our quarterly product sales broken down again by COVID-nineteen related and non COVID-nineteen related core product sales. And as you can see, over the past 5 quarters, there have been no COVID-nineteen related sales. The most recent three quarters Have demonstrated sequential consecutive quarter over quarter growth in product sales with $8,100,000 in quarterly sales, Q2 2023 represents the highest quarter of core non COVID-nineteen related sales since the COVID-nineteen pandemic was contained. Next slide, please. Speaker 300:19:37And I'd like to wrap up my remarks today with some comments about our cash position. As of June 30, 2023, we had approximately $14,800,000 in cash and cash equivalents, which includes $1,700,000 of restricted cash. This includes $5,000,000 of loan proceeds received from our debt facility in December 2022. And one of our key objectives For 2023 has been to reduce our cash burn and maintain tight control over expenditures, and I'd like to elaborate on our progress on this. Over the past year, we took strong actions to reduce our quarterly cash burn, such that our quarterly cash burn over the first half Of 2023 averaged approximately $4,500,000 which is down significantly From the average quarterly cash burn in the first half of twenty twenty two, which was approximately $11,000,000 We continue to maintain tight control over cash, guided by a strict 2023 operating budget, Prioritizing spend in key programs and pipeline products. Speaker 300:20:47Our spending is fully aligned with our strategic priorities, In particular, the completion of our STAR T clinical trial designed to obtain U. S. FDA marketing approval. That will conclude my remarks for today. And at this time, I would like to turn the call back to Phil for concluding comments. Speaker 200:22:22I apologize. Thank you. Yes, so thank you very much, Kathy. I apologize for that. Today CytoSorb drives our growth. Speaker 200:22:31CytoSorb forms the foundation of our company with an EU approved product that is sold around the world That has generated approximately $200,000,000 in sales since launch in more than 200,000 human treatments around the world. It is a high margin razorblade business model with industry top tier 80 plus percent blended product gross margins. And it has had strong validation by customers, partners and government agencies. With current sales that supports near breakeven, less clinical trial costs, which we believe Helps to derisk the company and the investment opportunity. We believe CytoSorb represents the fuel for strong future growth Anticipated growth targeting the $20,000,000,000 to $30,000,000,000 worldwide total addressable market of major unmet medical needs in critical care, Cardiac surgery as well as liver and kidney disease. Speaker 200:23:22And we believe this gives Platesorbents the potential upside of a biotechnology company With the lower risk profile of a high margin medical device company with sales. But soon, we believe that the story could change With CytoSorb and DrugSorb ATR representing dual growth engines for the company. We are racing to the finish of STAR T where we are rapidly nearing of the study expected imminently with top line data expected later this year. Should STAR TV successful and DrugServe ATR Achieves U. S. Speaker 200:23:56FDA and Health Canada regulatory approval, we intend to commercialize drugs of ATR in both the U. S. And Canada, A potentially major second engine of growth working in tandem with CytoSorb to drive sales. DrugSorb may open an expected initial U. S. Speaker 200:24:12And Canadian Total addressable market at $300,000,000 to $350,000,000 for Brilinta alone, which could expand should Brilinta go generic epticagrelor, where we expect significant penetration given the major unmet medical need indicated by our FDA breakthrough device designation. If successful, this could transform CytoSorbents into a dual U. S. An international growth company that current and prospective institutional and retail shareholders are excited about and have been waiting for And that can create potentially significant value. With that, that ends our formal remarks. Speaker 200:24:52Operator, please open the Q and A session. Operator00:25:17And our first question will come from Joshua Jennings of TD Cowen. Your line is open. Speaker 400:25:23Hi, good afternoon. Thanks for taking the questions and congratulations on completing the enrollment for Startea. And Kathy, congratulations on your retirement. I was hoping to just get a refresher. I apologize for this basic question, but just Phil, if you could help us remind us about the differences just in the devices, drug sorbate ATR versus CytoSorb. Speaker 400:25:47And Reason I'm asking the question is just the study, I think CytoSorb absorption during emergency cardiac operations in patients with high risk of bleeding. I believe that CytoSorbents U. S. Sorry, EU approval or CE Mark approval For the indication to remove, china thrombotic prior to cardiothoracic surgery and just with that data that's out there and trying to Kind of use that as a signal for the prospects of success for Startea. Just want to be reminded of the differences of those two devices. Speaker 200:26:23Yes. Thanks very much, Josh. So the drugstore uses an equivalent polymer technology to CytoSorb, But DrugServe HR is more of a drug removal system with bloodlines and other things that allow it to connect to The heart lung machine. So, from a technical perspective, what CytoSorb can do, So if that is helpful. Speaker 400:26:51Absolutely. And just thinking about the interim analysis and getting through Any changes in the study protocol, I mean, I think that's a clear positive signal on The safety side, but is there any, I guess, clinical signals you would put forward either from real world experience with CytoSorb For this indication in Europe or clinical data, including that study that I just referenced, I'm in terms of the efficacy side for the Star Tea data, the signals that investors should be really considering as they're Trying to analyze the potential success of the STAR*T Study. Speaker 200:27:36I can turn that over to Mikas. Mikas, would you like to handle that and I can call her. Speaker 500:27:45Thanks. Thanks, Phil, and thanks for the question. So the As Phil mentioned previously, we have announced in our last earnings call that we're going to forgo the interim analysis based On the speed of enrollment. So the fact that we completed the study so soon would not have allowed significant amount of time, Sufficient amount of time for the interim analysis to be performed. However, by foregoing that, we did not have, Not us nor the DSMB, any further insight into the efficacy side. Speaker 500:28:23And therefore, now the data remains fully blinded as they're being By the sites, they will undergo the process of being validated and cleaned, leading to database lock, as you heard earlier. And obviously, after that, we will pursue the final analysis on the top line results of the study. So until then, We only have the DSMB review on the safety information of the trial, which we already reviewed today. We had 2 of those reviews that were both Unremarkable without any findings and without any recommendations for changes in the trial. So that's a long way to tell you that as of now, the data remain blinded, But we do have the positive feedback for the safety of the study. Speaker 400:29:03No. Thanks, Ed. Sorry for misclassifying the Safety reviews as interim analysis. And then maybe lastly, just thinking about, I mean, getting a little bit ahead of myself, but Thinking about the plans for START D and potentially kicking that study off for XERALTO and Eliquis removal, I mean, will the catalyst be or I guess, if you think about the decision tree, we need to see success in Starte, And prior to thinking about or initiating the STAR*D trial. Thanks a lot. Speaker 500:29:40Okay. So let me try to respond to that one as well. So The STAR*D trial is targeting an addressable population that's even larger than the tachyglobe population. And we've seen that not just in our Literature review of the numbers that are out there by primarily from the direct feedback from the site. So we believe that the opportunity For these 2 blockbusters, Xarelto and Eliquis is even greater than for Brilinta. Speaker 500:30:07So in that regard, it's definitely an opportunity worth pursuing. In relation to STAR*D, we are now in a very good position We have the full apparatus to execute and study in place. From our clinical team, our internal clinical team, all our vendors and our partners that we're working Most importantly, the site network from STAR T. These are highly performing sites that did excellent STAR T. So we believe that STAR*D once resumed will actually be efficiently executed and be able to enroll fast. Speaker 500:30:43The results of STAR*D will be very helpful, of course, especially relating to the safety of the device since the application is very similar. As you know, The STAR*D trial is targeting the same use of the device intraoperatively for patients undergoing cardiac surgery. So there's a lot of similarities between Two trials that we've discussed previously, but more importantly now, we have the playbook, the right partners and the right sites To execute briskly the STAR*D trial. Speaker 400:31:15Excellent. Thank you very much. Operator00:31:32And our next question comes from Yansai of B. Riley. Your line is open. Speaker 600:31:38Thank you for taking my questions. Maybe I can Start with the high level question first and then I have a follow-up. So first, during your market research, Phil, can you remind us the And are using antidotes for anticoagulants such as Andexxa, precedent in the U. S. And EU. Speaker 600:31:57Thank you. Speaker 200:32:01Sure. And actually, Mike, this is an ideal question for you. Speaker 500:32:08Sure. Thank you for the question. So the use of these reversal agents That are approved in the marketplace now, specifically ondexanet that is indicated for the reversal of the drugs Before the direct oral anticoagulants like Xarelto and Eliquis is approved in the presence of severe life threatening bleeding. So Those drugs are used when somebody has suffered a life threatening bleed. The usual measures are not successful in stopping the bleeding and then they applied. Speaker 500:32:42The population that we are addressing is actually much larger populations. These are patients at risk for bleeding. So if you can imagine, these are patients who are coming in with a heart attack. They have their cardiac angiogram. They see that they need surgery, but because they received the drug, they're sitting Waiting for the drug to wash out at risk for having a second heart attack, for example, but they're not bleeding. Speaker 500:33:06So in that population, it's as of now, there are no available solutions to help them have a timely operation, a safe and timely operation. So these patients now are waiting in the hospitals for a long time. The drugs that we're referencing would only be indicated if they were bleeding. In addition, Some case reports with these drugs were used in the setting of patients heading into surgery, especially relating to Xarelto and Eliquis, the reversal agent, edexanet, Can interfere with the necessary anticoagulation that are required when people are put on their heart lung machine. So it poses also A complicating factor that may put the operation at risk and therefore are not widely used in this setting And they're certainly not approved for that application. Speaker 500:33:57The reversal agent for the bigotran, which has a very, very small piece So the pie of the market share for these anticoagulants does carry an indication that can be used because it has been studied also in people heading to cardiac surgery. Having said that, there are so few patients on this drug, again, at least in our sites, we have not experienced any of the clinical teams Using these drugs in the setting, they're all opting to just wait and let the drugs wash out, which is exactly unmet need that we believe can target By allowing the surgery to proceed, while at the same time removing the offending agent and reducing the bleeding risk. Speaker 600:34:38Yes, got it. Thank you so much for the clarification there. As a follow-up here I have is, I'm curious about the U. S. Market When you have a third party or have third party distributors, can you clarify how will you split the responsibility? Speaker 600:34:55Will you take on the responsibility of marketing and education and then they do the face to face interaction with surgeon? Thank you. Speaker 200:35:06Vince, do you want to take that? Speaker 700:35:09Sure, Phil. I'll take that. Thanks. In the U. S, we plan to use a blended approach of direct sales and distributors. Speaker 700:35:20We have some strong distributors that we developed in during the COVID period when we're selling CytoSorbents CytoSorb under the EUA, and we will use those distributors in those select regions Since they have very, very close relationships with the cardiac surgeons. And so The rest of the U. S, we intend to focus on direct sales, specifically with probably a sales force of about 19 people. Speaker 600:35:55Got it. Thank you for the clarification. Operator00:36:02One moment for our next question. And our next question will come from Christopher Campbell of Jeff Jef. Your line is open. Speaker 800:36:18Hey, thanks for taking the question. This is Chris on for Mike. I was wondering if you could elaborate a little more on the trends you're seeing in the core German market and how that's So far through Speaker 200:36:28the Q3. Yes, we thanks very much, Chris. We, Christian, would you like to comment on that? There's only so much we can say about Q3 results so far, but Christian, Feel free to try. Speaker 500:36:46Yes. Thank you. And thank Speaker 900:36:48you, Christopher, for the question. So as Chris said, we cannot obviously I'll comment on the Q3, but as you have seen already in the 1st and second quarter, there's a Significant improvement compared to last year. This is mainly because we have a much better access to the hospital And also will be, I think, carried in the next half year by a number of indications we have received over the first half. So all this together has to balance the still critical or Complicated situation in the hospitals. There are still ICU capacities blocked because there's not there's a shortage of staff And there's still less cardiovascular interventions compared to before the pandemic. Speaker 900:37:44But The charts which have been shown by Kathy show that we are already Much higher with the core business compared to the business before the pandemic, but also considering the core business during the pandemic. I think it's a stable improvement. And yes, the second half Operator00:38:25One moment for next question. And our next question will come from Jim Molloy with Alliance Global Partners. Speaker 1000:38:41Hello. This is Laura Suriel calling in for Jim Molloy. Thank you for taking my questions. So with enrollment now complete for the STAR T trial and top line data set to be announced by the end Speaker 100:38:52of the year, What type Speaker 1000:38:53of data are you specifically anticipating in order to submit your regulatory submissions to both the FDA and Health Canada? Speaker 200:39:03Thank you, Laura. Mikas and Irina, would you like to take that? Speaker 1100:39:09Yes, I can take that. Speaker 300:39:13We Speaker 1100:39:15consider that At this point, we don't know the results of clinical study, STAT T. But It is randomized controlled study and data is blinded until the final analysis would be completed. This data would be sufficient to support regulatory filing in United States and in Canada. This data also might be used in some other territories, but at this point, the United States and Canada would Speaker 200:39:59And maybe, Mike, if you can talk about the Mike, if maybe you could talk about the primary endpoint and some of the secondary endpoints as well. Speaker 500:40:10Sure. Thanks for the question. So I think like with any regulatory review, the agency will Have to perform a benefit risk analysis for this proposed new intervention. So the start team is designed to provide all that information. So first of all, the safety, and we already talked about this on this call. Speaker 500:40:33We had some Interim reviews and we'll have a final review as well. So safety will certainly be supported by the data for STAR T For the necessary review by the agency, for efficacy, we are looking at 2 specific things in Startea. First of all, we want to establish the mechanism of action. So we're looking for the drug removal of the drug to actually be validated In vivo, we're going to be measuring the levels of the drug before surgery and after surgery. That's actually the key secondary endpoint of the trial To show that the drug is effectively removed from circulation compared to the control arm when the device is not used. Speaker 500:41:14The second piece of the efficacy, which is actually the primary endpoint of the trial, is a composite endpoint looking at various events that constitute bleeding, So we're measuring things like transfusions, we're measuring things like the amount of blood that comes out of the chest After the operation, and that will give us a picture of the overall bleeding rates between the intravation arm and the control arm. So I think the overall information from the STAR T trial will be sufficient to for the agency to review To come up with the benefit risk analysis necessary during this process. Speaker 1000:41:54Understood. And may you also go over the joint marketing agreement that you entered with HuMedix and the Alimax diagnostic tool? And then what might you expect in terms of increased customer awareness and use for both of the products involved? Speaker 200:42:11Yes. Chris, why don't you take that one? Speaker 1200:42:14Yes. Thank you, Phil. Speaker 600:42:16Yes, thank you Thank you for Speaker 1200:42:17the question. As Phil had mentioned, Umedix has a really innovative non invasive liver function test. And Basically, what it helps physicians do is to assess how much liver function a patient may have. And They got their start with pre surgical planning, but I think ideally what we hope to do is to leverage the test and as Phil had mentioned, use this as a diagnostic test to help stratify and identify the right patients who would Ultimately be best suited for our treatment. So that's I would categorize that as maybe Near a mid to later objective of the partnership. Speaker 1200:43:04But today, We're leveraging the commercial organizations to get in front of key customers for our product, Customers like hepatologists, hepatic surgeons and others. And I think the real near term benefit of this is that the partnership Be valuable because it will help introduce us to customers who may not yet be familiar with CytoSorb, but could be Good buyers of the product. So I think this is just another way for us to accelerate our commercial efforts in the field of liver therapy. Speaker 1000:43:43Got it. Thank you for taking the questions. Operator00:43:47One moment for our next question. And our next question will come from Sean Lee of H. C. Wainwright. Your line is open. Speaker 1300:44:00Good afternoon, guys, and thanks for taking my questions. My first one is on the U. S. Market, There's a U. S. Speaker 1300:44:08Market for drug swap ATR. So you mentioned currently a $250,000,000 opportunity. So I was wondering How many of these cardiac surgeries per year that are using ticlabor, new patients using ticlabor that you believe Could be benefit from drugstore ATR. Speaker 200:44:31Thanks, Sean. Mikus, would you like to take that one? Speaker 500:44:38Sure. So what Phil showed you today is that These acute coronary treatment syndrome patients, which is about 1,000,000 or more admissions as such in the U. S. Every year, Require the use of antiplatelet drugs, aspirin is 1, but they also require 1 of these PTY12 inhibitors. The position of ticaglobal within that marketplace is constantly improving based on the very good efficacy data, especially over Plavix. Speaker 500:45:10So the numbers of patients on Pacaglod have been growing over the past few years, and we believe that trend will continue To go up with the generic availability of the drug and obviously, hopefully, potentially the availability of drug Zoroark. So from all those patients, about 100,000 of them out of this 1,000,000, about 10% when they present with ACS will require surgery. And that surgery takes place in the hospital. These are not patients that are stable enough to be sent home, to be allowed to stop The drugs and then come back for surgery without risk of bleeding. They are staying in the hospital being monitored and currently these hospitals are waiting, Waiting multiple days until they can be operated. Speaker 500:45:56The amount of patients from those 100,000 that are on ticagrelor, We estimate, like I said before, we have estimated in the past that the market share for tachyder was approximately half of that market, and may potentially grow even more in the future. So, that those are the assumptions behind the number that Phil has quoted it previously about the total addressable market with this device. So just So to summarize, about 10% of patients presenting with acute coronary syndrome need to go to surgery. These patients are on and aspirin, dual antiplatelet therapy and the percentage of tachygo patients within that population is high and will continue to grow, we believe, Speaker 1300:46:45Great. Thank you. Thank you for that. My second question is on your Commercial planning in the U. S. Speaker 1300:46:52And Canada. So you mentioned that you expect to start building out a direct sales team Starting next year, so I was wondering, would you be pursuing entirely through direct sales or a hybrid model where You have some direct sales territories and some distributors. And in terms of personnel, what's The size of the sales team that you're looking at? Speaker 200:47:19Yes. Vince, would you like to cover that? Speaker 700:47:22Sure. Thanks, Sean, for the question. So we do plan to do a hybrid model, Sean. We have some good distributors from the COVID EUA program that actually are specialists In cardiopulmonary bypass equipment. And so we will combine that with direct sales force of about 19 people. Speaker 700:47:48I think with the distributors, they have the established relationships. And so we would obviously leverage their Rolodex to get into those counts quickly to establish the use of drug sorbate r. And then in the rest of country, We will go in with a direct sales force and that will be roughly about 19 people. Does that answer your question? Speaker 200:48:13Exactly. I think the other thing to note is that at the price points that we're talking about in the United States, We've talked about a number of about $5,000 per cartridge compared to $1,000 for CytoSorb in the European Union. Our product gross margins for DrugServe ATR are expected to be well above 90%. So with a highly profitable high margin disposable device such as DrugServe ATR, the payback on sales of that product It's very quick. And I think I was telling someone the other day that We have a lot of experience in terms of commercialization experience based upon our what we've been doing in Europe. Speaker 200:49:03We again have Been in the market for now 11 years with CytoSorb and have a full fledged, fully operational sales and marketing commercialization team that As a gamut of sales and marketing folks, but also product support, clinical support, clinical and medical affairs and Application specialists, customer service, etcetera, etcetera. We look to replicate that here in the United States and Know how to do this cost effectively, and so are looking forward to the opportunity to do that here in the U. S. Speaker 1300:49:44Great. That's very helpful. And thanks again for taking my questions. Speaker 1100:49:48Again, if you do have I'm sorry. Thanks. Operator00:50:00Our next question will come from Tom Kerr of Zacks SCR. Your line is open. Speaker 500:50:07Hi, guys. I think most Speaker 1400:50:09of my questions have been asked. Just a couple of quick ones and some financial ones. You guys don't talk about those programs under development much anymore. Any comment on that, the hemodafen and the contrast and that sort of stuff? Are you still working on those efforts? Speaker 200:50:28Absolutely. The HemoDefend BGA program is The beneficiary of more than $15,000,000 in government grant funding, particularly from the Department of Defense. It is a priority actually for our R and D program The work that we're doing on CytoSorb and other key programs, and it is well funded. And so if you've seen a lot of the press releases we put out on these technologies, We have funding to really bring it to clinical studies and potentially even commercialization. So, we are active on that. Speaker 200:51:07I think we're making some outstanding progress. We are looking to address multiple different markets, including military markets, including civilian transfusion markets as well as plasma processing markets With our technology because we believe that universal plasma has a place in each of those verticals. We really look forward to the day when a bag of freeze dried universal plasma is on every or multiple bags of freeze dried plasma In every ambulance, for example, in the world, given that plasma is a life saving product with Lots of beneficial components in it such as coagulation factors and other things that are very useful for trauma patients And are much better at resuscitating patients than what they're using today, which is simple saline. And so you can imagine how large this opportunity could be worldwide. And it's one of the reasons why we're very excited about that program. Speaker 200:52:12We don't talk about it much, but be very clear that we are making some nice progress. Speaker 1400:52:19Okay, great. A couple of quick financial questions. The burn rate expected to remain around 4,500,000 So you guys stated in the press release, you're funded through 2023, but you have substantially more liquidity than that. Just trying to get that out and figure that out. Speaker 200:52:42Kathy, did you want to address that? Speaker 300:52:46Yes, I'll take that. Thanks, Phil, and thank you for the question. So our cash burn moving forward is estimated to be Around $4,000,000 a quarter. That's just what we're expecting As we move into 20 out of 2023 and into 2024, of course, Beginning with when we begin to have sales in the U. S. Speaker 300:53:13Of DrugSorb ATR, Phil already mentioned that it's a very quick payback, And it is and we're targeting average selling prices of around $5,000 versus the $1,000 that we sell CytoSorb 4 currently. So what are now up to 80% gross margins will be very high 90% Gross margins on those products, so they'll be very profitable. We do have an ATM in place. We do have the ability Speaker 1400:53:55Okay. I think I understand, but it seems like with that amount of liquidity and a $4,000,000 burn rate, you'd be funded beyond 2023 instead of through 2023. Maybe I'm reading into that too much. Speaker 300:54:08No, you're reading it right. It will be beyond 2023. Speaker 1400:54:13Okay. That's all I have for today. Thanks. Speaker 200:54:18Thanks, Tom. Operator00:54:19Thank you. Speaker 200:54:23Well, if there are no okay, operator, sorry. Operator00:54:27I'm sorry, there are no further questions. I'd like Turn the call back to you, Phil, for closing remarks. Speaker 200:54:33Thank you, Tanya. Well, thank you everyone for joining the call today and a special thanks to the analysts who asked Some excellent questions. If you do have any other questions, please feel free to reach out to Kathy Block This week at kblockcytosorbents.com or me at pchanscytosorbents.com and we'll reply to your questions where possible. We look forward to our next quarterly call. Thank you everyone very much. Speaker 200:54:59Have a great evening. Operator00:55:01Thank you. That concludes our conference for today. I'd like to thank everyone for theirRead morePowered by Conference Call Audio Live Call not available Earnings Conference CallCytosorbents Q2 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Cytosorbents Earnings HeadlinesCytoSorbents gets $1.7M from New Jersey business tax certificate transfer programApril 21 at 6:27 PM | msn.comCytoSorbents Receives Approximately $1.7 Million from the New Jersey Business Tax Certificate Transfer ProgramApril 21 at 7:00 AM | prnewswire.com$2 Trillion Disappears Because of Fed's Secretive New Move$2 trillion has disappeared from the US government's books. The reason why is a new, secretive move being carried out by the Fed that has nothing to do with lowering or raising interest rates... but could soon have an enormous impact on your wealth.April 24, 2025 | Stansberry Research (Ad)CytoSorbents Appoints Melanie Grossman, CPA as Vice President and Corporate ControllerApril 17, 2025 | prnewswire.comCytoSorbents Appoints Thomas Shannon as Vice President of Marketing for North AmericaApril 14, 2025 | prnewswire.comCTSO: CytoSorbents Reports 4th quarter and 2024 Financial Results Which Showed Impressive Product Revenue Growth That Exceeded Our Expectations.April 4, 2025 | finance.yahoo.comSee More Cytosorbents Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Cytosorbents? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Cytosorbents and other key companies, straight to your email. Email Address About CytosorbentsCytosorbents (NASDAQ:CTSO) engages in the research, development, and commercialization of medical devices with its blood purification technology platform incorporating a proprietary adsorbent and porous polymer technology in the United States, Germany, and internationally. Its flagship product is CytoSorb, an extracorporeal cytokine adsorber for adjunctive therapy in the treatment of sepsis, adjunctive therapy in other critical care applications, prevention, and treatment of perioperative complications, and maintaining or enhancing the quality of solid organs harvested from donors for organ transplant; and offers VetResQ, a device for adjunctive therapy in the treatment of sepsis, pancreatitis, and other critical illnesses in animals. The company also develops CytoSorb-XL, a device for adjunctive therapy in the treatment of sepsis and other critical illnesses; HemoDefend blood purification technology platform to reduce contaminants in the blood supply that can cause transfusion reactions or disease when administering blood and blood products to patients, and removal of anti-A and anti-B blood group antibodies from whole blood and plasma; K+ontrol for treatment of severe hyperkalemia in patients with life-threatening conditions; and ContrastSorb for the removal of IV contrast in blood administered during CT imaging, an angiogram, or during a vascular interventional radiology procedure to reduce the risk of contrast-induced nephropathy. In addition, it develops BetaSorb, a device for the prevention and treatment of health complications caused by the accumulation of metabolic toxins in patients with chronic renal failure; DrugSorb, a device to remove drugs and chemicals from the blood; and DrugSorb-ATR, an antithrombotic removal system. The company was formerly known as MedaSorb Technologies Corporation and changed its name to Cytosorbents Corporation in May 2010. Cytosorbents Corporation was founded in 1997 and is headquartered in Princeton, New Jersey.View Cytosorbents ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Amazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InCan IBM’s Q1 Earnings Spark a Breakout for the Stock?Genuine Parts: Solid Earnings But Economic Uncertainties RemainBreaking Down Taiwan Semiconductor's Earnings and Future UpsideArcher Aviation Unveils NYC Network Ahead of Key Earnings Report Upcoming Earnings AbbVie (4/25/2025)AON (4/25/2025)Colgate-Palmolive (4/25/2025)HCA Healthcare (4/25/2025)NatWest Group (4/25/2025)Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 15 speakers on the call. Operator00:00:00Afternoon, and welcome to the CytoSorbents Second Quarter 2023 Financial and Operating Results Conference Call. At this time, all participants are in a listen only mode. Following the formal remarks, we will open the call for your questions. Please be advised that the call will be recorded at the company's request. At this time, I'd like to turn the call over to our moderator, Taylor Devlin. Operator00:00:21Please go ahead, Taylor. Speaker 100:00:25Thank you, and good afternoon. Welcome to CytoSorbents' Second Quarter 2023 Financial and Operating Results Conference Call. Joining me today from the company are Doctor. Philip Chan, Chief Executive Officer Vincent Capponi, President and Chief Operating Officer Kathleen Black, Interim Chief Financial Officer Doctor. Estemios Delhaegiris, Chief Medical Officer Doctor. Speaker 100:00:53Christian Steiner, Executive Vice President of Sales and Marketing I'm Managing Director of CytoSorbents Europe GmbH Christopher Kramer, Senior Vice President of Business Development Doctor. Irina Kulinitz, Senior Vice President of Regulatory. Before I turn the call Over to Doctor. Chan, I'd like to remind listeners that during the call, management's prepared remarks may contain forward looking statements, which are subject to risks and uncertainties. Management may make additional forward looking statements in response to your questions today. Speaker 100:01:33Therefore, the company claims protection under Safe Harbor for forward looking statements contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from results discussed today, and therefore, we refer you to a more detailed discussion Of these risks and uncertainties in the company's filing with the SEC, any projections as to the company's future performance Represented by management include estimates today as of August 1, 2023, and we assume no obligation to update these projections in the future as market conditions change. During today's call, we will have an overview presentation Covering the operating and financial highlights for Q2 of 2023 by Doctor. Chan and Ms. Block. Speaker 100:02:26Following that presentation, we will open the line to your questions during the live Q and A session with the rest of the management team. And now it's my pleasure to turn the call over to Doctor. Philip Chan. Speaker 200:02:39Thank you very much, Taylor, and good afternoon. Today, I have the pleasure of being able to update you on our most recent operational progress. We recently announced that the pivotal START T trial completed enrollment ahead of internal projections with strong performance amongst our 30 clinical centers in the United States and Canada. This followed the 2nd independent data and safety monitoring board evaluation in June on unblinded safety data on AD patients Where the DSMB recommended completion of the trial without modification. In the Q2 of 2023, We achieved total revenue of $9,400,000 including product sales of $8,100,000 versus $7,300,000 in product sales a year ago, Representing the 3rd consecutive quarter of sequential product sales growth. Speaker 200:03:29Product gross margins grew 700 basis points to 74% from 67% a year ago, and we have now exceeded 212,000 cumulative Human treatments delivered across 75 countries worldwide. We announced the appointment of Alex D'Amico as new Chief Financial Officer To start next week, August 7, 2023, Alex brings 20 years of broad finance, SEC reporting, M and A, fundraising and accounting experience to the company and our outgoing Chief Financial Officer, Kathy Block will stay on as a consultant and help to manage the transition. We also introduced Michael Batar as the new Chairman of the Board at the Annual Meeting in June. Michael has been a Board Director since 2015 and currently serves as a Founder and Partner of Quartz Advisory Group, a capital markets investment bank. Michael was also the former Managing Director of Healthcare Research at Genesys and Associates, a very large family of funds with more than 175 1,000,000,000 in assets under management. Speaker 200:04:33Last but not least, we announced the Theragnotic collaboration with Humedix. Qmedix is the manufacturer of the EU approved LiveMax liver function test that is used in liver patients to evaluate The functioning of the liver. We announced a 1 year joint marketing agreement where their sales force and ours in respect to territories We'll cross market CytoSorb as a superior extracorporeal liver support technology And LYMAX as a unique liver function test for the treatment of liver disease. As we've discussed previously, we are focused on 3 major objectives for 2023. The first is opening the U. Speaker 200:05:17S. And Canadian markets with drugSorb ATR. The second is a return to sales growth of CytoSorb and the third is to reduce our cash burn and have tight control over expenses. In terms of opening the U. S. Speaker 200:05:32And Canadian markets with drugZURP ATR, I would like to note again that drugZURP ATR and START T, Which stands for the Safe and Timely Antithrombotic Removal of Ticagrelor trial remains the core focus of our clinical efforts And the vehicle expected to open the U. S. And Canadian markets. This leverages 2 FDA breakthrough device designations for drugs or ATR to remove blood thinning medications in patients undergoing cardiac surgery. One of these breakthrough device designations is And also the second one is for the direct oral anticoagulants of which Eliquis and Xarelto are the leading ones in that category. Speaker 200:06:15In addition, following independent data safety monitoring board review of the first eighty Patients' safety data in the START T trial and recommendation to continue the trial without modifications, we are pleased to announce that START T enrollment has now completed. This helps to validate the decision to forego the interim analysis at 80 patients that we discussed on the last earnings call. And we expect that the trial to complete imminently following the last 30 day patient follow-up. We believe this sets us up for near term milestones that are rapidly approaching, which is why I have this picture of a mirror that says objects in the mirror are closer than they appear. First, we expect to get the database lock in the next several months, followed by statistical data analysis. Speaker 200:07:02This should hopefully lead to top line data targeted by year end, and if positive, regulatory submission to U. S. FDA and Health Canada to follow. We also expect to present data at a major cardiovascular conference next year. And pending visibility, we begin We plan to begin executing on our pre commercialization strategy and begin building a direct sales and marketing infrastructure in 2024. Speaker 200:07:31One thing that we really haven't discussed extensively in the past are the dynamics that may actually help expand Ticagrelor market share In the United States and Canada, but particularly in the United States. And more ticagrelor use means As we've discussed in the past, patients with acute coronary syndrome Who come into the emergency room with signs and symptoms of having a heart attack often get dual antiplatelet therapy. This consists of aspirin Plus one of the P2Y12 platelet inhibitors such as Brilinta or ticagrelor Plavix or clopidogrel Or Effient, also known as Prasigrel. Brilinta has superior antithrombotic efficacy to Plavix, Plavix is generic and cheap and BRILINTA today is still a branded drug. However, this is expected to change as BRILINTA will go generic in 2024 to become just generic ticagrelor With multiple competitors with tentatively approved abbreviated NDAs that have already been approved by the FDA, The price of ticagrelor is expected to fall, potentially enabling market share gains against clopidogrel and the more expensive branded Effion. Speaker 200:08:53A recent publication in the well respected journal JAMA Network Open highlights U. S. Prescribing physician preference For ticarilar versus other antiplatelet agents following acute coronary syndrome and percutaneous coronary intervention, in other words, For example, stent placement in more than 62,000 patients that were studied between 2010 to 2019. And what you can see in the graph in the lower right is that during that period of 2010 to 2019, ticagrelor has steadily gained in prescribing preference for physicians Following acute coronary syndrome and PCI, to the point where now or at least in 2019, 60.4% of patients who were intervened upon in the cath lab got ticagrelor or Brilinta, while the rates of Plavix prescription have been going down to only about 30% In 2019, enprasigrel is a distant third at 10 set of prescriptions, Leading the authors to conclude that tecagrelor has emerged as the most commonly prescribed P2Y12 platelet inhibitor. In addition, the approval of drugs or ATR would make ticagrelimor the only one of these antiplatelet drugs To be reversible during CABG surgery, a potentially powerful marketing advantage to take market share. Speaker 200:10:31One can imagine Given that 5% to 10% of patients are not eligible for stent placement and wind up in surgery, That being able to reverse the drug used in dual antiplatelet therapy would be an extremely valuable marketing advantage That we could confer to ticagrelor, and we believe that this will come to pass and be true. Ultimately, this sets us up For an initial market in the United States for removal of Brilinta in cardiac surgery patients of approximately 250,000,000 And if you add Canada, this increases the total addressable market to roughly $300,000,000 to 350,000,000 The numbers of patients on Brilinta Or Citegralor in the future could rise to give us an opportunity of about a $500,000,000 total addressable market. As we told you in the past, once STAR T is completed, we are looking to resume the STAR T trial, which is looking after removal of the direct oral anticoagulants, the Factor Xa inhibitors Eliquis and Xarelto. And if we are able to Add on that indication, this could double our total addressable market to $1,000,000,000 And if we can now open it up for not just cardiac surgery, But to all kinds of surgeries and also potentially being able to be used in the emergency room, we estimate that that could Again, double the total addressable market here in the United States. Speaker 200:12:12So a second major goal for the company is a return to sales growth for CytoSorb. Again, this has been the 3rd consecutive quarter of sequential product sales growth With 10% quarterly product sales growth year over year in the Q2, we're seeing continued gradual recovery of hospital markets post COVID With continued strong customer engagement and enthusiastic response to our new data and marketing strategies, our product gross margins rose 700 basis points To 74%, reflecting volume production from our new Princeton manufacturing facility, a trend consistent with prior guidance We're returning to 75% to 80% quarterly basis year. The following messages. One, that we need to be able to treat the right patient With the right timing and the right dose. And we also need to hit hard and hit early. Speaker 200:13:08And this incorporates our evolving understanding of How best to treat patients with CytoSorb. In particular, when CytoSorb is used early and aggressively in documented hyperinflamed patients, We have seen some outstanding results. This includes the recently published CTC Therapy Registry results in the journal Critical Care, Detailing the clinical outcomes in 100 critically ill COVID-nineteen patients with severe inflammation and refractory lung failure using CytoSorb with ECMO Overall, 90 day survival was high at 74%. And in the post hoc analysis, Patients who were treated before the median treatment time of 87 hours had even higher survival at 82% Compared to 66% survival in patients treated after 87 hours. In addition, those treated in the early group had significantly shorter Medium duration times on mechanical ventilation, ECMO on the In the blue lower left hand graph, mechanical ventilation in red and ICU stay in green. Speaker 200:14:21Overall, our results compare favorably to the approximately 50% survival reported by ELSO or the extracorporeal life support organization And their COVID-nineteen registry survival data where they looked at ECMO use alone in this population. Our data support the strategy of early combined use of the NASH mode to treat severe ARDS or acute respiratory distress syndrome And refractory lung failure and is a prime example of our hit early, hit heart treatment philosophy. To this end, our current company sponsored trials such as the process refractory septic shock randomized controlled trial and the International Kosmos Critical Illness Registry Incorporate our evolving understanding of how to achieve better and more consistent results with CytoSorb. We've also been working to drive earlier usage of CytoSorb in the appropriate patients through a number of different ways, including, for example, pursuing a diagnostic strategy, in other words, using a diagnostic test To guide patient selection and timing of CytoSorb therapy, as we're doing in our collaboration with Humetics in the field of liver disease, perfusion machine as we're doing with the Pure Adjust platform from Nikhiso that can run cytosorb So with that, I'd like to turn it over to Kathy to now cover financial highlights for the quarter. Speaker 200:15:50Kathy? Speaker 300:15:54Thank you, Phil, and greetings to everyone on today's call. Let's start with our first slide on 2nd quarter revenues. For the quarter ended June 30, 2023, Total revenue, which includes product sales and grant revenue, was $9,400,000 compared to total revenue of 8,500,000 In the Q2 of 2022, which is an increase of approximately 11%. Product sales for the Q2 2023 We're $8,100,000 compared to approximately $7,300,000 for the Q2 of the prior year. And our Q2 2023 product gross margins were 74% compared to 67% For the Q2 of 2022 68% in the Q1 of 2023. Speaker 300:16:52And this Predicted improvement in gross margins is expected to continue throughout the year as we fully complete all the start up activities associated with our new And continue to ramp up production. Our 2nd quarter grant revenue was $1,300,000 compared to $1,200,000 in the same quarter of the prior year. Next slide, please. For the 6 months ended June 30, 2023, total revenue With $18,900,000 an approximately 10% increase over the $17,200,000 in total revenue for the same period of 2022. First half twenty twenty three product sales were $16,000,000 compared with $15,300,000 in the same period of 2022. Speaker 300:17:44And grant revenue was $2,900,000 in the first half of 2023 compared to $1,900,000 in the prior year. Next slide, please. This next chart depicts our trailing 12 month product sales, and it's broken down into COVID-nineteen related And core non COVID-nineteen related product sales. Our core product sales of $30,100,000 In the trailing 12 month period ended June 30, 2023, they're just slightly behind core product sales of $30,700,000 In the trailing 12 month period ended June 30, 2022, this was due to the difficult market conditions, including a shortage of healthcare workers, fewer hospital beds, less surgical procedures, as well as other factors that we have discussed in prior earnings calls. As Phil mentioned, we are continuing to see improvements in the marketplace, including our sales team's ability to better access healthcare workers in the hospital and a return to face to face discussions with physicians in the market. Speaker 300:18:53Next slide, please. And this Slide shows our quarterly product sales broken down again by COVID-nineteen related and non COVID-nineteen related core product sales. And as you can see, over the past 5 quarters, there have been no COVID-nineteen related sales. The most recent three quarters Have demonstrated sequential consecutive quarter over quarter growth in product sales with $8,100,000 in quarterly sales, Q2 2023 represents the highest quarter of core non COVID-nineteen related sales since the COVID-nineteen pandemic was contained. Next slide, please. Speaker 300:19:37And I'd like to wrap up my remarks today with some comments about our cash position. As of June 30, 2023, we had approximately $14,800,000 in cash and cash equivalents, which includes $1,700,000 of restricted cash. This includes $5,000,000 of loan proceeds received from our debt facility in December 2022. And one of our key objectives For 2023 has been to reduce our cash burn and maintain tight control over expenditures, and I'd like to elaborate on our progress on this. Over the past year, we took strong actions to reduce our quarterly cash burn, such that our quarterly cash burn over the first half Of 2023 averaged approximately $4,500,000 which is down significantly From the average quarterly cash burn in the first half of twenty twenty two, which was approximately $11,000,000 We continue to maintain tight control over cash, guided by a strict 2023 operating budget, Prioritizing spend in key programs and pipeline products. Speaker 300:20:47Our spending is fully aligned with our strategic priorities, In particular, the completion of our STAR T clinical trial designed to obtain U. S. FDA marketing approval. That will conclude my remarks for today. And at this time, I would like to turn the call back to Phil for concluding comments. Speaker 200:22:22I apologize. Thank you. Yes, so thank you very much, Kathy. I apologize for that. Today CytoSorb drives our growth. Speaker 200:22:31CytoSorb forms the foundation of our company with an EU approved product that is sold around the world That has generated approximately $200,000,000 in sales since launch in more than 200,000 human treatments around the world. It is a high margin razorblade business model with industry top tier 80 plus percent blended product gross margins. And it has had strong validation by customers, partners and government agencies. With current sales that supports near breakeven, less clinical trial costs, which we believe Helps to derisk the company and the investment opportunity. We believe CytoSorb represents the fuel for strong future growth Anticipated growth targeting the $20,000,000,000 to $30,000,000,000 worldwide total addressable market of major unmet medical needs in critical care, Cardiac surgery as well as liver and kidney disease. Speaker 200:23:22And we believe this gives Platesorbents the potential upside of a biotechnology company With the lower risk profile of a high margin medical device company with sales. But soon, we believe that the story could change With CytoSorb and DrugSorb ATR representing dual growth engines for the company. We are racing to the finish of STAR T where we are rapidly nearing of the study expected imminently with top line data expected later this year. Should STAR TV successful and DrugServe ATR Achieves U. S. Speaker 200:23:56FDA and Health Canada regulatory approval, we intend to commercialize drugs of ATR in both the U. S. And Canada, A potentially major second engine of growth working in tandem with CytoSorb to drive sales. DrugSorb may open an expected initial U. S. Speaker 200:24:12And Canadian Total addressable market at $300,000,000 to $350,000,000 for Brilinta alone, which could expand should Brilinta go generic epticagrelor, where we expect significant penetration given the major unmet medical need indicated by our FDA breakthrough device designation. If successful, this could transform CytoSorbents into a dual U. S. An international growth company that current and prospective institutional and retail shareholders are excited about and have been waiting for And that can create potentially significant value. With that, that ends our formal remarks. Speaker 200:24:52Operator, please open the Q and A session. Operator00:25:17And our first question will come from Joshua Jennings of TD Cowen. Your line is open. Speaker 400:25:23Hi, good afternoon. Thanks for taking the questions and congratulations on completing the enrollment for Startea. And Kathy, congratulations on your retirement. I was hoping to just get a refresher. I apologize for this basic question, but just Phil, if you could help us remind us about the differences just in the devices, drug sorbate ATR versus CytoSorb. Speaker 400:25:47And Reason I'm asking the question is just the study, I think CytoSorb absorption during emergency cardiac operations in patients with high risk of bleeding. I believe that CytoSorbents U. S. Sorry, EU approval or CE Mark approval For the indication to remove, china thrombotic prior to cardiothoracic surgery and just with that data that's out there and trying to Kind of use that as a signal for the prospects of success for Startea. Just want to be reminded of the differences of those two devices. Speaker 200:26:23Yes. Thanks very much, Josh. So the drugstore uses an equivalent polymer technology to CytoSorb, But DrugServe HR is more of a drug removal system with bloodlines and other things that allow it to connect to The heart lung machine. So, from a technical perspective, what CytoSorb can do, So if that is helpful. Speaker 400:26:51Absolutely. And just thinking about the interim analysis and getting through Any changes in the study protocol, I mean, I think that's a clear positive signal on The safety side, but is there any, I guess, clinical signals you would put forward either from real world experience with CytoSorb For this indication in Europe or clinical data, including that study that I just referenced, I'm in terms of the efficacy side for the Star Tea data, the signals that investors should be really considering as they're Trying to analyze the potential success of the STAR*T Study. Speaker 200:27:36I can turn that over to Mikas. Mikas, would you like to handle that and I can call her. Speaker 500:27:45Thanks. Thanks, Phil, and thanks for the question. So the As Phil mentioned previously, we have announced in our last earnings call that we're going to forgo the interim analysis based On the speed of enrollment. So the fact that we completed the study so soon would not have allowed significant amount of time, Sufficient amount of time for the interim analysis to be performed. However, by foregoing that, we did not have, Not us nor the DSMB, any further insight into the efficacy side. Speaker 500:28:23And therefore, now the data remains fully blinded as they're being By the sites, they will undergo the process of being validated and cleaned, leading to database lock, as you heard earlier. And obviously, after that, we will pursue the final analysis on the top line results of the study. So until then, We only have the DSMB review on the safety information of the trial, which we already reviewed today. We had 2 of those reviews that were both Unremarkable without any findings and without any recommendations for changes in the trial. So that's a long way to tell you that as of now, the data remain blinded, But we do have the positive feedback for the safety of the study. Speaker 400:29:03No. Thanks, Ed. Sorry for misclassifying the Safety reviews as interim analysis. And then maybe lastly, just thinking about, I mean, getting a little bit ahead of myself, but Thinking about the plans for START D and potentially kicking that study off for XERALTO and Eliquis removal, I mean, will the catalyst be or I guess, if you think about the decision tree, we need to see success in Starte, And prior to thinking about or initiating the STAR*D trial. Thanks a lot. Speaker 500:29:40Okay. So let me try to respond to that one as well. So The STAR*D trial is targeting an addressable population that's even larger than the tachyglobe population. And we've seen that not just in our Literature review of the numbers that are out there by primarily from the direct feedback from the site. So we believe that the opportunity For these 2 blockbusters, Xarelto and Eliquis is even greater than for Brilinta. Speaker 500:30:07So in that regard, it's definitely an opportunity worth pursuing. In relation to STAR*D, we are now in a very good position We have the full apparatus to execute and study in place. From our clinical team, our internal clinical team, all our vendors and our partners that we're working Most importantly, the site network from STAR T. These are highly performing sites that did excellent STAR T. So we believe that STAR*D once resumed will actually be efficiently executed and be able to enroll fast. Speaker 500:30:43The results of STAR*D will be very helpful, of course, especially relating to the safety of the device since the application is very similar. As you know, The STAR*D trial is targeting the same use of the device intraoperatively for patients undergoing cardiac surgery. So there's a lot of similarities between Two trials that we've discussed previously, but more importantly now, we have the playbook, the right partners and the right sites To execute briskly the STAR*D trial. Speaker 400:31:15Excellent. Thank you very much. Operator00:31:32And our next question comes from Yansai of B. Riley. Your line is open. Speaker 600:31:38Thank you for taking my questions. Maybe I can Start with the high level question first and then I have a follow-up. So first, during your market research, Phil, can you remind us the And are using antidotes for anticoagulants such as Andexxa, precedent in the U. S. And EU. Speaker 600:31:57Thank you. Speaker 200:32:01Sure. And actually, Mike, this is an ideal question for you. Speaker 500:32:08Sure. Thank you for the question. So the use of these reversal agents That are approved in the marketplace now, specifically ondexanet that is indicated for the reversal of the drugs Before the direct oral anticoagulants like Xarelto and Eliquis is approved in the presence of severe life threatening bleeding. So Those drugs are used when somebody has suffered a life threatening bleed. The usual measures are not successful in stopping the bleeding and then they applied. Speaker 500:32:42The population that we are addressing is actually much larger populations. These are patients at risk for bleeding. So if you can imagine, these are patients who are coming in with a heart attack. They have their cardiac angiogram. They see that they need surgery, but because they received the drug, they're sitting Waiting for the drug to wash out at risk for having a second heart attack, for example, but they're not bleeding. Speaker 500:33:06So in that population, it's as of now, there are no available solutions to help them have a timely operation, a safe and timely operation. So these patients now are waiting in the hospitals for a long time. The drugs that we're referencing would only be indicated if they were bleeding. In addition, Some case reports with these drugs were used in the setting of patients heading into surgery, especially relating to Xarelto and Eliquis, the reversal agent, edexanet, Can interfere with the necessary anticoagulation that are required when people are put on their heart lung machine. So it poses also A complicating factor that may put the operation at risk and therefore are not widely used in this setting And they're certainly not approved for that application. Speaker 500:33:57The reversal agent for the bigotran, which has a very, very small piece So the pie of the market share for these anticoagulants does carry an indication that can be used because it has been studied also in people heading to cardiac surgery. Having said that, there are so few patients on this drug, again, at least in our sites, we have not experienced any of the clinical teams Using these drugs in the setting, they're all opting to just wait and let the drugs wash out, which is exactly unmet need that we believe can target By allowing the surgery to proceed, while at the same time removing the offending agent and reducing the bleeding risk. Speaker 600:34:38Yes, got it. Thank you so much for the clarification there. As a follow-up here I have is, I'm curious about the U. S. Market When you have a third party or have third party distributors, can you clarify how will you split the responsibility? Speaker 600:34:55Will you take on the responsibility of marketing and education and then they do the face to face interaction with surgeon? Thank you. Speaker 200:35:06Vince, do you want to take that? Speaker 700:35:09Sure, Phil. I'll take that. Thanks. In the U. S, we plan to use a blended approach of direct sales and distributors. Speaker 700:35:20We have some strong distributors that we developed in during the COVID period when we're selling CytoSorbents CytoSorb under the EUA, and we will use those distributors in those select regions Since they have very, very close relationships with the cardiac surgeons. And so The rest of the U. S, we intend to focus on direct sales, specifically with probably a sales force of about 19 people. Speaker 600:35:55Got it. Thank you for the clarification. Operator00:36:02One moment for our next question. And our next question will come from Christopher Campbell of Jeff Jef. Your line is open. Speaker 800:36:18Hey, thanks for taking the question. This is Chris on for Mike. I was wondering if you could elaborate a little more on the trends you're seeing in the core German market and how that's So far through Speaker 200:36:28the Q3. Yes, we thanks very much, Chris. We, Christian, would you like to comment on that? There's only so much we can say about Q3 results so far, but Christian, Feel free to try. Speaker 500:36:46Yes. Thank you. And thank Speaker 900:36:48you, Christopher, for the question. So as Chris said, we cannot obviously I'll comment on the Q3, but as you have seen already in the 1st and second quarter, there's a Significant improvement compared to last year. This is mainly because we have a much better access to the hospital And also will be, I think, carried in the next half year by a number of indications we have received over the first half. So all this together has to balance the still critical or Complicated situation in the hospitals. There are still ICU capacities blocked because there's not there's a shortage of staff And there's still less cardiovascular interventions compared to before the pandemic. Speaker 900:37:44But The charts which have been shown by Kathy show that we are already Much higher with the core business compared to the business before the pandemic, but also considering the core business during the pandemic. I think it's a stable improvement. And yes, the second half Operator00:38:25One moment for next question. And our next question will come from Jim Molloy with Alliance Global Partners. Speaker 1000:38:41Hello. This is Laura Suriel calling in for Jim Molloy. Thank you for taking my questions. So with enrollment now complete for the STAR T trial and top line data set to be announced by the end Speaker 100:38:52of the year, What type Speaker 1000:38:53of data are you specifically anticipating in order to submit your regulatory submissions to both the FDA and Health Canada? Speaker 200:39:03Thank you, Laura. Mikas and Irina, would you like to take that? Speaker 1100:39:09Yes, I can take that. Speaker 300:39:13We Speaker 1100:39:15consider that At this point, we don't know the results of clinical study, STAT T. But It is randomized controlled study and data is blinded until the final analysis would be completed. This data would be sufficient to support regulatory filing in United States and in Canada. This data also might be used in some other territories, but at this point, the United States and Canada would Speaker 200:39:59And maybe, Mike, if you can talk about the Mike, if maybe you could talk about the primary endpoint and some of the secondary endpoints as well. Speaker 500:40:10Sure. Thanks for the question. So I think like with any regulatory review, the agency will Have to perform a benefit risk analysis for this proposed new intervention. So the start team is designed to provide all that information. So first of all, the safety, and we already talked about this on this call. Speaker 500:40:33We had some Interim reviews and we'll have a final review as well. So safety will certainly be supported by the data for STAR T For the necessary review by the agency, for efficacy, we are looking at 2 specific things in Startea. First of all, we want to establish the mechanism of action. So we're looking for the drug removal of the drug to actually be validated In vivo, we're going to be measuring the levels of the drug before surgery and after surgery. That's actually the key secondary endpoint of the trial To show that the drug is effectively removed from circulation compared to the control arm when the device is not used. Speaker 500:41:14The second piece of the efficacy, which is actually the primary endpoint of the trial, is a composite endpoint looking at various events that constitute bleeding, So we're measuring things like transfusions, we're measuring things like the amount of blood that comes out of the chest After the operation, and that will give us a picture of the overall bleeding rates between the intravation arm and the control arm. So I think the overall information from the STAR T trial will be sufficient to for the agency to review To come up with the benefit risk analysis necessary during this process. Speaker 1000:41:54Understood. And may you also go over the joint marketing agreement that you entered with HuMedix and the Alimax diagnostic tool? And then what might you expect in terms of increased customer awareness and use for both of the products involved? Speaker 200:42:11Yes. Chris, why don't you take that one? Speaker 1200:42:14Yes. Thank you, Phil. Speaker 600:42:16Yes, thank you Thank you for Speaker 1200:42:17the question. As Phil had mentioned, Umedix has a really innovative non invasive liver function test. And Basically, what it helps physicians do is to assess how much liver function a patient may have. And They got their start with pre surgical planning, but I think ideally what we hope to do is to leverage the test and as Phil had mentioned, use this as a diagnostic test to help stratify and identify the right patients who would Ultimately be best suited for our treatment. So that's I would categorize that as maybe Near a mid to later objective of the partnership. Speaker 1200:43:04But today, We're leveraging the commercial organizations to get in front of key customers for our product, Customers like hepatologists, hepatic surgeons and others. And I think the real near term benefit of this is that the partnership Be valuable because it will help introduce us to customers who may not yet be familiar with CytoSorb, but could be Good buyers of the product. So I think this is just another way for us to accelerate our commercial efforts in the field of liver therapy. Speaker 1000:43:43Got it. Thank you for taking the questions. Operator00:43:47One moment for our next question. And our next question will come from Sean Lee of H. C. Wainwright. Your line is open. Speaker 1300:44:00Good afternoon, guys, and thanks for taking my questions. My first one is on the U. S. Market, There's a U. S. Speaker 1300:44:08Market for drug swap ATR. So you mentioned currently a $250,000,000 opportunity. So I was wondering How many of these cardiac surgeries per year that are using ticlabor, new patients using ticlabor that you believe Could be benefit from drugstore ATR. Speaker 200:44:31Thanks, Sean. Mikus, would you like to take that one? Speaker 500:44:38Sure. So what Phil showed you today is that These acute coronary treatment syndrome patients, which is about 1,000,000 or more admissions as such in the U. S. Every year, Require the use of antiplatelet drugs, aspirin is 1, but they also require 1 of these PTY12 inhibitors. The position of ticaglobal within that marketplace is constantly improving based on the very good efficacy data, especially over Plavix. Speaker 500:45:10So the numbers of patients on Pacaglod have been growing over the past few years, and we believe that trend will continue To go up with the generic availability of the drug and obviously, hopefully, potentially the availability of drug Zoroark. So from all those patients, about 100,000 of them out of this 1,000,000, about 10% when they present with ACS will require surgery. And that surgery takes place in the hospital. These are not patients that are stable enough to be sent home, to be allowed to stop The drugs and then come back for surgery without risk of bleeding. They are staying in the hospital being monitored and currently these hospitals are waiting, Waiting multiple days until they can be operated. Speaker 500:45:56The amount of patients from those 100,000 that are on ticagrelor, We estimate, like I said before, we have estimated in the past that the market share for tachyder was approximately half of that market, and may potentially grow even more in the future. So, that those are the assumptions behind the number that Phil has quoted it previously about the total addressable market with this device. So just So to summarize, about 10% of patients presenting with acute coronary syndrome need to go to surgery. These patients are on and aspirin, dual antiplatelet therapy and the percentage of tachygo patients within that population is high and will continue to grow, we believe, Speaker 1300:46:45Great. Thank you. Thank you for that. My second question is on your Commercial planning in the U. S. Speaker 1300:46:52And Canada. So you mentioned that you expect to start building out a direct sales team Starting next year, so I was wondering, would you be pursuing entirely through direct sales or a hybrid model where You have some direct sales territories and some distributors. And in terms of personnel, what's The size of the sales team that you're looking at? Speaker 200:47:19Yes. Vince, would you like to cover that? Speaker 700:47:22Sure. Thanks, Sean, for the question. So we do plan to do a hybrid model, Sean. We have some good distributors from the COVID EUA program that actually are specialists In cardiopulmonary bypass equipment. And so we will combine that with direct sales force of about 19 people. Speaker 700:47:48I think with the distributors, they have the established relationships. And so we would obviously leverage their Rolodex to get into those counts quickly to establish the use of drug sorbate r. And then in the rest of country, We will go in with a direct sales force and that will be roughly about 19 people. Does that answer your question? Speaker 200:48:13Exactly. I think the other thing to note is that at the price points that we're talking about in the United States, We've talked about a number of about $5,000 per cartridge compared to $1,000 for CytoSorb in the European Union. Our product gross margins for DrugServe ATR are expected to be well above 90%. So with a highly profitable high margin disposable device such as DrugServe ATR, the payback on sales of that product It's very quick. And I think I was telling someone the other day that We have a lot of experience in terms of commercialization experience based upon our what we've been doing in Europe. Speaker 200:49:03We again have Been in the market for now 11 years with CytoSorb and have a full fledged, fully operational sales and marketing commercialization team that As a gamut of sales and marketing folks, but also product support, clinical support, clinical and medical affairs and Application specialists, customer service, etcetera, etcetera. We look to replicate that here in the United States and Know how to do this cost effectively, and so are looking forward to the opportunity to do that here in the U. S. Speaker 1300:49:44Great. That's very helpful. And thanks again for taking my questions. Speaker 1100:49:48Again, if you do have I'm sorry. Thanks. Operator00:50:00Our next question will come from Tom Kerr of Zacks SCR. Your line is open. Speaker 500:50:07Hi, guys. I think most Speaker 1400:50:09of my questions have been asked. Just a couple of quick ones and some financial ones. You guys don't talk about those programs under development much anymore. Any comment on that, the hemodafen and the contrast and that sort of stuff? Are you still working on those efforts? Speaker 200:50:28Absolutely. The HemoDefend BGA program is The beneficiary of more than $15,000,000 in government grant funding, particularly from the Department of Defense. It is a priority actually for our R and D program The work that we're doing on CytoSorb and other key programs, and it is well funded. And so if you've seen a lot of the press releases we put out on these technologies, We have funding to really bring it to clinical studies and potentially even commercialization. So, we are active on that. Speaker 200:51:07I think we're making some outstanding progress. We are looking to address multiple different markets, including military markets, including civilian transfusion markets as well as plasma processing markets With our technology because we believe that universal plasma has a place in each of those verticals. We really look forward to the day when a bag of freeze dried universal plasma is on every or multiple bags of freeze dried plasma In every ambulance, for example, in the world, given that plasma is a life saving product with Lots of beneficial components in it such as coagulation factors and other things that are very useful for trauma patients And are much better at resuscitating patients than what they're using today, which is simple saline. And so you can imagine how large this opportunity could be worldwide. And it's one of the reasons why we're very excited about that program. Speaker 200:52:12We don't talk about it much, but be very clear that we are making some nice progress. Speaker 1400:52:19Okay, great. A couple of quick financial questions. The burn rate expected to remain around 4,500,000 So you guys stated in the press release, you're funded through 2023, but you have substantially more liquidity than that. Just trying to get that out and figure that out. Speaker 200:52:42Kathy, did you want to address that? Speaker 300:52:46Yes, I'll take that. Thanks, Phil, and thank you for the question. So our cash burn moving forward is estimated to be Around $4,000,000 a quarter. That's just what we're expecting As we move into 20 out of 2023 and into 2024, of course, Beginning with when we begin to have sales in the U. S. Speaker 300:53:13Of DrugSorb ATR, Phil already mentioned that it's a very quick payback, And it is and we're targeting average selling prices of around $5,000 versus the $1,000 that we sell CytoSorb 4 currently. So what are now up to 80% gross margins will be very high 90% Gross margins on those products, so they'll be very profitable. We do have an ATM in place. We do have the ability Speaker 1400:53:55Okay. I think I understand, but it seems like with that amount of liquidity and a $4,000,000 burn rate, you'd be funded beyond 2023 instead of through 2023. Maybe I'm reading into that too much. Speaker 300:54:08No, you're reading it right. It will be beyond 2023. Speaker 1400:54:13Okay. That's all I have for today. Thanks. Speaker 200:54:18Thanks, Tom. Operator00:54:19Thank you. Speaker 200:54:23Well, if there are no okay, operator, sorry. Operator00:54:27I'm sorry, there are no further questions. I'd like Turn the call back to you, Phil, for closing remarks. Speaker 200:54:33Thank you, Tanya. Well, thank you everyone for joining the call today and a special thanks to the analysts who asked Some excellent questions. If you do have any other questions, please feel free to reach out to Kathy Block This week at kblockcytosorbents.com or me at pchanscytosorbents.com and we'll reply to your questions where possible. We look forward to our next quarterly call. Thank you everyone very much. Speaker 200:54:59Have a great evening. Operator00:55:01Thank you. That concludes our conference for today. I'd like to thank everyone for theirRead morePowered by