The company reported 2016 revenue of $9.6mln, compared to $4.7mln the previous year, driven by a 103% jump in sales of its CytoSorb blood filters. The filters are used to reduce inflammation and prevent organ failure in critically-ill and cardiac surgery patients.
Most product sales were in Germany, which accounted for 61% of the total and achieved a 112% increase to $5.0mln.
Chief executive Phillip Chan said Germany is the largest device market in Europe and the third biggest in the world.
“Reorders from a broad base of existing direct customers continue to drive this growth, with many reference accounts becoming significant and one exceeding 10% of 2016 product sales,” Chan said.
CytoSorb is now distributed to 42 countries after the group added Spain, Portugal, Hungary, Czech Republic, Slovakia, Chile, Iran and Iceland, and achieved final registration of the product in Russia.
CytoSorbents is currently seeking approval from the Food and Drug Administration for the distribution of CytoSorb in the US. It has registered for the product’s second trial later this year to demonstrate the benefit of using CytoSorb during open heart surgery to reduce serious post-operative complications.
Following a successful first trial, full year research and development costs rose to $4.7mln from $3.8bn, pushing total operating expenses to $17.1mln from $11.8mln.
The increase in operating expenses meant the net loss widened to $11.9mln from $8.1mln.
In 2017, the company expects revenue growth to accelerate as it sees many of its regions follow the same trajectory as Germany.
“Based on our expectations of growth, our goal is to drive to operating profitability within the next one to two years, at product sales of approximately $20mln and rising gross margins, at which point we expect approximately 40-50 cents on every dollar in sales will drop to the bottom line,” Chan said.
Story by ProactiveInvestors