NASDAQ:CTSO
READ THE FULL CTSO RESEARCH REPORT
On January 3, 2025, CytoSorbents (NASDAQ:CTSO) reported strong preliminary 4th quarter and full year 2024 financial results which exceeded our expectations. 4th quarter product revenue (excluding grant income) is estimated to be in the range of $9.0-$9.2 million, which is approximately 22% to 25% growth compared to $7.35 million in the 4th quarter of 2023. This quarterly product revenue range also showed sequential improvement from the 3rd quarter of 2024 in which product revenues were $8.6 million. Full year 2024 product revenue (excluding grant income) is estimated to be in the range of $35.4 million to $35.6 million.
The preliminary 4th quarter product revenue estimate exceeded or matched our total revenue estimates, which includes grant income. Assuming grant income is approximately the same as the 3rd quarter of 2024 ($777,593), our 4th quarter total revenue estimate is now approximately $9.8 million.
4th quarter product gross margin is estimated to be approximately 70%, compared to 61% in the 3rd quarter of 2024 and 72% in the 4th quarter of 2023. This sequential improvement indicates the successful resolution of both a planned production slowdown to rebalance inventory and a short-term manufacturing issue which reduced product gross margins to below average levels in the 3rd quarter of 2024.
We expect this strong sales momentum to continue into 2025 and maintain our expectations of double-digit core product revenue growth for the full year. These revenue estimates do not take into account the contribution from the commercialization of DrugSorb-ATR in North American markets which could be meaningful if approved by the FDA and Health Canada in a timely manner.
We adjust our 4th quarter total revenue estimate to $9.8 million and full year total revenue growth to $38.8 million. We maintain our price target of $4.00.
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