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â— Cytori Therapeutics Fan Club Website
Cytori Therapeutics (CYTX) announced plans today to raise $17 million [M] from a private placement financing led by strategic partner Olympus Corp (Tokyo: 7733) in addition to select institutional investors. Net proceeds are expected to be approximately $16.4M after fees and expenses. Cytori will issue a total of 2.83M shares of common stock with 50% warrant coverage at $6.00 per unit. The warrants will be exercisable for up to a total of 1.42M shares of common stock at an exercise price of $8.50 per share. The warrants will have a five year term and will be exercisable no sooner than six months following the closing of this transaction. Olympus, as the lead investor, will purchase 1M shares and warrants exercisable for up to an additional 500,000 shares.
Cytori also announced 2Q08 operating results, which included product revenue of $1.4M from the Company's cosmetic and reconstructive surgery [CRS] business -- including the Celution System, related single procedure consumables, surgical instruments, and a proprietary enzyme solution. Cytori also received orders late in 2Q08 for an additional $0.9M in CRS-related products, which will be shipped and likely recognized during 3Q08. Since the end of 2Q08, Cytori entered purchase commitments for two StemSource Cell Banks for an aggregate purchase price in excess of $2.5M, which are expected to be installed during 2H08. Total operating expenses for 2Q08 were $9.1M versus $8.2M in the year-ago period, reflecting increased sales and marketing to support commercialization activity offset by a decline in general and administrative expenses. Cytori ended 2Q08 with cash/equivalents and accounts receivable of $6.4M and expects to realize about $16.4M from the private placement announced today.
Cytori expects significant sales growth for the rest of this year due to strong demand for the StemSource Cell Bank, Celution System, and related consumables in the European and Asia Pacific CRS market. The Company affirmed its $10 - $12M revenue guidance for 2008. Cytori initiated its Celution System post-marketing study in Europe, RESTORE II, for breast reconstruction following partial mastectomy during 2Q08 in order to support reimbursement and to provide additional clinical data. Patient enrollment has started, and several patients have already been enrolled at clinical trial centers. In addition, the Company was informed that enrollment in an independent investigator-initiated Celution System study in Japan for breast augmentation was completed. Early results from the first three patients show that an increase in breast volume was maintained at three months.
The Company also entered into its first two purchase commitments during 3Q08 for StemSource Cell Banks, with the first sale going to a leading cell banking company in Europe, BioHellenika, and a second purchase commitment with a medical group in Singapore. Cytori has also recently expanded its commercialization partnership with Green Hospital Supply, who will market the cell banking product in Korea, Taiwan and Thailand, in addition to Japan. Cytori was issued a key patent in June 2008, which Cytori believes provides market protection for commercialization of the Celution System in the United States. The newly issued patent specifically protects Cytori's device technology that processes adipose tissue to obtain a diverse and mixed population of cells. The Company's intellectual property position was bolstered by its receipt of a Notice of Allowance in July 2008 from the USPTO for a patent application that covers methods of creating a cell-enhanced graft using a closed system to process adipose-derived stem and regenerative cells. This patent is expected to specifically protect Cytori's Celution System-based devices and methods essential in novel cosmetic and reconstructive surgery procedures.
Cytori continued to enroll patients in the Company's chronic heart disease and heart attack clinical trials in Europe. To accelerate enrollment, the Company is working to open additional trial centers. In addition, Cytori formed a collaboration with the Fraunhofer Institute for Cell Therapy and Immunology to develop adipose-derived stem and regenerative cell-based treatments for ischemic stroke. The Fraunhofer Society is expected to commit $425,000 over two years in support of Cytori's already planned research and development. The goal of the collaboration is to advance adipose-derived stem and regenerative cells into clinical trials for ischemic stroke.
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CYTX:
This call was made
on 08/08/08
@ $6.62
| Rating: |
$6.62 (08/08/08)
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| Closed: |
08/15/2008
@ $7.02
(+6.04%
in
7 days)
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