CytoSorbents Corporation (OTC:CTSO) to Graduate from the OTC Markets

Innovative therapies are a risky bet where acceptance in the medical community and a marketing network can make or break a company. The most recent seller of futuristic healthcare, CytoSorbents Corporation (OTC:CTSO) reminded of itself at the beginning of the new year with a jump of 16% in a single trading day, probably caused by an optimistic press release.

CytoSorbents offers biopolymers used to filter patients’ blood in intensive care, and so far its therapies are slow to be made regular practice, being extremely innovative. After a lengthy development period, the company is left with a string of losses and the following current financial strengths:

• $2.06 million cash assets

• $3.2 million current assets

• $2.07 million current liabilities

• $651,980 net loss

The main risk for the company is to keep up reasonable revenues and prevent the losses from deepening. The latest bid for visibility for CytoSorbents is tomorrow’s presentation at the OneMedForum 2013 Emerging Company Finance Conference. Along with this, financial news sources suggest in 2013 the company may upgrade the exchange and move up from the OTC market to a more serious listing. We still cannot predict how this move will affect price, since pharmaceutical companies even on NASDAQ show great volatility based on their marketing success and the stage of the preliminary trials.

Currently the company’s blood filtering system is sold in Switzerland, Austria and Germany and is trying to make a breakthrough in other European Union markets. The CTSO ticker has not been promoted since March 31, and then only as a way to boost performance record for professional pumper Penny Trader Publisher. It seems the company relies more on its own products, a series of polymers for various filtering treatments, which may come to market in coming years in case of successful trials.

Medical technologies are hot among the most recent promotions in our database. Several companies use the promise of their future drug or therapy as a boost to their short-term stock price. The shares of BioMatrix Scientific Group, Inc. (PINK:BMSN) are showing a more clear-cut promotional pattern, spiking from their usual lows to more than 5 times their price and currently correcting sharply.

Whether the pharmaceutical company offers a solid or flaky proposal, it is best to estimate if you can afford the risk of loss personally, before buying any future promises from a pumper or an optimistic press release.