Cytori Therapeutics narrows Q2 loss, beats expectations
Cytori Therapeutics (Nasdaq: CYTX) reported a net loss of $4.0 million, or $0.17 per share, for the second quarter ended June 30, better than the loss of $0.40 per share anticipated by Wall Street and an improvement compared with a loss of $7.3 million, or $0.47 per share, during the same period of 2006.
The San Diego-based maker of regenerative medicine products said revenues for the second quarter were $0.51 million, an increase of 13%, compared with revenues of $0.45 million a year earlier. One analyst polled by Thomson Financial was expecting revenues of $0.3 million.
“The balance sheet has strengthened year-over-year and we expect to continue to minimize our reliance on the capital markets where possible through anticipated strategic transactions,” said CFO Mark Saad.
The company also announced that this year it will launch a breast reconstruction post-marketing study in Europe. The study is intended to test if Cytori’s Celution System, a machine that takes regenerative tissue out of fat so that it can be re-injected to repair damaged tissue, can be used breast cancer patients who have suffered a partial mastectomy.
Cytori said that it has entered into an agreement with Japanese medical equipment supplier Green Hospital Supply Inc. to commercialize the technology in the Asian country.
Celution System’s international launch is planned for 2008.
“We view 2008 as the pivotal year for Cytori,” Edward Tenthoff, senior research analyst with investment bank Piper Jaffray & Co., said in a research note released on July 31.
He warned that the company will most likely require additional funding in 2008 but maintained his “market perform” rating on the stock and set a target price of $6.
Today shares are rising, up $0.41, or 7%, to $6.36, at 12:43 p.m. ET.
