Stock Preacher

MedaSorb Technologies Corp. (OTCBB: MSBT)

MedaSorb Technologies Corp. (MSBT) engages in the development of medical device technologies focused on the treatment of sepsis and other conditions of the blood.  The Company is currently in clinical trials in the United States and Europe with its proprietary blood purification device, CytoSorb (TM).  The CytoSorb is designed to reduce “cytokine storm” associated with sepsis—a leading cause of death worldwide.

Founded in 1997, the Company is headquartered in Monmouth Junction, New Jersey.

Source: Reuters.com, SEC Filings.

Financial Summary

Analyst Consensus

No analyst rates shares of MSBT at this time.

Investment Highlights

Market Overview

The Company’s principal device, CytoSorb (TM), is designed to prevent or greatly reduce high concentrations of cytokines associated with the dangerous condition of sepsis—a bacterial infection of the blood that inflicts approximately 1 million patients in the United States and 18 million worldwide.

The device can also be used in conjunction with kidney dialysis, a treatment undertaken by 340,000 and 1.5 million patients suffering from chronic kidney disease each year in the United States and globally, respectively.  Approximately two-thirds of patients treated with dialysis are additionally treated with homodialysis.

Approval of the Food and Drug Administration (FDA) or Europe’s equivalent CE Marking of the Company’s CytoSorb could generate several billions of dollars of sales for the Company, as there is presently no reasonably competing product.  Proven efficacy and reduced mortality rates are essential for establishing standard of care in North America and Europe, which is reasonably possible for the Company’s novel device.

Lengthy inpatient durations associated with patients treated for acute sepsis are common, providing hospitals and third-party payers compelling incentive to utilize the CytoSorb, since the cost of the device is no more than the average cost of one day in an acute care facility.

Company Progress

The Company has manufactured only a few CytoSorb devices for testing purposes, including clinical trials in the United States and Europe.  The Company’s medical team believes that the CytoSorb device is unparalleled in the effective clearing of cytokines, which are not cleared effectively by today’s state-of-the-art dialysis machines.

Following approval of regulatory authorities as to the safe and effective removal of cytokines, the Company intends to explore other acute conditions related to the blood, such as complications from post-operative cardiopulmonary bypass surgery, damaged organs from donations, and blood contaminated with dangerous drugs.

In December 2006, the Company submitted to the FDA a proposal to conduct a pilot study of the device.  In the first quarter of 2007, the Company received approval to go forward with a limited five-patient study to test the device on patients afflicted with sepsis.

Management determined that proceeding with the limited trial in the United States would add approximately one year more to the process of commercialization, and therefore proceeded to obtain regulatory approval in Europe, first, before proceeding toward FDA approval for commercialization of the CytoSorb in the United States.  The Company’s strategy to market the CytoSorb in an equivalent market potential of Europe began with the submission for CE Marking in July 2007, which in October 2007 was approved by the German Central Ethics Committee for the final stage design of the initial clinical trial.

As of August 2009, the Company has enrolled more than 30 patients for CE Marking clinical trials, with additional patients expected to enroll by year-end.  Each study is completed within a week, which so far includes all 75 non-adverse effects outcomes.  Efficacy data will be released at a later date.  The Company expects to submit positive results of clinic trials sometime in the first quarter of 2010, and anticipates CE Marking approval for the CytoSorb no earlier than mid-2010.

Technical Analysis

Source: http://stockcharts.com/h-sc/ui?s=msbt

MSBT trades above its 13-day moving average. This bullish sign is significant because the 13-day moving average is trending upwardly.

The MACD for MSBT currently indicates a bullish signal.  The MACD is above the signal line, a 9-day moving average.  The MACD is above the critical level of 0, which implies that the underlying moving averages are trending higher.  Overall, the chart is bullish following a breakout at 12.5 cents.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

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