Cytori Therapeutics Inc. (NASDAQ:CYTX)
Cytori Therapeutics Inc. (NASDAQ:CYTX) fell 9.1% in after-hours trading following an announcement concerning a reduction in Fibrosis parameters in a scar study using its cell therapy. The study was performed as a preclinical proof of concept in partnership with the Biomedical Advanced Research and Development Authority.
Scar Study Results
During the pre-clinical trials Adipose-Derived Regenerative Cells, an active component of Cytori Therapeutics Inc. (NASDAQ:CYTX), was injected into deep partial thickness wounds in a porcine model. Six months after injection, wounds treated with ADRCs showed a significant reduction in parameters associated with hypertrophic scarring.
Some of the parameters improved by Cytori Therapeutics Inc. (NASDAQ:CYTX) cell therapy include skin hardness, organization, vascularity and discoloration. Impressed by the results, the therapeutics company plans to carry out a RELIEF trial to assess the therapy in human patients with substantial thermal burn injury. The trial will also evaluate several scar-related parameters.
Treatment of thermal burns is a critical unmet medical need as patients often suffer from pain, scarring and skin contracture on using standard care.
Fibrosis is a common factor in both burns and scleroderma.” said Dr. John Fraser, Chief Scientist at Cytori Therapeutics Inc. (NASDAQ:CYTX). “This preclinical study is consistent with a number of emerging studies indicating a beneficial effect of Cytori ADRC technology in fibrotic disease.”
CYTX Stock Performance
Cytori Therapeutics Inc. (NASDAQ:CYTX) is currently trading in a downtrend, after reporting a third-quarter net loss that appears to have spooked investors. The therapeutics company focused on regenerative and oncologic therapies has underperformed the overall industry this year. The stock is down by more than 70% as it continues to trade near its 52-week low of $0.28 a share.
Investor confidence in the stock has taken a hit on the company reporting revenues of $1.8 million for the third quarter, down from $2.6 million reported last year. Revenue for the first nine months of the year also dropped to $4.9 million from $8.4 million as of last year.
Net loss for the three months ended September 30, 2017, dropped to (-$4.8) million or (-$0.14) a share, compared to (-$5.4) million or (-$0.26) a share reported last year. Cash burn in the quarter stood at $4 million compared to $4.6 million. Cytori Therapeutics Inc. (NASDAQ:CYTX) expects the cash burn for the full year to be slightly lower at between $17 million and $19 million compared to $20 and $23 million as of last year.
Cytori Therapeutics Inc. (NASDAQ:CYTX) plans to pursue a meeting with the U.S. Food and Drug Administration to determine the next step required for regulatory approval of Habeo Cell Therapy for scleroderma-associated hand dysfunction. The company also plans to begin patient enrollment for RELIEF burn clinical trial.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.