Any way you look at it, it is most likely the world will be a different place once some sense of normality resumes following the global battle against coronavirus. In the new paradigm, there will also be companies riding the wave of a successful confrontation with COVID-19. Will small cap biotech Cytosorbents (CTSO) make such a list?
Bucking the trend, the healthcare company skyrocketed 70% year-to-date, on the back of a possible treatment for coronavirus.
Last week, Cytosorbents announced that its CytoSorb blood purification device has been used by healthcare providers in Italy, China, Germany and France to treat dozens of severely ill COVID-19 patients suffering from cytokine storm, acute respiratory distress syndrome (ARDS), and shock. The related conditions are the causes of death in COVID-19, and are the underlying reasons for the long ventilator periods currently overpowering Italy’s healthcare system.
CytoSorb is approved in the EU and has been recommended for blood purification in China. Despite being included in both Italy and Panama’s treatment guidelines and widely used across the globe, the treatment is not yet FDA approved in the US. Although currently provided under an expanded access program, discussions are on-going on how to improve widespread access to the treatment.
Maxim’s Jason McCarthy reiterates the important role CytoSorb can play in the fight against COVID-19: “In the US, New York is the epicenter, representing ~50% of cases, and hospitals are reporting a spike in ICU visits, and barring emergency measures (which are in the works), the stat only has ~3000 ICU beds in total, so measures to reduce the spread (such as social distancing, closing non-essential businesses) and treatments to prevent and reduce the length of ICU stays have become highly important.”
McCarthy reiterated a Buy rating on CTSO shares, along with an $8 price target, implying potential upside of 21%. (To watch McCarthy’s track record, click here)
Over the past 3 months, only two other analysts have thrown the hat in with a view on the promising coronavirus fighter. The two additional Buy ratings provide Cytosorbants with a Strong Buy consensus rating. With an average price target of $11, investors stand to take home an 81% gain, should the target be met over the next 12 months. (See Cytosorbents stock analysis on TipRanks)