Cytori Therapeutics Inc (NASDAQ:CYTX) has successfully received the approval of Chinese regulatory authorities, for its regenerative cell technology. The company has long been planning its post approval moves and it already has acquired the services of Lorem Vascular as the distributor. Additionally, Cytori has also been working on a treatment for CHFS and has just released its data from the 12 month preliminary analysis.
The distribution deal between Lorem and Cytori was struck in 2013 and is said to be worth $500 million. Unfortunately, the specifics of the deal are still unknown and it is not quite clear what share of the sales would Cytori be receiving. Lorem plans to market the treatment with a special focus on cardiovascular and renal conditions, as well as diabetes. The CYTX stock surged after the announcement, but failed to impress some analysts. These have since given the stock a sell rating, mainly due to its poor history, which has caused it to fall below $1.
The preliminary testing of the company’s drug, ECCS-50, have shown some promise. The trials were conducted on 12 patients, in France, under the supervision of Prof. B. Granel and Prof. G. Magalon. There was significant improvement observed in cases of Cochin Hand Function Scale, within the first six months. The data collected for the duration of twelve months was collected and has been compiled in a paper sent for publication. Cytori is yet to update the investors on its progress with the drug, but the news still failed to keep the stock aloft.
It is most likely that the history of CYTX is coming back to haunt it. Despite the company reporting an increase in revenues in the last quarter and the recent developments with its treatments, the stock continues to decline. Another reason for the swift decline can be the fact that the company is performing below average, compared to the remainder of the Biotech Industry.
Cytori Therapeutics Inc (NASDAQ:CYTX) closed at $0.94 after losing 10.47% on April 22. The company has 108.18 million shares being traded in the market, with a 52-week range of $0.36-$2.63.
