Cytosorbents (OTCBB: CTSO) has been taking care of business lately.
A recently-announced funding agreement put the company on solid footing to carry out its commercialization plans for CytoSorb in Europe, and just this week it was announced that Cytosorbents has been awarded a Phase I SBIR (Small Business Innovation Research) grant by the US Army Medical Research and Materiel Command titled, "Investigation of CytoSorb Cytokine and Myoglobin Removal in the Treatment of Trauma."
The grant is worth $100,000, although there is an option available to bring in another $50,000. The awarding of this grant is also a prerequisite for the Phase II and III levels, which could bring the total numbers received by Cytosrobents to over a million dollars.
The awarding of the grant comes after a series of events where the company showed off its technology and products, including the recently-announced HemoDefend, and highlights the military applications for this company's technology that have been discussed here before.
Although not a breath-taking amount of money rolling in from the US Army, it's the validation of technology that comes with the grant award where Cytosorbents stands to most benefit. If it leads to the awarding of the follow-on Phase II and III levels of the grant, however, it could end up bring in a significant amount of cash.
The trials funded by the grant award will also give the company a leg-up in future FDA approval applications, as the company now has its 'foot in the door' in the United States regulatory process.
It's already been a milestone year for Cytosorbents.
The company's share price has retreated from its highs of near fifty cents, but with growth, sales and exposure planned for 2012 - another milestone year could take effect.
In speaking of the potential military and civilian applications that could come from these upcoming studies, Cytosorbents' CEO Dr. Phillip Chan noted, "If we can reduce the incidence of organ failure in trauma patients using our blood purification technology to remove inflammatory mediators such as cytokines and myoglobin, we hope to improve clinical outcomes in trauma patients, not just in the military, but in hospitals worldwide."
As already discussed, CytoSorb and HemoDefend could become game-changers for their respective applications; and after already receiving a CE Mark Approval in Europe, it's a credibility boost for the company to have landed a grant from the US Army.
Not a bad close to an historic year for Cytosorbents.
Disclosure: Long CTSO.