Cytori Therapeutics, Inc. (USA) (CYTX)

I am green thumbing Cytori Therapuetics based on the recommendation of Jon Markman who is my favorite market analyst.

The upside on this company seems extreme based on its product line. Cytori makes products focused on the extraction of stem cells from body fat cells, reconstitution of the cells in a proprietary machine, and then their use in heart surgery and reconstructive breast surgery. Cytori's researchers have had a lot of success in using a patient's own cells as grafts in these very important applications with huge end markets. The company's procedures are approved for use in Europe and Japan, and they are just starting to be used in the United States in research and testing mode.

One procedure with huge potential is called Natural Breast Augmentation, which involves harvesting fat from a patient via liposuction, then transferring the tissue to a Celution machine for processing. The cells are then injected into breasts either for cosmetic purposes or post-mastectomy. The use of stem cells enables the fat to grow its own blood supply, thus becoming an integral part of the breast rather than a foreign lump.

CYTX's current market cap is only $193 million. Obviously, the company is worth billions if its breast reconstruction and heart surgery products continue to succeed.

They have patent protection issues regarding a central patent to the Celution System. There is a reexamination pending on what they called their "core patent" covering the Celution System.

Great news on expansion into the U.S.

Started sales in Europe and Asia, and the American market is about to follow in the near future.

For many reasons the next google or microsoft==
off the chart technology - can and will save many
lives and prevent much pain and suffering. Will be
worth billions one day.

Their stem cell concentration system has demonstrated sucess for reconstructive and cosmetic surgical proceedures and it appears to be effective in cardiac tissue repair.
Could be a huge winner

a lot of product potential and seem to be making headway towards profitability

Hot medical application

CYTX has a great product that is used for natural tissue regenration from the patients own body.

Using adispose stem cells, doctors may harvest patients own tissue instead of using controversial embryonic stem cells.

CYTX has big investment from Olympus as well as distribution deals in Europe and the US with GE.

In the long hiatus between third quarter and full year results, I'm navigating Cytori like a climber on a rock wall, endlessly searching for handholds at lower and lower entry prices looking for that sweet double on a positive catalyst or market rebound. One juicy gain will put me out of reach of my closest competitor for score leader for the time being.

Short term might be uncertain due to the current market crisis. But long term looks good.

It takes time for new tech to gain traction. If you get in in the $4 and below area youre very well suited for a long term investment in CYTX IMO.

CYTX should be able to achive profitability within a few years.

I believe the election is going to turn this thing around and we are going to see an upswing after Nov 4. ... time will tell and quickly ...

Cytori Therapeutics: The Stem Cell 'Celution' for Success
Cytori Therapeutics (CYTX) is successfully implementing the early stages of a dual device and therapeutic commercialization strategy based on its Celution System, which transforms a patient’s own fat tissue in about one hour into a regenerative cell cocktail which can be utilized for medical procedures or stored for future use. While removing a little unwanted fat from patients is a good thing in itself, Cytori also circumvents the controversy and ethical debate over embryonic stem cell research by harnessing the regenerative cells found naturally in fat tissue. The Company recorded its first product revenue during 1Q08 of $153,000 related to sales of the Celution System, in addition to receiving orders for 13 more systems and the related consumables as part of a razor/razor blade business model. During 2Q08, Cytori will recognize an additional $0.8 million from shipments already sent during the first quarter. The Company ended the first quarter of the year with $8 million cash and negligible debt on the balance sheet.

In mid-May, Cytori reported encouraging results from a clinical study being conducted in Japanusing the Company’s proprietary Celution System output of adipose-derived stem and regenerative cells for breast augmentation. Preliminary results in the first three patients demonstrated that the increased breast volume achieved in the study was retained after three months and the tissue had a natural appearance and texture. The next milestone in this study will occur in early 2009 with a nine-month follow-up, at which time volume retention and tissue softness will be measured to determine if the results persist and can be considered permanent. The study is being conducted on 20 patients as a new cosmetic surgery option for small-volume breast augmentation, with the goal of achieving both lasting and natural results. Cytori plans to develop the significant longer-term market opportunity for cardiovascular and heart disease on its own, supported by development and product revenue over the next few years. Cardiovascular procedures are expected to be priced at about $10,000 per procedure, reflecting the more invasive, acute nature of these procedures versus less invasive banking and reconstructive procedures which are expected to be priced at less than half of this amount in the $2,500 to $5,000 range per procedure.

The Company’s disruptive cell therapy and banking applications have the potential to reward investors over the long-term with potential multi-bagger gains over time as more clinical trial data leads to wider adoption and insurance reimbursement for its procedures which will translate into profits for Cytori and its investors. Over time, the stock market is likely to value Cytori more in-line or above its larger stem cell industry peers such as Geron (GERN) and Osiris Therapeutics (OSIR), which are valued at market caps of $270 million and $400 million, respectively. Since I first recommended Cytori on May 15, 2007, at The Motley Fool, the stock is up over 25% from $5.67 to its current level of $7.25 per share as of Friday's close. I believe this upward trend will continue, but would advise investors interested in the name to wait until the Company addresses its low cash position through a strategic investment, licensing deal, and/or bank financing since it is not yet profitable and short interest has more than doubled in just two weeks to over 3 million shares as of mid-July.

Cytori Therapeutics (CYTX) Relieves Funding Concern & Announces 2Q08 Operating Results

Cytori Therapeutics (CYTX) announced plans today to raise $17 million [M] from a private placement financing led by strategic partner Olympus Corp (Tokyo: 7733) in addition to select institutional investors. Net proceeds are expected to be approximately $16.4M after fees and expenses. Cytori will issue a total of 2.83M shares of common stock with 50% warrant coverage at $6.00 per unit. The warrants will be exercisable for up to a total of 1.42M shares of common stock at an exercise price of $8.50 per share. The warrants will have a five year term and will be exercisable no sooner than six months following the closing of this transaction. Olympus, as the lead investor, will purchase 1M shares and warrants exercisable for up to an additional 500,000 shares.

Cytori also announced 2Q08 operating results, which included product revenue of $1.4M from the Company's cosmetic and reconstructive surgery [CRS] business -- including the Celution System, related single procedure consumables, surgical instruments, and a proprietary enzyme solution. Cytori also received orders late in 2Q08 for an additional $0.9M in CRS-related products, which will be shipped and likely recognized during 3Q08. Since the end of 2Q08, Cytori entered purchase commitments for two StemSource Cell Banks for an aggregate purchase price in excess of $2.5M, which are expected to be installed during 2H08. Total operating expenses for 2Q08 were $9.1M versus $8.2M in the year-ago period, reflecting increased sales and marketing to support commercialization activity offset by a decline in general and administrative expenses. Cytori ended 2Q08 with cash/equivalents and accounts receivable of $6.4M and expects to realize about $16.4M from the private placement announced today.

Cytori expects significant sales growth for the rest of this year due to strong demand for the StemSource Cell Bank, Celution System, and related consumables in the European and Asia Pacific CRS market. The Company affirmed its $10 - $12M revenue guidance for 2008. Cytori initiated its Celution System post-marketing study in Europe, RESTORE II, for breast reconstruction following partial mastectomy during 2Q08 in order to support reimbursement and to provide additional clinical data. Patient enrollment has started, and several patients have already been enrolled at clinical trial centers. In addition, the Company was informed that enrollment in an independent investigator-initiated Celution System study in Japan for breast augmentation was completed. Early results from the first three patients show that an increase in breast volume was maintained at three months.

The Company also entered into its first two purchase commitments during 3Q08 for StemSource Cell Banks, with the first sale going to a leading cell banking company in Europe, BioHellenika, and a second purchase commitment with a medical group in Singapore. Cytori has also recently expanded its commercialization partnership with Green Hospital Supply, who will market the cell banking product in Korea, Taiwan and Thailand, in addition to Japan. Cytori was issued a key patent in June 2008, which Cytori believes provides market protection for commercialization of the Celution System in the United States. The newly issued patent specifically protects Cytori's device technology that processes adipose tissue to obtain a diverse and mixed population of cells. The Company's intellectual property position was bolstered by its receipt of a Notice of Allowance in July 2008 from the USPTO for a patent application that covers methods of creating a cell-enhanced graft using a closed system to process adipose-derived stem and regenerative cells. This patent is expected to specifically protect Cytori's Celution System-based devices and methods essential in novel cosmetic and reconstructive surgery procedures.

Cytori continued to enroll patients in the Company's chronic heart disease and heart attack clinical trials in Europe. To accelerate enrollment, the Company is working to open additional trial centers. In addition, Cytori formed a collaboration with the Fraunhofer Institute for Cell Therapy and Immunology to develop adipose-derived stem and regenerative cell-based treatments for ischemic stroke. The Fraunhofer Society is expected to commit $425,000 over two years in support of Cytori's already planned research and development. The goal of the collaboration is to advance adipose-derived stem and regenerative cells into clinical trials for ischemic stroke.

A regenerative cell therapy company based on proprietary Celution System which utilizes a patient's own fat tissue to produce reconstructive & regenerative therapies. Commercial model focused on EU and Japan initially followqed by the US market. Strong partners including Olympus & Green Hospital Supply provide marketing expertise and financial support.

cutting edge health, science,technologly....speculative play

Upcoming launch of non-embryonic stem cell based reconstructive surgery products in 2008-2009. I see big potential if successful.

Terrible Price/Book, I don't see the market for stem cells taking off anytime soon.

First revenue generating sales will occur this quarter.

Potential for $100 m sales and +$1/share earning for 2011.

Looking for a 10 bagger!

What a staggeringly STAGGERINGLY bad company! The numbers are absolutely obstrusive. These guys could write a book on how to lose money and it would be a best seller. Cytori has lost a whopping 52M in the last 2 years and is sitting on less than 30M cash again which will not even get them through 2008. Revenues are increasing but at a far too anemic pace to keep the stock at these levels. The book value is a heartbeat from being negative, they are at 11 times sales and will never produce a profit as far as im concerned. Perhaps we need to work on a regenerative cell that gets rid of bad companies like this one and replaces it with good biotech companies that don't waste 25-30M a year. Take the women and children outside..look away, its hideous.

Nero

Sagetrade