Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Cytosorbents Is Up 17% Today

By James Brumley - Jul 6, 2021 at 3:37PM

Key Points

  • Cytosorbents' DrugSorb-ATR Antithrombotic Removal device may curb the dangers linked to blood-thinning drugs for cardiopulmonary bypass patients.

Motley Fool Issues Rare “All In” Buy Alert

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The biotech company took another step toward introducing a new way of performing bypass surgeries.

What happened

Shares of Cytosorbents Corporation (CTSO -3.05%) jumped 17.3% on Tuesday, spurred higher by news that the Investigational Device Exemption (IDE) request for its DrugSorb-ATR Antithrombotic Removal system has been approved by the U.S. Food and Drug Administration, allowing clinical trials of the device to move forward.

So what

Cytosorbents' DrugSorb-ATR Antithrombotic Removal device just cleared another regulatory hurdle. Exempt from certain other steps that some medical devices must go through, the company can now begin testing the device, which allows patients undergoing heart bypass surgeries to curb the amount of blood-thinning drug ticagrelor in the bloodstream during and after the procedure. The device is to be used in conjunction with Cytosorbents' DrugSorb-ATR, which is a proprietary polymer capable of removing a variety of drugs and chemicals from the bloodstream more effectively than standard filtration technologies such as hemodialysis.

A hand drawing a rising red arrow.

Image source: Getty Images.

Now what

The FDA has not outright approved the DrugSorb-ATR Antithrombotic Removal system. The approval only exempts the device from routine steps typically taken to launch new medical devices.

Still, it's not a surprising turn of events. A little over a year ago the FDA designated the device as a "breakthrough device," unofficially acknowledging there's a medical need for such a solution.

Given the length of the required trial and prospective market size, though -- in addition to the fact that the biotech company has so other products and research and development projects under way -- Tuesday's surge isn't a reason to step in. More than anything, it's a chance for investors not committed to Cytosorbents for the long haul to get out of their position.

James Brumley has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Cytosorbents Corporation Stock Quote
Cytosorbents Corporation
CTSO
$1.91 (-3.05%) $0.06

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.