PFE - Cytosorbents: Concentration Risk With Covid-19 Overexposure
- Cytosorbents has given investors +126% upside YTD on the back of top-line volumes driven by CytoSorb sales.
- Although impressive, we believe the portfolio is overexposed to Covid-19, and the concentration risk is only mitigated by pipeline movements in this segment.
- Management have guided increased manufacturing capacity for CytoSorb, which could place additional pressure on operating leverage.
- We believe that the future asset value of CytoSorb is already priced into the valuation, where we see a fair value of ~$8.80 - $9.15.
- Offsetting the concentration risk is CytoSorb's potential for penetration in cardiology, which is a higher rewarding avenue with greater longevity, in our view.
For further details see:
Cytosorbents: Concentration Risk With Covid-19 Overexposure