Celution System and StemSource product sales accounted for $4.5 million of the total. The company anticipates 2009 product revenues of at least $10 million. Product revenue in 2009 is anticipated to be driven primarily by European and Asia-Pacific Celution System sales to the cosmetic and reconstructive surgery and translational medicine markets. The translational medicine market consists of clinical investigators who purchase systems and consumables for access to clinical grade cells for their own sponsored studies.
Key reasons contributing to the 2009 sales forecast include: Celution System orders received in the first two months of 2009, the recent installation of a StemSource Cell Bank in Japan, 2009 sales projections from Cytori’s marketing and distribution partners and emerging customer consumable reorder trends. Revenues may also include contributions from anticipated StemSource Cell Bank orders and sales from complementary cosmetic and reconstructive surgery products to be introduced later this year.
Cytori’s marketing and distribution partnership with GE Healthcare is active and contributing to 2009 sales. This quarter, Cytori received its opening order for Celution System devices and consumables from GE Healthcare, trained their European sales force, and both companies are broadly collaborating to grow 2009 sales in key European markets.
Cytori’s preliminary and unaudited cash and cash equivalents at the end of 2008 was $12.6 million, against $11.5 million in cash and cash equivalents at the end of 2007.
Cost reductions in 2008 are mostly attributable to third and fourth quarter reductions in general and administrative and, to a lesser degree, research and development expenses.
Cytori projects continued significant reduction in total operating expenses in 2009.
2009 milestones and goals for Cytori include the following:
Exceed global Celution System and StemSource sales targets
Expand global distribution network and related sales impact
Expand Celution System product claims and reimbursement in Europe
Complete enrollment and report preliminary results from the RESTORE II breast reconstruction study
US product launch of key complementary cosmetic and reconstructive surgery products
Finalize U.S. regulatory and clinical development and regulatory strategy
Complete enrollment in cardiovascular studies (PRECISE & APOLLO)
The 2008 financial numbers are disclosed in this release as preliminary while Cytori’s management completes its review of year end results.