GET A PIECE OF CYTONICS

Our mission is to rid the world of the pain, suffering, and reduced quality of life caused by Osteoarthritis (OA).

Cytonics is a biotechnology research and development company that specializes in developing diagnostics and therapeutics for Osteoarthritis.

This Reg CF offering is made available through StartEngine Capital, LLC. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment.

REASONS TO INVEST

the pitch


Breaking Boundaries in Osteoarthritis Care



Unveiling Cytonics: A Biotech Powerhouse Revolutionizing Osteoarthritis Care. 


Since 2006, we have been developing diagnostics and therapeutics for Osteoarthritis (OA), a debilitating joint disease that affects over 365M people worldwide and for which there are no effective treatments. Our breakthrough FACT™ biomarker test has guided thousands of patients to effective treatments by linking joint pain to cartilage damage, allowing physicians and patients to determine their best course of therapy . In 2015 we transformed the OA treatment game with our Autologous Protease Inhibitor Concentrate™ therapy (or “APIC™” for short). APIC™ leverages the therapeutic activity of a naturally occurring blood protein called Alpha-2-Macroglobulin (“A2M”) by selectively concentrating the A2M protein from patients’ own blood (autologous means obtained from self), then injecting the A2M concentrate directly into their arthritic joints. APIC™ has successfully treated over 8,000 patients to-date, and is clinical proof that our core A2M technology is a potent solution for OA.


Now, we are redefining regenerative medicine once again with the development of CYT-108, a genetically engineered variant of the naturally occurring A2M protein that we believe will be the ultimate solution to OA. Preclinical studies of CYT-108 have established its superior efficacy compared to natural A2M in addressing the root molecular causes of Osteoarthritis. If approved by the FDA, CYT-108 will be the first and only disease-modifying treatment that will address a $240 billion global market currently occupied by inferior, temporary, palliative treatments that merely mask the pain and inflammation caused by the disease. We believe we’re positioned to completely change the OA treatment landscape with CYT-108 by treating the root cause of the disease, resulting in cartilage repair, reduced pain and inflammation, and bringing lasting relief.


the problem & our solution


Pioneering a Breakthrough Solution for Joint Health and Cartilage Damage

Osteoarthritis (OA) afflicts over 365 million worldwide and is a massive burden to the global economy, yet current treatments only mask symptoms and do not bring lasting relief. Patients yearn for a solution that targets the root cause of cartilage damage, eliminating pain and restoring joint function for life. Cytonics  is on a mission to rewrite the script for OA by leveraging the power of Alpha-2-Macroglobulin (A2M), a naturally-occurring blood serum protein that plays a critical role in blood clotting. Via that same mechanism of action, it also has the remarkable ability to shield against cartilage deterioration by blocking very specific catabolic enzymes called “proteases”. By counteracting these destructive protease  enzymes, which accumulate in OA-afflicted joints and “chew” up the cartilage tissue, A2M prevents cartilage degradation and reduces joint inflammation and associated pain. A2M's comprehensive suppression of inflammatory triggers not only eases the immune system's load but also facilitates the body's autonomous healing. Although native A2M levels in the joints are too low to halt OA progression, Cytonics has demonstrated that delivering highly-concentrated A2M processed from patients’ blood directly into the joint effectively arrests the disease, providing substantial long-term and robust relief for suffering patients. 


This led to the development of our first-generation A2M therapy, called the “Autologous Protease Inhibitor Concentrate™” therapy (“APIC™”), which has successfully treated over 8,000 patients nationwide and has recently been shown effective in treating race horses. The royalty stream from APIC™ sales is a great source of non-dilutive funding for our company, but the most important feature of the therapy is that it is a testament to A2M’s ability to potently treat Osteoarthritis.



But why stop there?


Introducing CYT-108: the “super A2M” 

Emboldened by APIC™’s  clinical and commercial success, we embarked on a mission to create a “super A2M” that would overcome the limitations of relying on the naturally occurring A2M —namely, the amount of A2M varies significantly from patient-to-patient, and the therapy requires equipment and time to administer, reducing its global scalability. Named “CYT-108,” this super A2M is a genetically-engineered variant of the naturally occurring protein that can be synthesized in a lab, produced on an industrial scale, distributed globally, and made “off-the-shelf” for ease of administration. After 5 years’ of intensive and thorough experimentation, we have completed the critical preclinical experiments (data below) that allow us to proceed into a first-in-human Phase 1 clinical trial of CYT-108. We stand at this critical juncture with unbridled enthusiasm and confidence that we will demonstrate superior efficacy (up to 4x more potent than the natural A2M) and (most importantly) safety in our clinical trial participants. APIC™ has proven that A2M is an effective OA treatment. Now, we just have to prove that CYT-108 will perform even better.


Intra-articular injection of our recombinant A2M variant, CYT-108, results in reduced cartilage degradation and reduced joint membrane inflammation in subjects suffering from post-traumatic Osteoarthritis. Histopathological grading (modified OARSI scoring system) of the joint tissues reveals that treatment with  CYT-108 results in a 57% reduction in cartilage damage and a 60% reduction in joint membrane inflammation, as measured by an independent pathologist. These results indicate that CYT-108 is therapeutically active against joint tissue damage, not only protecting cartilage but reducing inflammation in arthritic joints. Taken together with the toxicology and immunogenicity data (not shown), this preliminary preclinical data indicates that CYT-108 may be a viable treatment for Osteoarthritis. Error bars +/- SEM.


Cytonics presents a unique investment opportunity fueled by cutting-edge biotechnology innovation and dual revenue streams. Through exclusive agreements with two independent manufacturers (one operating in the human market and the other in the veterinary space) we have secured over $4M in license acquisition fees and royalties through 2029, with guaranteed royalty minimums of $400,000 annually, providing stable and non-dilutive capital to fund our research and development of CYT-108. We're at the forefront of innovation with our genetically-engineered A2M variant,  the development of which is significantly de-risked by the proven success of our APIC™ treatment. 


Driven by an accomplished and seasoned team of medical doctors and PhDs, we have emerged as pioneers in regenerative medicine and have solidified our position as leaders in the industry. Dr. Gaetano Scuderi, Founder and Chairman, discovered the therapeutic potential of A2M while conducting research at Stanford Medical School before he founded Cytonics in 2006, and he brings extensive medical expertise (over 30 years as a practicing orthopedic surgeon) and academic distinction (over 45 published papers in the field of regenerative medicine) with him. Guided by Dr. Lewis Hanna, Chief Scientific Officer and former Director of R&D at Alexion, Cytonics’s research and development of CYT-108 is poised to reach its pinnacle with a successful first-in-human Phase 1 clinical trial. By integrating over 15 years’ experience as both a biomedical researcher and healthcare investment banker, Joey Bose, President & CEO, is  leading the charge through this exciting path of biotechnology R&D.


Our team is dedicated to developing the cure for Osteoarthritis once and for all, and it is with this dogged passion that we will bring relief to millions of suffering patients and give them their lives back.





THE market & our traction


Patently Impressive, Proven and Promising

The OA market is enormous. Drawing parallels from the success of rheumatoid arthritis (RA) treatments (TNF-alpha inhibitors, like Abbvie’s Humira, one of the best selling drugs of all-time) we estimate the market for a “true” disease-modifying OA treatment to be ~$240B ($40B is spent on TNF-alpha drugs x 6-fold more OA patients than RA| Source). Cytonics entered the arena with the intent of developing a universally effective solution for OA, the analog to TNF-alpha inhibitors which have effectively eradicated RA. Our Founder, Dr. Gaetano Scuderi (a fourth-degree black belt in jujitsu and respected instructor in the BJJ and MMA community), testifies to A2M's effectiveness in extending his athletic career into his 60’s (as does Royce Gracie, decorated UFC and MMA veteran), and endorsements from training partners and an expanding patient population of athletes and the elderly (and everyone in between!)  reinforce the potential of Cytonics' core technology to heal joints and transform lives.

*These testimonials may not be representative of the experience of other customers and are not a guarantee of future performance or success.


Cytonics showcases an extensive IP portfolio with 22 issued US and international patents (protecting all three of our technologies - FACT™, APIC™, and CYT-108) that solidify our competitive edge. Johnson & Johnson Development Corp. holds a significant stake (12%) in Cytonics, validating our potential and providing an avenue for acquisition once an exit is sought. Notably, many of our early investors are orthopedic surgeons, physicians, and patients who've experienced the impact of APIC™ first hand. Over 8,000 patients have had their lives changed by our APIC™ therapy, which provides critical validation of the positive preclinical data that backs CYT-108's safety and efficacy in treating Osteoarthritis. With a track record of successful funding, including over $20M raised from Family Offices, orthopedic surgeons, and equity crowdfunding (most recently  $7 million+ raised on SeedInvest), Cytonics is ready to bring on new investors to advance CYT-108 out of the laboratory and into FDA Phase 1 clinical trials. This is a pivotal juncture in our corporate trajectory, and we welcome you to join us as we transform into a clinical-stage company and cross over a substantial valuation inflection point. 

why invest


Join the Regenerative Medicine Revolution



With a dynamic blend of groundbreaking innovation, strategic partnerships, and proven traction, Cytonics is on the brink of transforming the Osteoarthritis treatment landscape. This paradigm shift will be accomplished by targeting the root causes of OA through the cartilage-protecting power of a naturally occurring blood protein called A2M. We're not just masking symptoms – we're rewriting the script for a pain-free future. Backed by an impressive base of sophisticated investors, track record of industry-advancing research, and a history of successful funding, Cytonics is positioned to disrupt the OA market and redefine the standard of care. Seize this opportunity to be part of a journey that's reshaping the landscape of regenerative medicine, bringing hope back to millions of people.


Invest today and become a driving force behind the transformation of millions of lives.





ABOUT

HEADQUARTERS
658 W. Indiantown Road
Jupiter, FL 33458

Cytonics is a biotechnology research and development company that specializes in developing diagnostics and therapeutics for Osteoarthritis.

TEAM

Gaetano Scuderi, MD
Gaetano Scuderi, MD
Founder & Chairman of the Board (Part Time)
Gaetano Scuderi, MD is the Founder and Chairman of the Board of Cytonics Corporation. Dr. Scuderi is a fellowship-trained (UCSD, San Diego, CA) spine surgeon who has practiced medicine since 1993. He was also appointed to Clinical Assistant Professor in the Department of Orthopedic Surgery of Stanford University. He graduated medical school from State University of New York (Buffalo, NY) and completed his Residency at University of Miami School of Medicine (Miami, FL). Dr. Scuderi has published over 45 scientific articles and has lectured worldwide. Dr. Scuderi currently practices orthopedic surgery in Jupiter, FL.

In addition to his clinical practice and his role with Cytonics, Dr. Scuderi is a 4th-degree black belt in Jiu-Jitsu and the founder/principal instructor of Scuderi Self Defense (Jupiter, FL). Dr. Scuderi’s love for this martial art is only surpassed by his passion for helping the sick and elderly reclaim their mobility and quality of life.

Joey Bose
Joey Bose
CEO & President (Full Time)
Mr. Bose has over 10 years’ experience in biotechnology research development and healthcare investment banking. As President of Cytonics, his primary responsibilities include coordinating capital raising efforts, initiating clinical trials for the company’s lead drug candidate (CYT-108), filing and maintaining patent protection of intellectual property, and identifying strategic buyers and out-licensing opportunities for the company. He holds a BS in Biomedical Engineering from the University of Virginia (Charlottesville, VA) and an MS in Biomedical Engineering from Johns Hopkins University (Baltimore, MD).
Lewis Hanna, PhD

Lewis Hanna, PhD

Chief Scientific Officer (Full Time)

Dr. Hanna has served as Chief Scientific Officer of Cytonics since February 2008. Dr. Hanna has over 28 years’ experience in pharmaceutical research and development, specializing in the development of recombinant protein therapies. He has extensive knowledge of protein folding, purification, formulation, large-scale production, quality, and the regulatory requirements to obtain FDA new drug approval. Until 2004, Dr. Hanna was the Director of Process Development at Alexion Pharmaceutical, and prior to that he was a Group Leader at Bristol-Myers Squibb Pharmaceutical Research Institute. He also served a Principal Research Scientist at R.W. Johnson Pharmaceutical Research Institute (Raritan, NJ) for 7 years. Dr. Hanna received his BS degree from Cairo University (Giza, Egypt), received his PhD from City University of New York (New York City, NY), and completed a postdoctoral fellowship at Cornell University (Ithaca, NY).
Phil LoGrasso, PhD

Phil LoGrasso, PhD

Director (Part Time)

Phil LoGrasso, Ph.D. joined the company’s growing Board of Directors in December of 2020. Dr. LoGrasso’s expertise in the biotechnology industry includes experience as a Program Director at the National Institute of Health (NIH), Research Fellow in drug discovery and development at Merck and Avera Pharmaceuticals, and as a senior analyst at GQG Partners (a $56B global hedge fund). Phil has spent almost three decades actively involved in forming relationships with Big Pharma, venture-backed biotech companies, academic researchers at the NIH, and biotech-focused hedge funds.
Tracy Goeken, MD

Tracy Goeken, MD

Director (Part Time)

Cytonics recently welcomed Tracy Goeken, MD to the company’s Board of Directors. As a member of the Board, Dr. Goeken will help drive the company’s direction and manage clinical trials. Dr. Goeken brings over 15 years of expertise in the biopharmaceutical industry and currently serves as the Chief Medical Officer for Linical Americas, a contract research organization that provides the full spectrum of drug development services. Prior to Linical, Dr. Goeken held positions at The Methodist Hospital Research Institute in Houston, Texas, Pharm-Olam International, Nuron Biotech, and Somahlution. During his tenure as Vice President of Clinical and Medical Affairs at Nuron Biotech Inc., the company secured $80mm in financing for the commercialization and expansion of its vaccine Meningitec.
Gordon Ramseier

Gordon Ramseier

Director (Part Time)

Mr. Ramseier is the President, co-founder and an equity member of BCI LifeSciences LLC. He has over forty years of origination and operations experience, building and commercializing new technologies. He was a Founder of The Sage Group, and has held senior level executive and board of directors positions with a number of companies in the life sciences industry, including: OncoTherapeutics, ImmuneTech Pharmaceuticals, Inc. (later Dura Pharmaceuticals), the Healthcare Industries Practice of Booz, Allen & Hamilton, G.D. Searle, and Pfizer Laboratories. Mr. Ramseier received his M.B.A. (with distinction) from the Amos Tuck School of Business Administration, Dartmouth College and his B.S. in Chemistry from Washington & Lee University.

TERMS

Cytonics
Overview
PRICE PER SHARE
$2.30
DEADLINE
Mar. 12, 2024 at 6:59 AM UTC
VALUATION
$65.79M
FUNDING GOAL
$10k - $3.26M
Breakdown
MIN INVESTMENT
$499.10
MAX INVESTMENT
$249,998.50
MIN NUMBER OF SHARES OFFERED
4,347
MAX NUMBER OF SHARES OFFERED
1,418,143
OFFERING TYPE
Equity
ASSET TYPE
Preferred Stock
SHARES OFFERED
Series C Preferred Shares

Maximum Number of Shares Offered subject to adjustment for bonus shares

Most Recent Fiscal Year-End

Prior Fiscal Year-End

Total Assets

$1,289,223

$1,093,058

Cash & Cash Equivalents

$1,166,390

$967,757

Accounts Receivable

$148,753

$217,860

Short-Term Debt

$247,817

$554,929

Long-Term Debt

$304,246

$554,929

Revenue & Sales

$405,000

$307,500

Costs of Goods Sold

$3,175,764

$3,201,383

Taxes Paid

$0

$0

Net Income

-$2,844,674

-$2,544,189

*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.

Investment Incentives & Perks*`

Reservations Bonus | 10% Bonus Shares

Reservation Holders in the Testing the Waters Page will receive 10% bonus shares.

Loyalty Bonus | 100% Bonus Shares

As you are a previous investor, you are eligible for additional bonus shares.

Flash Perks

Flash Perk 1

Invest between January 12-16 and receive 10% bonus shares.

Flash Perk 2

Invest between February 12-16 and receive 10% bonus shares.

Combo/Avid Investor Perks

Early Bronze

Invest $2,000+ within the first two weeks and receive an additional 10% of your investment in bonus shares.

Early Silver

Invest $5,000+ within the first two weeks and receive an additional 15% of your investment in bonus shares.

Early Gold

Invest $10,000+ within the first two weeks and receive an additional 20% of your investment in bonus shares.

Amount-Based Perks

Bronze | $5,000+

Invest $5,000+ and receive an additional 5% of your investment in bonus shares.

Silver | $10,000+

Invest $10,000+ and receive an additional 10% of your investment in bonus shares + 1 hour call with Joey Bose, President, and CEO.

Gold | $25,000+

Invest $25,000+ and receive an additional 15% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from.

Diamond | $50,000+

Invest $50,000+ and receive an additional 20% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + 1-hour call with CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from + free APIC treatment (our FDA-approved therapy for osteoarthritis).

Platinum | $100,000+

Invest $100,000+ and receive 25% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + 1-hour call with CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from + free APIC treatment (our FDA-approved therapy for osteoarthritis.

*In order to receive investment incentives beyond the issuance and ownership of the shares you purchased one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks and investment incentives occur when the offering is completed.

….

Crowdfunding investments made through a self-directed IRA cannot receive non-bonus share perks and investment incentives due to tax laws. The Internal Revenue Service (IRS) prohibits self-dealing transactions in which the investor receives an immediate, personal financial gain on investments owned by their retirement account. As a result, an investor must refuse those non-bonus share perks and investment incentives because they would be receiving a benefit from their IRA account.

The 10% StartEngine Owners' Bonus

Cytonics will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. Owner's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Series C Preferred Stock at $2.30 / share, you will receive 110 shares of Series C Preferred Stock, meaning you'll own 110 shares for $230. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investors eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner’s Bonus as well as the Loyalty and/or Reservations Bonus in addition to the aforementioned bonus.

Irregular Use of Proceeds

The Company might incur Irregular Use of Proceeds that may include but are not limited to the following over $10,000: Salary payments made to one’s self, a friend or relative. Any expense labeled “Administrative Expenses” not strictly for administrative purposes. Vendor payments.

NEW UPDATES

02.15.24

🎉 Bonus Shares Offer Ends Tomorrow!


🪙 Claim Your Stake

Don't miss this golden chance to boost your investment with bonus shares.

We're excited to offer 10% additional shares for investments placed before TOMORROW @ 11:30am EST!


💰 Claim Your Bonus Shares!



Appreciatively,

Joey Bose

President & CEO

02.14.24

💡 Insights and Highlights from Our Latest Webinar


🤝 Transparency & Communication

In our continuous effort to foster transparency and open dialogue, we recently hosted an insightful investor webinar that not only showcased Cytonics’ latest achievements and upcoming milestones but also provided a platform for our investors to voice their curiosities, concerns, and visions for our shared journey ahead.

The engagement and depth of the questions posed were truly reflective of the passion and commitment our investor community brings to the table. It was a reminder that at the heart of Cytonics’ innovation and progress lies a diverse group of individuals who share a common goal: to revolutionize the treatment of osteoarthritis and improve millions of lives worldwide.

This update aims to recap some of the standout moments from the Q&A session of the webinar, highlighting the inquiries that touched upon critical aspects of our operations, research, and strategic direction. We believe these discussions are not just queries but stepping stones to greater understanding and alignment with our mission. 


Let's delve into the insights gained and explore together the answers that illuminate our path forward!


❓ Q&A

What is the potential that this drug could cure arthritis? 

CYT-108 is a genetically engineered variant of the naturally occurring Alpha-2-Macroglobulin (A2M) protein found in the bloodstream. A2M plays a role in blood clotting through a mechanism called protease inhibition. We harnessed this mechanism to block the proteases that chew up the cartilage tissue. Administration of CYT-108 in high doses can almost completely eliminate the cartilage destruction, allowing the body to regenerate most, if not all, of the joint cartilage. Our preclinical data suggests that CYT-108 can reduce cartilage damage and joint inflammation by up to 80%, which is 3x more effective than the naturally occurring A2M protein!


CYT-108 (blue) is a genetically engineered variant of the naturally occurring A2M protein found in human blood. We took the A2M gene sequence and made careful modifications to the “bait region” of the protein. The bait region binds the destructive proteases (red) that chew up cartilage tissue. Our CYT-108 is 3x more effective than the natural A2M in preventing cartilage damage, and was shown to reduce cartilage damage by almost 80% in preclinical studies. Importantly, CYT-108 also reduces joint inflammation and restores the integrity of the underlying bone. This is a trifecta of efficacy that is absolutely unprecedented.

Which clinical trial phase are you presently in and when do you anticipate FDA approval? 

We are currently entering Phase 1 clinical trials. We expect the first patient to be dosed in April 2024 and the last patient to be dosed in August. Then, the patients will be monitored every 4 weeks for a total of 6 months. The Phase 1 study will complete in Q1 2025, and this dataset will be a key milestone for the company, as positive human data will lead to a strategic partnership or an Initial Public Offering (IPO) It is important to note that we do not actually plan on seeking FDA approval. Instead, our exit strategy is to take CYT-108 into human Phase 2 clinical trials and then find an acquirer (VC or Big Pharma) or list the stock in an IPO. We expect to achieve this by 2027.

Has this been considered for other types of arthritis such as rheumatoid arthritis and ankylosing spondylitis? 

CYT-108 is designed specifically for osteoarthritis, and our clinical trials are designed to investigate its effects in this disease. It may be possible that the drug works in other inflammatory diseases, but we are not currently exploring this possibility (once we have positive human clinical data we will begin expanding our project). We believe that CYT-108 may be effective in treating inflammatory lung diseases like Chronic Obstructive Pulmonary Disease (COPD) and Acute Respiratory Distress Syndrome (ARDS) due to its dual mechanism as a protease inhibitor and cytokine scavenger. We know that cytokines are responsible for creating the hyperinflammation that damages lung tissue, so CYT-108 may be able to sequester them and render the cytokines inactive. 

What is the day-to-day of running a biotech company like? 

It’s a rush! Running a biotech company is a whirlwind that blends advancing scientific research and development with business management. Daily activities include overseeing R&D projects, navigating regulatory compliance, securing funding, and managing talented teams dedicated to bringing innovative therapies from lab to market. A combination of hard skills (e.g, science and math) and soft skills (e.g., presentation) are needed, and continuous communication with stakeholders is essential for support and awareness. Each day offers a unique mix of challenges and opportunities, requiring a leader to possess scientific knowledge, strategic foresight, and business acumen to steer the company towards its goals. This multifaceted role aims to transform groundbreaking scientific discoveries into tangible medical solutions that can significantly impact human health. It is extremely difficult, but equally as rewarding. We couldn’t imagine doing anything else.

How did you derive your current valuation of $65M? 

This was tricky! Valuing early-stage private R&D companies is somewhat of an art form. We elected to use a risk-adjusted discounted cash flow model of the future revenues generated by commercializing CYT-108 to come up with an estimate of what the company is worth in its current stage. This valuation increases exponentially as we move through the FDA clinical trial process. Here’s a link to the financial model.


Are there competitive treatments on the market or coming to market? 

I believe that Sprifermin (FGF18) is the most advanced disease-modifying treatment for OA under development (by Merck) [reference]. The original research into FGF18's role in promoting cartilage formation and repair began in the late 1990s and early 2000s. FGF18 was identified as a member of the fibroblast growth factor family, which plays a crucial role in the development and repair of tissues, including cartilage. Preclinical studies demonstrated that FGF18 could stimulate chondrocyte proliferation and increase the production of extracellular matrix components, making it a promising candidate for OA therapy.

How does this Sprifermin differ from Cytonics’ CYT-108 therapy?

Our Phase 1 clinical study of CYT-108 as a treatment for primary osteoarthritis of the knee is very similar in design to the FORWARD study. CYT-108 will be delivered via intra-articular injection on days 1 and 90, and patients will be monitored out to 6 months. The primary endpoint is safety, however we will also monitor efficacy using the WOMAC scale. Now, here is how our trial differs:

  1. Instead of attempting to observe disease-modification using imaging (FORWARD measured cartilage thickness), we are going to sample patients’ blood for a cartilage degradation fragment. We would like to observe a decrease in the amount of floating cartilage degradation fragments, which would indicate a reduction in cartilage degradation. This is a highly quantitative biomarker assay.

  2. CYT-108 is not a growth factor like Sprifermin. Instead, it binds and inhibits the protease enzymes that digest cartilage tissue, acting as a “brake” on cartilage degradation. CYT-108 is not reliant on the presence of stem cells to repair cartilage damage, which could be variable between patients leading to patient-to-patient variance in efficacy.

Do you view Sprifermin as a competitive threat? 

Sprifermin is likely in Phase 3 studies, so it is further along than CYT-108 by a few years. If approved before CYT-108, then it will be the first disease-modifying drug for OA. This would be an enormous development in our industry, and I am rooting for them. This may seem counterintuitive… why in the world would I pull for a competitor? 

The answer is three-fold:

  1. The market for an OA therapy is enormous ($200B). There is more than enough to share.

  2. There will never be a panacea for OA. This disease is “multi-phenotypic,” meaning that it presents differently and has different driving mechanisms. Therefore, there will never be a single drug that eradicates the disease in all patients.

  3. Sprifermin and CYT-108 have complementary mechanisms of action: Sprifermin is the gas, stimulating cartilage generation, and CYT-108 is the brake, putting a stop to the destructive proteases that destroy the cartilage. Could you imagine how effective a combination therapy might be?


For those that could not attend, never fear. We’ve got you covered!

🎥 Here is a link to a recording of the Webinar.

🖥️ And here is the Investor Presentation.


⚡ Don’t Forget Your Flash Perks

From February 12th through the 16th, we are offering an additional 10% bonus shares.



Appreciatively,

Joey Bose

President & CEO

ALL UPDATES










REWARDS

Multiple investments in an offering cannot be combined to qualify for a larger campaign perk. Get rewarded for investing more into Cytonics.

10%

Stack Owner's Bonus & Rewards!

Members get an extra 10% shares in addition to rewards below!

Owners bonus

Owner’s Bonus

Owner’s Bonus Members earn 10% bonus shares on top of this and all eligible investments for an entire year. Not a member? Sign up at checkout ($275/year).

$499

Flash Perk 2

Invest between February 12-16 and receive 10% bonus shares

00

Days

06

Hours

32

Minutes

30

Seconds

$5,000

Bronze

Invest $5,000+ and receive an additional 5% of your investment in bonus shares.

$10,000

Silver

Invest $10,000+ and receive an additional 10% of your investment in bonus shares + 1 hour call with Joey Bose, President, and CEO.

$25,000

Gold

Invest $25,000+ and receive an additional 15% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from.

$50,000

Diamond

Invest $50,000+ and receive an additional 20% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + 1-hour call with CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from + free APIC treatment (our FDA-approved therapy for osteoarthritis).

$100,000

Platinum

Invest $100,000+ and receive 25% of your investment in bonus shares + 1-hour call with Joey Bose, President and CEO + 1-hour call with CEO + complimentary conversation with Gaetano Scuderi, MD (Founder and board-certified orthopedic surgeon) regarding any musculoskeletal ailments you or a loved one are suffering from + free APIC treatment (our FDA-approved therapy for osteoarthritis.

JOIN THE DISCUSSION













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At the close of an offering, all investors whose funds have “cleared” by this time will be included in the disbursement. At this time, each investor will receive an email from StartEngine with their Countersigned Subscription Agreement, which will serve as their proof of purchase moving forward.

Please keep in mind that a company can conduct a series of “closes” or withdrawals of funds throughout the duration of the campaign. If you are included in that withdrawal period, you will be emailed your countersigned subscription agreement and proof of purchase immediately following that withdrawal.

StartEngine assists companies in raising capital, and once the offering is closed, we are no longer involved with whether the company chooses to list shares on a secondary market, or what occurs thereafter. Therefore, StartEngine has no control or insight into your investment after the close of the live offering. In addition, we are not permitted to provide financial advice. You may want to contact a financial professional to discuss possible investment outcomes.

For Regulation Crowdfunding, investors are able to cancel their investment at any point throughout the campaign up until 48 hours before the closing of the offering. Note: If the company does a rolling close, they will post an update to their current investors, giving them the opportunity to cancel during this timeframe. If you do not cancel within this 5-day timeframe, your funds will be invested in the company, and you will no longer be able to cancel the investment. If your funds show as ‘Invested’ on your account dashboard, your investment can no longer be canceled.

For Regulation A+, StartEngine allows for a four-hour cancelation period. Once the four-hour window has passed, it is up to each company to set their own cancelation policy. You may find the company’s cancelation policy in the company’s offering circular.

Once your investment is canceled, there is a 10-day clearing period (from the date your investment was submitted). After your funds have cleared the bank, you will receive your refund within 10 business days.

Refunds that are made through ACH payments can take up to 10 business days to clear. Unfortunately, we are at the mercy of the bank, but we will do everything we can to get you your refund as soon as possible. However, every investment needs to go through the clearing process in order to get sent back to the account associated with the investment.

Both Title III (Regulation Crowdfunding) and Title IV (Reg A+) help entrepreneurs crowdfund capital investments from unaccredited and accredited investors. The differences between these regulations are related to the investor limitations, the differing amounts of money companies are permitted to raise, and differing disclosure and filing requirements. To learn more about Regulation Crowdfunding, click here, and for Regulation A+, click here.

PREVIOUSLY CROWDFUNDED
$9,311,674
MIN INVEST
$499.10
VALUATION
$65.79M

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IN MAKING AN INVESTMENT DECISION, INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE ISSUER AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. INVESTMENTS ON STARTENGINE ARE SPECULATIVE, ILLIQUID, AND INVOLVE A HIGH DEGREE OF RISK, INCLUDING THE POSSIBLE LOSS OF YOUR ENTIRE INVESTMENT.

www.StartEngine.com is a website owned and operated by StartEngine Crowdfunding, Inc. (“StartEngine”), which is neither a registered broker-dealer, investment advisor nor funding portal.
Unless indicated otherwise with respect to a particular issuer, all securities-related activity is conducted by regulated affiliates of StartEngine: StartEngine Capital LLC, a funding portal registered here with the US Securities and Exchange Commission (SEC) and here as a member of the Financial Industry Regulatory Authority (FINRA), or StartEngine Primary LLC (“SE Primary”), a broker-dealer registered with the SEC and FINRA / SIPC . You can review the background of our broker-dealer and our investment professionals on FINRA’s BrokerCheck here. StartEngine Secondary is an alternative trading system (ATS) regulated by the SEC and operated by SE Primary. SE Primary is a member of SIPC and explanatory brochures are available upon request by contacting SIPC at (202) 371-8300.

StartEngine facilitates three types of investment opportunities:

1) Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Primary, LLC (unless otherwise indicated). 2) Regulation D offerings (Rule 506(c)), which are offered only to accredited investors. These offerings are made through StartEngine Primary, LLC. 3) Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through StartEngine Capital, LLC. Some of these offerings are open to the general public, however there are important differences and risks.

Any securities offered on this website have not been recommended or approved by any federal or state securities commission or regulatory authority. StartEngine and its affiliates do not provide any investment advice or recommendation and do not provide any legal or tax advice concerning any securities. All securities listed on this site are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. StartEngine does not verify the adequacy, accuracy, or completeness of any information. Neither StartEngine nor any of its officers, directors, agents, and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy, or completeness of any information on this site or the use of information on this site. See additional general disclosures here.
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Investment opportunities posted and accessible through the site will not be offered to Canadian resident investors. Potential investors are strongly advised to consult their legal, tax and financial advisors before investing. The securities offered on this site are not offered in jurisdictions where public solicitation for offerings is not permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence.

California Investors Only – Do Not Sell My Personal Information (800-317-2200). StartEngine does not sell personal information. For all customer inquiries, please write to contact@startengine.com.
StartEngine Marketplace (“SE Marketplace”) is a website operated by StartEngine Primary, LLC (“SE Primary”), a broker-dealer that is registered with the SEC and a member of FINRA and the SIPC.

StartEngine Secondary (“SE Secondary”) is our investor trading platform. SE Secondary is an SEC-registered Alternative Trading System (ATS) operated by SE Primary that matches orders for buyers and sellers of securities. It allows investors to trade shares purchased through Regulation A+, Regulation Crowdfunding, or Regulation D for companies quoted on SE Secondary.

StartEngine Bulletin Board ("SE BB") is a bulletin board platform that advertises interest in shares of private companies that previously executed Reg CF or Reg A offerings. SE BB enables shareholders to communicate interest in potential sales of shares in private companies and investors to discover, review, and potentially invest in private companies. As a bulletin board platform, SE BB provides a venue for investors to access information about private company offerings and connect with potential sellers. SE BB is distinct and separate from SE Secondary. SE Secondary facilitates the trading of securities by matching orders between buyers and sellers and facilitating executions of trades on the platform. While a security may be displayed on the bulletin board, these securities will be subject to certain restrictions which may prevent the ability to buy and sell these securities in a timely manner, if at all. Even if a security is qualified to be displayed on the bulletin board, there is no guarantee an active trading market for the securities will ever develop, or if developed, be maintained. You should assume that you may not be able to liquidate your investment for some time or be able to pledge these shares as collateral.

The availability of company information does not indicate that the company has endorsed, supports, or otherwise participates with StartEngine. It also does not constitute an offer to provide investment advice or service. StartEngine does not (1) make any recommendations or otherwise advise on the merits or advisability of a particular investment or transaction, (2) assist in the determination of the fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

All investment opportunities on SE BB are based on indicated interest from sellers and will need to be confirmed.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative and involves a high degree of risk. It should only be considered a long-term investment. You must be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid, and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks, and you should complete your own independent due diligence regarding the investment. This includes obtaining additional information about the company, opinions, financial projections, and legal or other investment advice. Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.