IOSTEM TECHNOLOGIES INC. (BSEM): AN EMERGING COMPANY IN THE MEDTECH SPACE HAS SEEN RECORD REVENUES IN 2024 AND CARRIES A $35.50 ZACKS PRICE TARGET!
Greetings,
The MedTech sector is often overlooked but is just as innovative as many of the top tech names.
Despite uncertainty around the Trump administration, tariffs, and economic concerns, the healthcare sector has been striving in 2025. Healthcare companies are often considered a defensive play in uncertain times. Despite economic downturns, consumers are still spending on healthcare.
The Centers for Medicare and Medicaid Services estimates U.S. health care spending will grow 5.6% annually through 2032, providing excellent long-term investment opportunities as the baby boomer generation ages.
The global medical device industry is a big part of healthcare and stands to experience substantial growth in the future. The question now is who will win?
Two massive multi-billion-dollar markets for its regenerative therapies has positioned BioStem Technologies Inc. (OTC: BSEM) as one of the top medtech stocks to keep an eye on!
Who is BSEM?
Emerging MedTech company BioStem Technologies, Inc. (OTC: BSEM) is making waves for its focus on harnessing elements of perinatal tissue derived from the human placenta for manufacturing structural tissue allografts to heal wounds.
With a 52-week high of $28.26, the company is a leading innovator focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of allografts for regenerative therapies.
The company states its mission is "to discover, develop and produce the most effective regenerative medicine products in the world," and we believe that the company is well on its way to achieving that goal—providing to investors what we believe is an opportunity to invest in a company that is both providing a vital service to the human population and providing economic value to shareholders when doing so.
BSEM is focused on the diabetic wound care market and the surgical wound care market.
2023 was a pivotal year for BSEM and 2024 was a year for record revenues. The last couple of years of success have established a solid foundation for the company's future expansion, which now includes a potential uplisting to a senior stock exchange!
The company is capturing Wall Street's attention as its share price has risen from around $1 in July of 2023 to as high as $7.00 by year-end. By the end of 2024, shares were nearly $30 a share.
Zack's Small Cap Research has a $35.50 price target on shares!
What has Zack's SCR had to say?
"The company continues to show tremendous growth that is beating even our most optimistic projections. Management released preliminary quarterly and full year 2024 results that bested estimates, with revenues coming in at $102.9 million for the fourth quarter, which resulted in net income of $0.94 per share. The company also posted gross margins of 97% for the quarter and 95% for the year—extremely impressive profitability. The company also noted that cash on the balance sheet at the end of year had grown to $28.2 million. Management also noted that full financial results should be available soon as the company is working through revenue recognition issues with the SEC as part of the uplisting process BSEM is going through with the NASDAQ."
Revenues are Jumping
The company continues to show tremendous growth that is beating even our most optimistic projections. Management released preliminary quarterly and full year 2024 results that bested estimates, with revenues coming in at $102.9 million for the fourth quarter, which resulted in net income of $0.94 per share. The company also posted gross margins of 97% for the quarter and 95% for the year—extremely impressive profitability. The company also noted that cash on the balance sheet at the end of year had grown to $28.2 million. Management also noted that full financial results should be available soon as the company is working through revenue recognition issues with the SEC as part of the uplisting process BSEM is going through with the NASDAQ.
2024 Preliminary Fourth Quarter and Year End Results:
- Fourth quarter net revenue is expected to be approximately $102.9 million, which represents a 794% increase over the fourth quarter of 2023, driven by solid performance across the product portfolio.
- Full-year 2024 net revenue is expected to be approximately $301.8 million, up from $16.7 million for fiscal year 2023, reflecting an increase of $285.1 million, or 1,702%.
- Fourth quarter gross profit is expected to be approximately $99.3 million, compared to $10.9 million for the fourth quarter of 2023, which represents an 811% increase.
- Full-year 2024 gross profit is expected to be approximately $288.1 million, compared to $15.4 million for fiscal year 2023, which represents an 1,775% increase.
- This exceptional year-over-year growth reflects the robust adoption of AmnioWrap2 OneView™ in the post-acute care market and the successful introduction of Vendaje AC®, supported by the targeted commercial strategies of Venture Medical, LLC ("Venture"), BioStem's exclusive sales and marketing partner. Leveraging the advanced analytics and market insights provided by the Venture OneView™ platform, BioStem has effectively expanded its market presence, driving accelerated product adoption and strengthening its position as a leader in advanced wound care solutions.
- The company's success has been further catalyzed by its valued partnership with Venture and their state-of-the-art Venture OneView™ platform, which has revolutionized BSEM's distribution capabilities, enhanced visibility within the market, and accelerated product adoption. This synergy exemplifies the power of collaboration in driving impactful results.
"2024 has been an extraordinary and transformative year for BioStem, defined by record-breaking growth and a series of groundbreaking milestones that underscore our leadership in advanced wound care. Achieving over 1,700% year-over-year revenue growth is a testament to the relentless execution of our strategic initiatives, the innovation behind our products like AmnioWrap2™ and the newly-launched Vendaje AC®, and the dedication of our team. - Jason Matuszewski, CEO
The medtech arena is not the easiest to navigate given how many kinds of companies are in it. It's all about finding emerging players like BSEM who have successfully navigated the regulatory process (a real barrier to entry) and show real growth.
BioStem Technologies, Inc. is growing fast, with record revenue and profitability in 2024!
The company has continued to release positive news throughout the quarter including initiating a new study and exciting study results.
BSEM has initiated the BR-AM-DFU (BioREtain® Amniotic Membrane - Diabetic Foot Ulcers) clinical trial to evaluate Vendaje® versus standard of care for patients suffering with non-healing diabetic foot ulcers.
The BR-AM-DFU trial is a multicenter, randomized, controlled study that will enroll 60 patients with non-healing DFUs at approximately twelve sites across the United States. The study will focus on a patient population with diabetic foot ulcers (DFUs) that have adequate perfusion and no clinical signs or symptoms of infection. Weekly visits will be conducted to monitor compliance with wound care protocols and off-loading, as well as to document when wound closure is achieved. A follow-up phase will commence for all subjects that achieve complete wound closure, which is designed to measure longevity and durability of the closed wound. This follow-up will consist of a four-week period with two visits at each two-week interval.
BSEM has also released study results that showed the company's signature technology, BioREtain, showed superior performance over the traditional standard of care.
According to the company, in this study, researchers conducted a retrospective analysis to evaluate the effectiveness of a sterile, dehydrated amnion/chorion membrane processed using a proprietary method (BioREtain-AC) compared to a cohort of patients treated with standard of care measures in healing hard-to-heal diabetic foot ulcers in a real-world environment. A total of 21 subjects met the study's inclusion criteria, which included factors such as wound type, medical history, and previous treatment involving the BioREtain-AC placental membrane product. The wounds in the study were considerably larger than those typically included in randomized controlled trials, averaging nearly 14 cm², compared to an average wound size of about 5 cm² in most trials.
The study demonstrated that patients treated with BioREtain experienced an 8.53% higher probability of achieving full wound closure compared to the standard of care group after 12 weeks. For those wounds that did not achieve complete closure, the BioREtain group still showed a 93.6% improvement in expected area reduction, while the standard of care group stalled or grew larger.
A NASDAQ LISTING COULD BE AROUND THE CORNER FOR THE COMPANY!
BSEM recently announced that it has filed with the SEC to register its shares pursuant to the Securities Exchange Act of 1934, which is an important step in its plan to uplist to the Nasdaq stock exchange.
BSEM trading on the NASDAQ would open up the stock to new investors, especially on the institutional front! Start your research!
