OTC:BSEM
READ THE FULL BSEM RESEARCH REPORT
BioStem Technologies, Inc. (OTC:BSEM) 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.
The company continues to show tremendous growth. Management released preliminary 1Q2025 financial results that showed revenue grew 73% over the year ago period to $72.5 million, while the gross profit margin increased to 99% due to the company focusing on Vendaje AC, which doesn’t have a licensing cost associated with it. The company also noted that sales and marketing costs increased, largely due to the Venture Medical agreement, which we’ve written about and believe is a good investment in growing the business even further. 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.
Management also addressed the MCS LCD issue, noting that it likely delayed some purchases in 1Q due to the uncertainty but believes those issues should subside due to the confirmation that the LCD review process is ongoing and final decisions as to what is covered are delayed until January 2026. Further delays or a decision that goes against BioStem would be headwinds for the company, but BioStem has proven it can continue to grow business and profitability in such an environment. The company continues to work hard at making sure the process is fair, and their products are understood, and we continue to believe the company will be ultimately successful in getting Vendaje AC covered, and patients will continue to have access to the superior products that many patients have enjoyed.
The company also recently announced that its proprietary amnion chorion allograft, known as BioRetain has been approved by the Institutional Review Board (IRB) for the treatment of venous leg ulcers. This follows the announcement of the publication of a peer-reviewed study showing breakthrough results regarding the application of this product for diabetic foot ulcers. BioStem continues to demonstrate that its products, including BioRetain, outperform existing products and are drawing increasing interest from doctors and patients, which is why we continue to have a very positive view on BSEM.
Given these developments and the continued robust revenue and earnings growth, and our belief that the company will be successful in its LCD coverage issue and continue to expand access to its superior wound care products, we believe the best for BSEM is still to come.
Summary
We reiterate our belief in the direction of BSEM and our strong appreciation for the way management has navigated challenges and grown the company in a smart fashion and urge investors to take a look at the stock and consider adding it to a portfolio.
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