Biostem (OTCPK:BSEM) FY Conference Transcript

Summary of BioStem Technologies FY Conference Call Company Overview - Company: BioStem Technologies (OTCPK:BSEM) - Industry: Advanced Wound Care - Market Size: The advanced wound care market is valued at $11.3 billion, with a significant portion in the wound biologic segment at $8.5 billion [2][6] Core Business and Technology - Proprietary Technology: BioStem has developed BioREtain®, a technology that enhances wound healing by retaining key growth factors [3][7] - Patent Portfolio: The company holds 55 issued patents and 53 pending patents related to its technologies [3] - Product Offerings: Currently, BioStem has five products targeting diabetic foot ulcers (DFUs), venous leg ulcers (VLUs), and pressure ulcers (PUs) [3] Financial Performance - Revenue: In 2024, BioStem reported over $300 million in top-line revenue and over $39 million in adjusted EBITDA [4] - Cash Position: As of June 30, 2025, the company had over $30 million in cash on hand [4][21] - Growth Trajectory: Revenue growth from under $16 million in 2023 to over $300 million in 2024, indicating a significant upward trend [19] Market Dynamics - Patient Demographics: There are over 7 million Medicare patients with chronic non-healing wounds, with projections indicating a 20% increase by 2030 [4][5] - Wound Types: Pressure ulcers account for 41%, diabetic foot ulcers for 30%, and venous leg ulcers for 11% of the chronic wound market [4] Clinical Trials and Research - Ongoing Studies: BioStem is conducting clinical trials for DFUs and VLUs, with results expected by the end of 2025 [8][9] - Real-World Data: The BioREtain® technology has shown a 25% reduction in the number of applications needed compared to competitor products [6] Reimbursement Landscape - Current Reimbursement: Products are currently reimbursed at approximately $1,780 in hospital outpatient settings and $860 in ambulatory surgery centers [13] - Future Changes: Anticipated changes in 2026 may lead to a flat-rate reimbursement model across all service sites, which could stabilize pricing and improve margins [13][14] Strategic Initiatives - Expansion Plans: BioStem aims to expand its commercial team and increase penetration in various healthcare settings, including the VA segment [16][22] - Product Development: The company is looking to innovate its BioREtain® process and explore strategic acquisitions to enhance its product portfolio [17] Management and Team - Leadership Changes: Recently appointed CFO Brandon Poe and marketing head Barry Hassett are expected to drive future growth [21][22] Conclusion - Market Outlook: The chronic wound care market is expected to grow, and BioStem is well-positioned to capitalize on this growth through innovative products and strategic partnerships [22][23]