BioStem Technologies, Inc. BSEM is a Florida-based biotechnology company focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of structural tissue allografts for use as a protective covering for soft-tissue wounds.
The year 2022 saw the company’s growth trajectory dotted with multiple achievements, delivered by a dedicated leadership team with a strong sense of purpose and a keen focus on its planned strategy.
A Look At BioStem’s Accomplishments In 2022:
BioStem’s products include three proprietary perinatal tissue allograft products for wound care, Vendaje®, Vendaje AC®, and Vendaje Optic®, which are intended for homologous use as a protective covering for soft-tissue wounds.
The company’s initial commercial strategy is heavily focused on its product being sold and reimbursed within the Medicare system.
In 2022 the company filed for Centers for Medicare & Medicaid Services (CMS) Q-codes for Vendaje AC®, for which judgment is awaited in the first quarter of 2023. Its product Vendaje® had received the Q-code award in June 2021, which had already enabled greater access for patients and providers for reimbursements through the Medicare and the CMS system, and the company expects the anticipated additional awards to further boost the acceptance of its product line resulting in increased sales in 2023.
BioStem also reports gaining product adoption and reimbursement into all Medicare Administrative Contractors (MAC) throughout all U.S. states.
The company has a total of 15 pending patents, 3 pending patents for its proprietary BioRetain® processing and in 2023 it plans to expand its product line by furthering its clinical research and further expanding its Intellectual Property portfolio.
Expansion of Leadership Team
BioStem continued to strengthen its leadership team and build a team of industry experts in 2022. In September, the company appointed its second independent board member and chair of the audit committee Brandon Poe –- an accomplished financial advisor in the Medtech industry –- to advise the company on optimal methods to expand the access of its perinatal-derived tissue allografts for advanced wound care.
The company also promoted Michael Fortunato, a CPA with over 28 years of expert level financial accounting, SEC reporting, M&A and IPO experience, to the position of Chief Financial Officer from his prior position of Controller. BioStem says that the appointment is a step towards taking the company to its next level - given his extensive experience in finance, accounting, and strategic execution,
Revenue Growth and Uplisting to the OTCQB Market
The company posted year-on-year revenue growth of 95% in 2022 with its net revenue increasing by $2.96 million. The increase in sales was driven primarily by the expansion of its distribution network for Vendaje® which was aided by the Q-code award for Vendaje resulting in additional market acceptance and increased sales volume for the product.
Additionally, the company announced its common shares have been successfully up-listed from the OTC Pink Sheet Open Market to the OTCQB Venture Market (the “OTCQB”) by the OTC Markets Group Inc. (“OTC Markets”). BioStem CEO Jason Matuszewski stated that the uplisting “provides an opportunity to build our visibility and expand our shareholder base on an established public market. This will ultimately increase accessibility for U.S. investors and provide additional value to our shareholders.”
Development Of Sales And Marketing
The company continued to invest in its sales and marketing efforts during the year, including investments in hiring, sales training programs and supportive infrastructure for sales and marketing teams. This year saw the company accelerate its transition from an indirect sales force to a direct sales force through expanding its sales headcount.
BioStem also enhanced its customer support through the launch of its care partner program which helps its clinical partners answer Medicare reimbursement questions and supports them with the reimbursement process for its products.
The company announced the publication of a guidance paper titled “Standardized reporting of amnion and amnion/chorion allograft data for wound care” in Health Science Reports which examined the growth factor standardization method to quantify the elution of growth factors and cytokines in BioStem’s dehydrated amniotic membrane (Vendaje®) and dehydrated amnion/chorion (Vendaje AC®) placental derived allografts as a function of surface (cm2). The publication was included in Volume 5, Issue 5 of the journal.
“The data from this publication validates the ability of our proprietary tissue processing method, BioRetain, to maintain structural components with significant quantities of growth factors and cytokines from placental tissue,” BioStem CEO Jason Matuszewski said.
BioStem has also announced it will be the corporate sponsor of Kill Cliff Fight Club (“Kill Cliff FC”), a world-renowned mixed martial arts (MMA) gym and training center based in Deerfield Beach, Southern Florida to cement its presence as a successful and growing business in Florida.
The global advanced wound care market is projected to reach $14 billion by 2030, registering a CAGR of 4.6% from 2021 to 2030 according to a report published by Allied Market Research.
Given the substantial progress and strong commercial momentum registered by BioStem in the wound care and surgical recovery space, the company believes it is well-positioned to take advantage of the growing market and set itself up for strong commercial success in the coming years.
To learn more about BioStem Technologies visit the company webpage.
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