BioStem Crushes Estimates On Stellar Growth

November 15, 2023

BioStem  Crushes Estimates

On  Stellar Growth

New  Price Target $9.25



By Brad Sorensen, CFA



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.


BSEM announced its 3Q financial results today and the numbers  were impressive:

  • Net       revenue was up 214% over a year ago to $3.6 million, well ahead of our       estimates.
  • Gross       profit rose to $3.3 million, which represented 91% of revenue,       substantially higher than the 79% seen a year ago.
  • BSEM       blew past our earnings estimates by posting a $0.03 net income per       share.

The company also recently  announced that one of its primary products, Vendaje AC, was issued a “Q” code  from the Centers for Medicare and Medicaid Services. This code applies to  drugs, biologics and medical equipment and services that are not identified by  the national code needed for Medicare claims processing and allows these “Q”  products to be reimbursed by Medicare.


Vendaje AC is intended for homologous use as a protective  covering and comprised of dehydrated amniotic/chorionic tissue.


  • The       combined amniotic and chorionic membrane advantages:
  • The       combination of amnion and chorion is thicker and higher in tensile       strength than allografts containing amnion alone. It is also richer and       more varied in growth factors as well thanks to the higher quantity of       growth factors present in the chorion layer.

Additionally, the company  announced in October that it was opening the first site for a clinical trial  to evaluate its Vendaje tissue allograft in the treatment of diabetic foot  ulcers. Management also announced a capital raise of $2 million that will bolster  the company’s ability to facilitate the trial and continue to invest in grow.


These recent announcements  reinforce our belief that growth is just beginning for BSEM and as a result  we are raising earnings estimates and, in conjunction with the earnings beat  this quarter and our raising of future years, raising our valuation target to  $9.25.




We reiterate our belief the  BSEM is still underpriced even after its recent move higher and continues to  represent a good opportunity at recent prices for investors to get in before  what we believe will be a more aggressive move higher in the not-too-distant  future. The vision management has for the company’s product and the focus  they are using to deliver results are encouraging and are now being rewarded  by increased demand. As such, we suggest investors with a modestly higher  risk tolerance take a look at BSEM.

For full article:

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