This underfollowed biotech company just CRUSHED its earnings report and carries a $9.25 price target from Zacks!
Greetings Investors,
The biotech arena is not the easiest to navigate given how many different kinds of companies are in it. While giants like Merck, Amgen, and Sanofi make plenty of headlines, it's all about finding emerging players with astronomical growth potential.
This brings attention to the growing biotech company BioStem Technologies, Inc. (OTCQB: BSEM) which is not only providing a vital service to the human population but is providing economic value to shareholders as well.
Currently trading at around $3 a share, BSEM may be at value right now given the $9.25 price target it received from Zack's smallcap research on Tuesday!
This is a potential upside of over 180% from current levels!
Zack's has increased its price target on BSEM given the explosive Q3 earnings that were reported.
- Net revenue for the company was up 214% over a year ago to $3.6 million.
- Gross profit rose to $3.3 million, which represented 91% of revenue, substantially higher than the 79% seen a year ago.
BSEM's earnings were "well ahead of our expectations and showed stellar growth in revenue over the past year," said Zacks.
As Wall Street continues to digest these stupendous numbers, there could be blue-sky growth ahead so make sure to put BSEM at the top of your radar!
Both Investing.com and BarChart.com currently have a "STRONG BUY" rating on the stock!
https://www.biostemtechnologies.com/
What is the Company doing?
BSEM is changing the skin graft market by using the natural properties of perinatal tissue.
Growth is accelerating as management makes smart and aggressive moves.
The company is focused on the application of tissue engineering in wound healing and has curated a suite of versatile products called Vendaje.
Vendaje harnesses elements of perinatal tissue and the body's innate biology to repair and restore damaged tissue in wounds, resulting in speedier healing with reduced pain.
BSEM 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.
This is a huge milestone!
Zacks Smallcap Research noted: "With the company's recent announcement of a Q code, we believe rapid growth is set to continue and are raising our valuation level as a result."
Two big markets…
The global wound care market is a rapidly growing sector that is focused on the treatment and management of different types of wounds. Growth in this arena is driven by factors like an increasing number of diseases and conditions affecting wound healing capabilities, the rise in spending on chronic wounds, and technological improvements.
The market for improved wound care products is growing exponentially.
In terms of revenue, the global wound care market in terms of revenue was estimated to be worth $20.8 billion in 2022 and is poised to reach $27.2 billion by 2027, growing at a CAGR of 5.4% from 2022 to 2027.
Then there is the global diabetic foot ulcer treatment market, which was valued at $4.67 billion in 2021 and is expected to expand at a compound annual growth rate of 5.9% from 2022 to 2030.
Diabetes is one of the most common health conditions across the world and and increasing number of diabetic patients are expected to propel the wound care industry.
The company has had a string of positive releases that point to increased demand for its innovative products and indicate that BSEM still has plenty of room to rise!
BSEM 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 growth.
In summary…
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." With the impressive revenues reported on Tuesday, the company very well looks to be closer to achieving that goal!
Regenerative medicine continues to find its way into the mainstream…. It's an exciting topic on Wall Street and BSEM could be a valuable player in this transformative sector.
Remember... Zack's just increased its price target to $9.25 so the research firm sees the value!
From their report: "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."
Bullish ratings are piling up for BSEM and this biotech company may not fly under the radar much longer!
