PRESS RELEASE
By: News Direct
May 20, 2024
4 Stocks to Watch in the Booming Regenerative Medicine Market
--News Direct--
Regenerative medicine is revolutionizing healthcare. It encompasses a range of cutting-edge therapies aimed at repairing or replacing damaged tissues and organs, offering tangible solutions rather than mere symptom management. With a global market projected to surge from USD 29.42 billion in 2023 to an estimated USD 154.05 billion by 2033, regenerative medicine presents significant investment opportunities.
This burgeoning field focuses on utilizing tissue engineering, cellular therapies, and medical devices to harness the body's natural healing processes, paving the way for unprecedented medical advancements. By addressing the root causes of ailments and enabling the regeneration of tissues and organs, regenerative medicine holds immense promise for transforming patient outcomes and reshaping the healthcare landscape.
Investors should pay close attention to the developments in regenerative medicine, as they represent not only a paradigm shift in medical treatment but also a lucrative avenue for growth. Here are four companies in the market segment for your watchlist.
SNN Smith+Nephew (NYSE: SNN) is a prominent medical technology company specializing in the repair, regeneration, and replacement of soft and hard tissue. With a focus on innovative solutions, Smith+Nephew is positioned as a key player in the regenerative therapy segment.
In its recent trading update for the first quarter ended March 30, 2024, Smith+Nephew reported a 2.9% increase in revenue, reaching $1,386 million. This growth highlights the company's resilience and market presence. It is driven by strong performance in orthopaedics, sports medicine, and ENT.
Orthopaedics revenue saw a 4.4% increase on an underlying basis, with notable growth in key segments such as hip and knee implants outside the US. Similarly, strong performance in sports medicine joint repair and the growth of the REGENETEN product line drove an underlying 5.5% increase in revenue for sports medicine and ENT.
Despite some softness in Advanced Wound Management, Smith+Nephew maintains its full-year 2024 guidance, expecting underlying revenue growth in the range of 5.0% to 6.0%. This guidance reflects the company's confidence in its ability to capitalize on market opportunities and drive sustainable growth.
Furthermore, a recent randomized controlled trial (RCT) validated Smith+Nephew's REGENETEN Bioinductive Implant by showing a noteworthy 68% decrease in full-thickness rotator cuff re-tear rates. With over 100,000 procedures completed globally since its introduction, the REGENETEN Bioinductive Implant is poised to contribute significantly to Smith+Nephew's growth in the regenerative therapy segment.
As investors seek potential opportunities in the regenerative therapy sector, Smith+Nephew (NYSE: SNN) stands out as a company with innovative solutions and strong growth prospects, making it a stock worth considering.
Major global medical technology provider Zimmer Biomet Holdings, Inc. (NYSE: ZBH) continues to demonstrate robust financial performance, reporting impressive first-quarter results. The company, headquartered in Warsaw, Indiana, posted a net income of $172.4 million for the quarter, translating to earnings of 84 cents per share. After adjusting for amortization costs and restructuring expenses, earnings stood at $1.94 per share, surpassing expectations set by Wall Street analysts.
In terms of revenue, Zimmer Biomet exceeded forecasts, generating $1.89 billion in revenue for the period. This figure outpaced the expectations of analysts surveyed by Zacks Investment Research, who had projected revenue of $1.87 billion. These results underscore the company's strong market position and its ability to deliver value to shareholders.
Last year, in 2023, Zimmer Biomet Holdings Inc. agreed to acquire Embody Inc. for $155 million at closing, with an additional $120 million in contingent milestone payments over the next three years. The deal includes Embody’s entire portfolio of collagen-based regenerative solutions for soft tissue injuries. This strategic move further solidifies Zimmer Biomet's presence in the regenerative medicine sector.
Autologous cellular therapies are at the forefront of regenerative medicine. Such treatment options include blood and bone marrow aspirates and concentrations. Zimmer Biomet offers Platelet-Rich Plasma (PRP) products to produce PRP, which can be mixed with autograft or allograft materials. Their BioCUE Blood and Bone Marrow Aspirate (bBMA) Concentration System and Plasmax Plasma Concentration System are notable contributions to this field.
Moreover, Zimmer Biomet's cartilage repair solutions can address osteochondral deficiencies in multiple anatomic locations. These solutions provide early interventions that can limit the need for further surgical intervention and potentially divert the progression of these lesions.
The philosophy defining Zimmer Biomet's hard tissue products is based on the complex processes involved in tissue repair. Their extensive portfolio includes matrix/scaffold, signaling proteins, and tissue-forming cells that work together to form new tissue, particularly bone. This approach acknowledges the limitations of traditional autograft procedures and offers innovative synthetic bone graft substitutes to overcome these challenges.
In addition to their involvement in hard tissue products, Zimmer Biomet offers soft tissue management products suitable for various practices, including orthopedics, plastic surgery, and general surgery. This comprehensive portfolio underscores Zimmer Biomet's commitment to advancing regenerative medicine and highlights the company's recognition of the potential future in this area.
Moving forward, Zimmer Biomet's continued focus on innovation and strategic acquisitions positions it as a key player in the evolving landscape of regenerative medicine. With a strong foundation in orthopedic devices and an expanding portfolio in regenerative solutions, Zimmer Biomet is well-positioned to drive growth and deliver value to investors in the years to come.
MDXG MiMedx Group, Inc. (NASDAQ: MDXG) stands as a pioneer and leader in the regenerative medicine sector, dedicated to helping humans heal. With over a decade of experience in managing chronic and hard-to-heal wounds, MiMedx offers a leading portfolio of products tailored for applications in wound care, burns, and surgical sectors of healthcare. The company's vision is to emerge as the foremost global provider of healing solutions through relentless innovation aimed at restoring quality of life.
MiMedx specializes in developing and distributing placental tissue allografts across various healthcare sectors. Leveraging its patented and proprietary PURION process, MiMedx processes human placental tissues to produce allografts that retain the tissue's natural biological properties and regulatory proteins. This processing method, which combines aseptic techniques with terminal sterilization, ensures the preservation of the tissue's integrity and efficacy.
In the first quarter of 2024, MiMedx achieved significant milestones, demonstrating its continued growth and success. With net sales reaching $85 million, reflecting an impressive 18% growth over the prior year period, the company showcased its strong market presence and growing demand for its products. Additionally, MiMedx reported a GAAP net income from continuing operations of $9 million with an adjusted EBITDA margin of 22%, highlighting its solid financial performance and operational efficiency.
Furthermore, MiMedx expanded its product portfolio through a distribution agreement with Regenity Biosciences, introducing a 510(k)-cleared collagen particulate xenograft product set to launch later in the year. This move aligns with MiMedx's commitment to enhancing its offerings and meeting the evolving needs of its customers in the wound and surgical markets.
Under the leadership of Joseph H. Capper, MiMedx's Chief Executive Officer, the company continues to demonstrate clinical strength, commercial effectiveness, and disciplined expense management, positioning itself for sustained growth and long-term success. With a focus on relentless innovation and diversification of its portfolio, MiMedx remains poised to deliver innovative healing solutions and drive shareholder value in the dynamic healthcare landscape.
For investors with a greater appetite for risk, BioStem Technologies Inc. (OTC: BSEM) represents a compelling opportunity. BSEM is focused on developing, manufacturing, and commercializing placental-derived biologics for regenerative therapies. Its proprietary BioRetain processing method is central to its innovation, preserving crucial growth factors and tissue structure, which differentiates its products in the advanced wound care market.
In the first quarter of 2024, BSEM reported revenue of $41.9 million, a significant increase from $0.6 million in the same period the previous year. This growth is primarily driven by the market acceptance of AmnioWrap2, a placental-derived allograft for various wound applications, according to CEO Jason Matuszewski. The company's gross margin was 95%, up from 82% in the first quarter of 2023, reflecting the impact of increased sales and an agreement with Venture Medical. Additionally, BioStem achieved net income for the first time in its history, marking a notable milestone.
BSEM has also enhanced its operational capabilities. The company has engaged McCoy Clinical Consulting to lead pivotal clinical trials for Diabetic Foot Ulcer (DFU) and Venous Leg Ulcer (VLU) treatments. Moreover, BioStem completed a comprehensive two-year audit, a step towards listing on a national stock exchange, which enhances financial transparency and governance.
A significant development for BioStem is the United States Patent and Trademark Office’s (USPTO) prioritized examination of its patent for the BioRetain processing technology. This patent is essential for protecting BioStem’s method of processing human amniotic tissue, a key differentiator in the regenerative medicine market. The company's intellectual property portfolio supports its commitment to innovation and its potential to impact the wound care market, which is projected to grow steadily.
BioStem has expanded its product offerings and market reach with products like AmnioWrap2, VENDAJE, and VENDAJE AC, processed at its FDA-registered and AATB-accredited facility in Pompano Beach, Florida. These products have gained market traction, supported by BioStem’s quality management system and adherence to current Good Tissue Practices (cGTP) and current Good Manufacturing Practices (cGMP).
Operational highlights include acquiring assets from Auxocell Laboratories, launching AmnioWrap2 nationwide with Venture Medical LLC, and securing commercialization agreements for Avenova Allograft with NovaBay. The company’s products have also been listed with the U.S. Department of Defense and Veterans Administration, broadening its market presence.
On May 15, Zachs Small Cap Research published a comprehensive research report on BioStem Technologies Inc. (OTC: BSEM) highlighting their recent financial results and issuing a valuation of 23.25 per share.
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