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Biomerica Reports Third Quarter 2024 Financial Results

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Biomerica, Inc. (BMRA) reports third-quarter 2024 financial results, showing improvement with a narrowed loss per share of $0.27 from $0.40. The company expands its sales force and presents positive clinical data for InFoods IBS at the upcoming Digestive Disease Week 2024 Conference. Biomerica is in discussions with key clinical lab customers for the use of its FDA-cleared Hp Detect™ Test to detect H. pylori bacteria.
Positive
  • Biomerica reports a narrowed loss per share of $0.27 from $0.40, showcasing fiscal discipline and improvement.
  • The company expands its sales force for the nine months in fiscal 2024, indicating growth and market penetration.
  • Positive clinical data for InFoods IBS will be presented at the upcoming Digestive Disease Week 2024 Conference, highlighting the company's advancements in medical diagnostics.
  • Biomerica is in discussions with key clinical lab customers for the use of its FDA-cleared Hp Detect™ Test, targeting a significant portion of the U.S. population infected with H. pylori bacteria.
Negative
  • None.

The reduction in loss per share to $0.27 from $0.40 is indicative of Biomerica's improved financial performance over the nine-month period. This suggests that the company has managed to exert fiscal discipline despite the costs associated with expanding its sales force. Investors might look positively upon this development, considering it may reflect better cost management and potential for reduced cash burn rate. Additionally, any improvement in the bottom line is critical for the company's long-term sustainability, particularly if it can be maintained or further improved upon.

However, one must consider that narrowing losses does not equal profitability. For a company like Biomerica, which operates in the competitive medical diagnostics and therapeutic products sector, ongoing investment in research and market expansion is vital. The sales force expansion indicates an investment in growth, but the true efficacy of this strategy will be evaluated based on future revenue growth and market penetration.

The upcoming presentation of the InFoods IBS clinical trial data at DDW 2024 represents a significant milestone for Biomerica. Clinical data is a strong driver of both clinical adoption and investor confidence. Positive results can lead to increased interest from healthcare providers and could catalyze partnerships or sales agreements. The potential market impact is magnified by the prevalence of IBS, which affects a substantial portion of the population and the current lack of effective diagnostic tools for this condition. Therefore, the success of InFoods IBS could significantly enhance Biomerica's market position.

Furthermore, the company's discussions with key clinical lab customers regarding its FDA 510(k) cleared Hp Detect™ Test Product is promising. The detection of H. pylori, a major risk factor for gastric cancer, has profound public health implications. If Biomerica's product is able to secure a foothold in the diagnostic market, it could become a recurring revenue stream, given the bacteria's widespread prevalence. This could be a substantial growth driver, contingent on market penetration and adoption rates.

  • Fiscal Discipline Leads to Improvement as Loss per Share Narrows to $0.27 from $0.40 Amidst Sales Force Expansion for the Nine Months in Fiscal 2024
     
  • InFoods IBS Positive Clinical Data to be Presented at the Upcoming Digestive Disease Week (DDW) 2024 Conference in the DDW Irritable Bowel Syndrome (IBS) Clinical Session
     
  • Company in discussions with Key Clinical Lab Customers for Use of its Recently US FDA 510(k) Cleared Hp Detect™ Test Product, Designed to Detect the Presence of the H. pylori Bacteria that infects approximately 35% of the U.S. Population

IRVINE, Calif., April 12, 2024 (GLOBE NEWSWIRE) -- Biomerica, Inc. (Nasdaq: BMRA), (the “Company”) a global provider of advanced medical diagnostic and therapeutic products today reported financial results for the third quarter of fiscal 2024 ended February 29, 2024.

Recent Highlights:

  • Collaborators from the University of Michigan will present inFoods IBS clinical trial data during the highly anticipated IBS Clinical Session at the 2024 Digestive Disease Week (DDW) Annual Meeting in Washington DC. Known as the foremost gathering for digestive disease healthcare professionals globally, DDW provides an unparalleled platform for showcasing cutting-edge research and advancements.
     
  • The Company is in discussions with labs to facilitate the adoption of its recently US FDA 510(k) cleared HP Detect™ ELISA Test. HP Detect is designed to Detect the Presence of the H. pylori Bacteria that infects approximately 35% of the U.S. Population. Over 80% of gastric cancers are attributed to H. pylori infection, and gastric cancer is the third most common cause of cancer-related death worldwide. The Company is now marketing the product to clinical labs In the US and distributors internationally.

“We are excited about the sales growth of our inFoods IBS technology. At the same time, we are seeing increased demand for our EZ Detect colorectal disease test given the insurance reimbursement in UAE. Finally, we expect the opportunities for HP Detect revenues in the USA will be meaningful," said Zackary Irani, CEO of Biomerica.

Third Quarter Fiscal 2024 Financial Results

In our fiscal third quarter of 2024, despite encountering some softness in top-line revenue, we remain optimistic and steadfast in our commitment to advancing the commercialization efforts of the inFoods® IBS test. While net sales for the fiscal third quarter of 2024 were $1.0 million, down from $1.1 million for the fiscal third quarter of 2023, we observed notable sales growth of EZ Detect and Aware with new customers from the Europe and MENA regions (which does not yet include UAE sales), up 13% compared to the same period last year.

Although our operating expenses for the quarter were $0.1 million higher than the third quarter of 2023, primarily due to the strategic expansion of our sales force in fiscal year 2024, it is noteworthy that our operating expenses remained consistent with the second quarter of 2024. Importantly, over the nine months of fiscal year 2024, we have made significant strides in improving operating expenses by over 6%, inclusive of our sales force expansion, when compared to the same period in fiscal year 2023. Our losses per share narrowed to $0.11 per share from $0.12 per share when compared to the third fiscal quarter of 2023. As of February 29, 2024, the Company maintained a cash and equivalents balance of $5.3 million down from $7.1 million from fiscal second quarter of 2024.

Net sales for the nine months in fiscal 2024 were $4.3 million, up from $4.2 million for the nine months in fiscal 2023. Our gross margins improved to 13.7% from 9.9% within the year-to-date 2024 fiscal year compared to same period in 2023. With the aforementioned focused management of operating expenses, net operating loss was 11% better in 2024 fiscal year compared to 2023.

Selected Financial Results Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended
   February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023
($ in millions, except percentages)       
Revenue  $1.0   $1.1   $4.3   $4.2  
Gross magin  -14.7% 10.8% 13.7% 9.9%
Operating expenses  $1.9   $1.8   $5.4   $5.8  
Operating loss  ($2.0) ($1.7) ($4.8) ($5.4)
Net Loss  ($1.9) ($1.7) ($4.6) ($5.3)
              

About Biomerica (NASDAQ: BMRA)

Biomerica, Inc. (www.biomerica.com) is a global biomedical technology company that develops, patents, manufactures and markets advanced diagnostic and therapeutic products used at the point-of-care (in home and in physicians' offices) and in hospital/clinical laboratories for detection and/or treatment of medical conditions and diseases. The Company's products are designed to enhance the health and well-being of people, while reducing total healthcare costs. Biomerica's primary focus is on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.

About inFoods®
The inFoods IBS test is designed to assess a patient’s above normal immunoreactivity to specific foods utilizing a simple finger prick blood sample. Instead of difficult to manage broad dietary restrictions, physicians can now use the InFoods IBS information to make targeted, patient-specific recommendations about specific foods that, when removed from the diet, may alleviate IBS symptoms such as pain, bloating, diarrhea and constipation. The inFoods IBS test and clinical outcomes were studied at several prominent centers including Mayo Clinic, Beth Israel Deaconess Medical Center Inc. - a Harvard Medical School Teaching Hospital, Houston Methodist Hospital, and the University of Michigan. The clinical results for improvement in the Abdominal Pain Intensity (API) responder endpoint of >30% reduction in pain, for IBS patients in the treatment diet arm was greater than patients in the placebo diet arm (p-value of 0.0246). The improvement for patients in the treatment arm versus the placebo arm is considered clinically significant and for certain endpoints is similar and, in some cases, better than the current drugs in the market. Further information about Biomerica’s patented InFoods® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the Company’s current and future sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected commercialization launch dates and future revenues from the Company's HP Detect product, InFoods IBS product and other products; and diversification of the Company's revenue streams. Such forward-looking information is based upon the current beliefs and expectations of management and involves important risks and uncertainties that could significantly affect anticipated results. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of Biomerica. Factors that could cause actual results to differ from those expressed in the forward-looking statements are discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed with the SEC and available on the SEC's website (www.sec.gov). The Company is under no obligation to update any forward-looking statements after the date of this release.

Corporate Contact:

Zack Irani
949-645-2111
investors@biomerica.com

Source: Biomerica, Inc.


FAQ

What is Biomerica's ticker symbol?

Biomerica's ticker symbol is BMRA.

What financial improvement did Biomerica show in the third quarter of 2024?

Biomerica reported a narrowed loss per share of $0.27 from $0.40 in the third quarter of 2024.

What clinical data will be presented by Biomerica at the upcoming Digestive Disease Week 2024 Conference?

Biomerica will present positive clinical data for InFoods IBS at the Digestive Disease Week 2024 Conference.

What is the purpose of Biomerica's FDA-cleared Hp Detect™ Test?

Biomerica's FDA-cleared Hp Detect™ Test is designed to detect the presence of the H. pylori bacteria.

What percentage of the U.S. population is infected with H. pylori bacteria?

Approximately 35% of the U.S. population is infected with H. pylori bacteria.

Biomerica, Inc.

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About BMRA

biomerica, inc. (www.biomerica.com) is a global biomedical company that develops, manufactures and markets advanced diagnostic products used at the point-of-care (in home and in physicians’ offices) and in hospital/clinical laboratories for the early detection of medical conditions and diseases. the company’s products are designed to enhance health and well-being, while reducing total healthcare costs. biomerica primarily focuses on products for gastrointestinal disease, diabetes and esoteric testing. the biomerica infoods® ibs product identifies patient specific foods that when removed may alleviate an individual's ibs symptoms. this patent pending diagnostic guided therapy is designed to allow for a patient specific guided dietary regimen to improve irritable bowel syndrome (ibs) outcomes. the point-of-care product is being developed to allow physicians to perform the test in-office using a finger stick blood sample while a clinical lab version of the product will be the first for wh