BioTissue Holdings, Inc Strengthens Strategic Focus on Ocular Innovation with Sale of Surgical and Wound Care Business to BioStem Technologies
Rhea-AI Summary
BioTissue (NASDAQ: BESM) completed the sale of its non-ocular Surgical and Wound Care business to BioStem (OTC: BSEM) on Jan 21, 2026. BioStem acquired exclusive rights to the Neox and Clarix product lines, and BioTissue's Surgical sales team and key support staff will join BioStem's commercial organization. BioTissue will continue manufacturing those products for BioStem while refocusing its commercial strategy on ocular therapies, including Prokera, CAM360 AmnioGraft, AmnioGraft, and AmnioGuard. Management frames the divestiture as a move to concentrate resources on eye care innovation and professional education.
Positive
- BioStem acquires exclusive rights to Neox and Clarix
- Sales and support staff transfer ensures commercial continuity
- Manufacturing agreement retained with BioTissue preserves supply
Negative
- BioTissue narrows focus to ocular market, increasing concentration risk
- Transaction financial terms not disclosed, leaving valuation unclear
News Market Reaction
On the day this news was published, BSEM gained 12.85%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
BioTissue Deepens Commitment to Ocular Market Leadership
Under the agreement, BioStem will acquire exclusive rights to the Neox® and Clarix® product lines. BioTissue's Surgical sales team and key support staff will join BioStem's commercial organization, while BioTissue will continue manufacturing these products for BioStem. BioTissue will concentrate its commercial strategy on advancing interventional therapies for acute and chronic ocular surface conditions, including Prokera®, CAM360 AmnioGraft™, AmnioGraft®, and AmnioGuard®, while prioritizing product innovation, professional education, and comprehensive customer support for the eye care market.
"Since our founding, our mission has been to transform patient outcomes through regenerative therapies," said Ted Davis, President and CEO of BioTissue. "This divestiture is a catalyst for our next chapter, one focused squarely on eye care innovation. With a streamlined portfolio and dedicated resources, we are poised to deliver breakthrough solutions and support to our ocular customers and their patients. At the same time, BioStem's commitment to advancing surgical and wound care applications ensures our technology continues to make a profound impact on physicians and patients across specialties. We are grateful to the Surgical team for their contributions and are excited to see them thrive with BioStem."
"With its world-class commercial team and differentiated portfolio of products, BioTissue has established a solid foundation of business in the surgical and wound care sectors," said Jason Matuszewski, CEO and Chairman of BioStem. "BioTissue's strengths are a natural complement to our existing business and we see a tremendous opportunity to provide focus and investment in commercial execution, driving continued growth and improving patient lives and outcomes."
About BioTissue Holdings, Inc.
BioTissue® is an emerging biotechnology company and leader in harnessing the unique properties of human birth tissue to facilitate regenerative healing, specializing in acute and chronic ocular surface conditions. BioTissue's portfolio of cryopreserved amniotic membrane products are processed using its proprietary CryoTek® cryopreservation technology, designed to retain the tissue's structural and functional integrity. The company continues to break new ground with Investigational New Drug (IND) applications as the company pursues Biologic License Applications (BLAs) for products to treat patients' unmet clinical needs. BioTissue is committed to empowering healthcare professionals with solutions to deliver optimal patient outcomes by fostering innovation through evidence-based science. Since its inception, clinicians have performed over 1 million human procedures with its products and published over 420 peer-reviewed publications supporting BioTissue's platform technology. Learn more at www.biotissue.com/. BioTissue Holdings, Inc. was advised by Bass, Berry & Sims as legal counsel on the transaction.
About BioStem Technologies, Inc. (OTC: BSEM): BioStem Technologies 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 is focused on manufacturing products that change lives, leveraging its proprietary BioRetain® processing method. BioRetain® has been developed by applying the latest research in regenerative medicine, designed to optimize the retention of the inherent structural and molecular properties of the native tissue. BioStem Technologies' quality management system and standard operating procedures have been reviewed and accredited by the American Association of Tissue Banks ("AATB"). These systems and procedures are established per current Good Tissue Practices ("cGTP") and current Good Manufacturing Processes ("cGMP"). Our portfolio of quality brands includes AmnioWrap2™, VENDAJE®, VENDAJE AC®, VENDAJE OPTIC®, AMERICAN AMNION™ AND AMERICAN AMNION ™ AC. Each BioStem Technologies placental allograft is processed at the Company's FDA registered and AATB accredited site in
BioTissue Media Contact:
Heather Kowalczyk
McDougall Communications for BioTissue
heather@mcdougallpr.com or (585) 434-2148
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SOURCE BioTissue Holdings, Inc.
FAQ
What did BioTissue announce about the Surgical and Wound Care sale (BESM) on Jan 21, 2026?
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Will BioTissue continue making the sold products after the sale of its Surgical business (BESM)?
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