BioStem Technologies at Micro-Cap Virtual Conference: shift to hospitals

On Wednesday, August 19, 2026, BioStem Technologies (BSEM) unveiled a new business strategy at the Micro-Cap Virtual Conference. The company has shifted its focus from wound care to a more diversified regenerative medicine platform, targeting hospitals and surgery. CEO Jason Matuszewski explained that BioStem was once wound-centric, reliant on CMS wound reimbursement and physician offices.

The company is now surgical-centric, with a broader commercial payers, CMS, hospital, and office presence, supported by a direct sales force, independent agents, and distributors.

Matuszewski highlighted the most significant change: a shift in reimbursement mix. Previously, 100% of revenue was product-based reimbursement, dictated by CMS pricing. Now, 87% of revenue comes from surgical procedural-based reimbursement under DRG, with the remaining 13% still tied to product-based reimbursement. This change is the key to de-risking the company's business model.

The company's addressable market is approximately $26 billion, with about $15.3 billion in wound care and $11 billion in surgical opportunities. Although the company currently has limited penetration in the surgical market, there is significant room for growth. Lastly, BioStem reported Q2 2026 revenue of $7.9 million, up 29% from $6.1 million in Q1.

Hospital revenue increased to $6.7 million from $5.7 million, while physician office revenue rose to $1.1 million from $800,000. However, year-over-year revenue fell from $11.0 million in Q2 2025 due to a CMS pricing reset in the BioRetain wound-care business.