- Total Revenue Increases 1% Year-Over-Year - Core Revenue Excluding COVID Tests Climbs 5%, Reflecting Stronger Growth
- Significant Cost Savings Plan Implemented After Year End - Expected to Deliver Expense Reductions of $1.0 to $1.4 Million in the Coming Year
- inFoods® IBS Pilot with Large 1,100 Physician Group Progressing Ahead of Schedule
IRVINE, Calif., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Biomerica, Inc. (NASDAQ: BMRA) today reported its financial results for the fiscal year ended May 31, 2024. The Company achieved a modest increase in net sales to $5.4 million, compared to $5.3 million in the prior year. This growth was primarily driven by strong demand for EZ Detect colorectal screening tests and Aware® breast self-exam products in the Middle East including the United Arab Emirates.
Excluding revenues from COVID-19 test kits, Biomerica achieved a 5% year-over-year revenue increase, highlighting the strength and resilience of its diversified product portfolio. The Company also enhanced its gross margin, rising to 11% from 8%, driven by improved cost management and operational efficiencies.
Additionally, the Company reduced its net loss for the fiscal year to $6.0 million, marking a 15% improvement from the $7.1 million net loss reported in fiscal 2023. This progress highlights Biomerica's ongoing commitment to disciplined expense management. Following the fiscal year-end, the Company implemented a significant cost-savings plan, expected to reduce expenses by $1.0 million to $1.4 million in the coming year as part of these ongoing efforts.
| Selected Financial Results | Year Ended May 31, | Year Ended May 31, | |||||||
| 2024 | 2023 | ||||||||
| ($ in millions, except percentages) | |||||||||
| Revenue | $5.4 | $5.3 | |||||||
| Gross magin | 11 | % | 8 | % | |||||
| Operating expenses | $7.0 | $7.7 | |||||||
| Operating loss | ($6.4 | ) | ($7.2 | ) | |||||
| Net Loss | ($6.0 | ) | ($7.1 | ) | |||||
Strategic Growth Areas:
Biomerica is actively working in three key areas to drive revenue growth:
- EZ Detect and Other At-Home Tests in the MENA Region: Continued expansion through distribution partners in the Middle East and North Africa region and seeking insurance reimbursement.
- H. pylori Antigen Sales in the U.S.: Capitalizing on market opportunities for the Hp Detect Stool Antigen ELISA test.
- inFoods® IBS Opportunities: Expanding the utilization of the inFoods® IBS test in physician groups and possible distribution partnerships.
Key Milestones Achieved in Fiscal Year 2024:
FDA 510(k) Clearance: Biomerica received U.S. Food and Drug Administration (FDA) 510(k) clearance for its Hp Detect Stool Antigen ELISA test (K232892). This test detects the presence of the H. pylori bacteria, which infects approximately 35% of the U.S. population. H. pylori is linked to over 80% of gastric cancers, making it a critical target for early detection and treatment. Dr. William Chey, an expert in H. pylori management, emphasized the importance of testing for H. pylori eradication, especially in light of rising antibiotic resistance.
Advancement of inFoods® IBS: The inFoods® IBS diagnostic test has progressed significantly with the introduction of a new patient self-collection system. This system allows patients to collect their own blood samples at home using a simple finger-stick device, enabling nationwide access through telehealth and online medical providers. This innovation greatly expands the reach of inFoods® IBS to millions of IBS sufferers.
inFoods® IBS Pilot Program in 1,100 Physician Group: Biomerica launched a pilot program for the inFoods® IBS product with a large 1,100-member physician group, which is progressing ahead of schedule. This novel approach identifies individual dietary triggers for IBS symptoms and has shown remarkable success in alleviating symptoms for most patients in clinical studies.
Exclusive Distribution Agreement in the UAE: Biomerica secured a multi-year exclusive distribution agreement with one of the UAE's largest healthcare conglomerates. This partnership focuses on enhancing the accessibility and efficiency of colorectal cancer screening and breast examination technologies using Biomerica's at-home screening products EZ Detect and Aware®. The goal is to integrate these tests into national health protocols in collaboration with various governmental health departments.
Data Presentation at 2024 Digestive Disease Week (DDW): Data from Biomerica's collaborators at the University of Michigan, utilizing inFoods® IBS technologies, were presented at the 2024 Digestive Disease Week (DDW) Annual Meeting in Washington, D.C. DDW is the world's premier scientific and clinical meeting for digestive disease healthcare professionals.
Biomerica remains committed to advancing its financial position and driving long-term growth through innovative medical products and strategic partnerships.
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 primarily focuses on gastrointestinal and inflammatory diseases where the Company has multiple diagnostic and therapeutic products in development.
About inFoods®
The inFoods IBS test involves a simple blood collection procedure and is designed to assess a patient's above normal immunoreactivity to specific foods. 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. Further information about Biomerica's patented inFoods® Technology Platform can be found at: https://biomerica.com/inFoods/our-technology/. The inFoods IBS clinical study was performed 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%, for IBS patients in the treatment diet arm had a statistically significant improvement over 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 is similar and, in some cases, better than the current drugs in the market.
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 cash position, balance sheet, cost savings, sales, revenues, overhead, expenses, cost of goods, operations, and earnings; the Company's need for raising additional capital; the Company's expected sales growth for the Company's inFoods IBS product, Hp Detect product and other existing 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.
