BioStem develops and sells perinatal tissue allografts, which are processed human placental and umbilical cord tissues used as protective barriers for wound healing and surgical recovery. Clinicians use these allografts to treat chronic non-healing wounds and as adjuncts in orthopedic, podiatric, and general surgeries. BioStem processes tissue using three proprietary platforms—BioRetain, CryoTek, and SteriTek—to produce dry, cryopreserved, and shelf-stable products sold under brands like Vendaje, Neox, and Clarix. BioStem sells these products to physicians, hospitals, and ambulatory surgery centers through direct sales representatives, independent agents, and third-party distributors. The business model depends on Medicare reimbursement, which transitioned to a flat-rate payment structure in 2026. BioStem argues this change shifts the market focus from pricing to clinical effectiveness. Following its 2026 acquisition of BioTissue’s surgical and wound care assets, BioStem is expanding into hospital and surgical settings by using a national direct sales force and established group purchasing organization contracts. BioStem maintains a vertically integrated manufacturing model in Florida and plans to move the manufacturing of acquired products in-house to increase margins. The growth strategy relies on generating clinical evidence through randomized controlled trials to secure payer coverage and hospital approvals.