BioStem Technologies Inc. is entering the acute wound care market with the $15 million purchase of BioTissue Holdings Inc.’s surgical and wound care business.

BioTissue is an ocular-first biotechnology provider, pioneering regenerative solutions for eye care while extending the innovations to numerous clinical applications beyond ophthalmology. Through this transaction, BioStem gains the full portfolio of BioTissue’s surgical and wound care business, including the Neox and Clarix product lines. This acquisition includes the commercial infrastructure associated with the surgical and wound care business, consisting of a national sales network (direct sales reps and independent agents) and GPO contracts.

The transaction significantly expands BioStem’s internal commercial organization, extending its reach across hospital inpatient and outpatient care settings, according to the company. BioTissue’s surgical and wound care offerings will be integrated into BioStem’s portfolio, broadening its existing chronic and acute wound care product lines with complementary solutions. The addition of these products strengthens the company’s position in advanced wound healing and creates a direct pathway into new markets for the company as it diversifies into acute wound care and soft-tissue repair segments, BioStem bigwigs claim.

“This acquisition is a natural strategic fit that underscores BioStem’s commitment to leading advanced wound care. It provides an immediate foothold in hospital-based applications and expands our technology portfolio with an additional platform designed to optimize the preservation of both placental and umbilical tissue allografts,” BioStem Chairman/CEO Jason Matuszewski said. “This acquired technology opens meaningful entry into high-value adjacent market segments, from acute surgical wounds to burns and soft-tissue repair, while creating synergies that enhance our entire product suite and diversify our revenue streams. BioTissue’s surgical portfolio, pipeline, and sales force, combined with BioStem’s reach and operational strengths, position us to address patient needs across the spectrum of acute and chronic wound care. I am excited to welcome BioTissue employees to further our mission of delivering advanced wound healing technologies.”

Under the terms of the agreement, which was approved by each company’s Board of Directors, BioStem has acquired the surgical and wound care business of BioTissue for a $15 million upfront cash payment, with the potential for an additional regulatory milestone payment of up to $10 million for achieving U.S. Food and Drug Administration (FDA) 510(k) clearance for a new product, and potential commercial royalty milestone payments of up to $15 million.

The acquired assets generated approximately $29 million in 2025 sales and are expected to grow and contribute positive EBITDA for BioStem this year. Post closing, BioStem’s cash and restricted cash balance is approximately $16 million.

In conjunction with the acquisition, BioStem has promoted industry veteran Barry Hassett, previously the senior vice president of Commercial Strategy, to chief commercial officer to lead the newly combined commercial team. Hassett has more than 25 years of industry experience, including five years with BioTissue, having served as vice president of Marketing, leading the initial development of its surgical and wound care business as well as its ophthalmic portfolio.

BioStem Technologies is focused on harnessing the natural properties of perinatal tissue in developing, manufacturing, and commercializing allografts for regenerative therapies. The company manufactures products that leverage its proprietary BioRetain processing method. BioRetain applies the latest research in regenerative medicine, and is designed to optimize the retention of native tissue’s inherent structural and molecular properties. 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). Its 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 Pompano Beach, Fla.

BioTissue is an emerging biotechnology company harnessing the power of human birth tissue to facilitate regenerative healing, specializing in acute and chronic ocular surface conditions. BioTissue’s cryopreserved amniotic membrane products use its proprietary CryoTek cryopreservation technology, which is designed to retain the tissue’s structural and functional integrity. BioTissue is committed to fostering innovation through evidence-based science. Since its inception, clinicians have performed more than 1 million human implants with its products and published 420 peer-reviewed publications supporting BioTissue’s platform technology.