MELVILLE, NY - Amid growing interest in aesthetic treatments, BioRestorative Therapies Inc. (NASDAQ:BRTX), a clinical-stage biotech company, has signed a five-year exclusive supply agreement with Cartessa Aesthetics, LLC, a prominent North American aesthetics company.
This partnership aims to introduce BioRestorative's cell-based biologic product, designed to enhance cosmetic features and reduce signs of aging, into the lucrative aesthetics market.
The global aesthetics market, valued at $75.46 billion in 2023, is anticipated to expand to $232.49 billion by 2032, with a compound annual growth rate (CAGR) of 13.34%. A subset of this market, medical aesthetics, is projected to grow from $15.4 billion in 2023 to $25.9 billion by 2028, at an 11% CAGR. BioRestorative's entry into the bio-cosmeceutical space is timely, as biotechnology innovations continue to drive market growth.
Under the terms of the agreement, BioRestorative will provide Cartessa with a minimum quantity of finished vials of their inaugural cell-based biologic commercial product each year. This product, sold under the brand Chronos ExoCR, is produced in an ISO-7-certified clean room and includes a secretome of exosomes, proteins, and growth factors aimed at reducing fine lines and wrinkles.
Gabe Lubin, founder and CEO of Cartessa, expressed enthusiasm for the collaboration, stating that the partnership aligns with their commitment to bringing non-invasive technologies to aesthetic providers. The companies may also explore opportunities to expand their collaboration to include additional cell-based biologic products for domestic and international markets.
BioRestorative's CEO, Lance Alstodt, highlighted the strategic nature of the agreement with Cartessa, indicating it validates their cell-based biologics platform and marks a significant step towards building a strong commercial foundation.
Alstodt also noted that BioRestorative ended 2023 with a financial cushion, including $11.1 million in cash, cash equivalents, and investments, as well as net proceeds of $7.6 million from a warrant exchange private placement completed in February. This financial stability is expected to provide the company with a cash runway into 2025 and reduce reliance on capital markets.
This move is part of BioRestorative's broader strategy to establish a foothold in the medical aesthetics market, a space also targeted by pharmaceutical giants like AbbVie (NYSE:ABBV), Cynosure, and Sisram Medical. The agreement is based on a press release statement.
InvestingPro Insights
BioRestorative Therapies Inc. (NASDAQ:BRTX) has recently made a strategic move to enter the aesthetics market through a partnership with Cartessa Aesthetics. Despite the optimism surrounding this venture, InvestingPro data and tips provide a more nuanced view of the company's financial health and market performance.
InvestingPro Tips highlight that while BioRestorative holds more cash than debt on its balance sheet, analysts are concerned about the company's rapid cash burn and do not expect profitability this year. With a forecasted sales decline in the current year, the company's financial prudence will be critical for sustaining operations.
Moreover, the stock has experienced significant volatility and has underperformed over the past decade, year, and five years, with no dividend payments to shareholders. For a more comprehensive list of insights, investors can find an additional 11 InvestingPro Tips on BioRestorative Therapies Inc. at https://www.investing.com/pro/BRTX.
From the InvestingPro Data, we can observe that BioRestorative has a market cap of $9.21 million, with a negative P/E ratio of -0.64 for the last twelve months as of Q4 2023. The revenue growth for the same period was 21.7%, which is a positive sign, but it's important to note the substantial operating loss of $15.22 million, reflecting challenges in achieving operational efficiency.
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