Irvine-based Biomerica Inc., a company specializing in diagnostic solutions for gastrointestinal and inflammatory diseases, recently secured a $2.23 million private placement investment. This financing, which closed last month, is intended to support the company's operations, including future partnerships and acquisitions. Chief Executive Zack Irani, the company’s board of directors, and B. Riley Principal Capital all participated in the investment.
The investment follows Biomerica’s report on its fourth-quarter results, which concluded on September 1. During this period, the company saw its net sales increase by 17%, reaching $875,000. Concurrently, the net loss for the quarter narrowed by 27% to $1.5 million. The company attributed this sales growth to higher contract manufacturing activity and increased demand for its inFoods test. The inFoods test is an immunoassay designed to identify specific foods that trigger symptoms of irritable bowel syndrome (IBS), such as bloating and abdominal pain, using a blood sample.
Despite the positive quarterly performance, Biomerica’s full-year results presented a different picture. Annual sales declined by 18%, totaling $4.5 million. This decrease was primarily due to lower international retail activity, which the company linked to “uncertainties related to tariffs.” Biomerica shares, traded on Nasdaq under the ticker BMRA, reached a 52-week low of $1.45 on August 3 and are currently trading around $2.09, resulting in a market capitalization of $6.4 million.
Beyond its core product, Biomerica’s contract development and manufacturing organization (CDMO) business is emerging as another area of growth for the Irvine company. In May, Biomerica announced it had been selected by an undisclosed life sciences company for a $1.75 million contract. This three-year agreement involves the development of in vitro diagnostic assays, with all work to be performed at Biomerica’s facility here in Irvine. The company expanded its CDMO services last year to address rising demand, now covering the entire product development process from supply chain sourcing through manufacturing and assembly. Chief Executive Irani stated that while the “primary mission remains the commercialization of inFoods IBS,” the infrastructure built for inFoods is now generating revenue through the CDMO business.
The company is also actively expanding the reach of its inFoods test through new partnerships. In April, Biomerica announced collaborations with Phoenix Airmid Biomedical and CanAlt Health Labs to introduce the test to the Canadian market. An estimated five million Canadians are affected by IBS, making it a widespread condition in the country. According to Chief Executive Irani, Canada represents “one of the largest and most underserved IBS patient populations in the world,” and the inFoods platform is positioned to address this need. Under the new agreements, Phoenix Airmid Biomedical will serve as Biomerica's exclusive distributor in Canada, while CanAlt Health Labs will be responsible for conducting the inFoods testing and delivering results to physicians and patients across the nation.
Domestically, Biomerica has made strides in securing reimbursement for its inFoods test. The Centers for Medicare and Medicaid Services (CMS) have established a national payment rate of $300 for the test under the Clinical Laboratory Fee Schedule (CLFS). Separately, a Medicare Administrative Contractor has affirmed that the test qualifies for coverage on an individual, claim-by-claim basis. Biomerica intends to expand its Medicare billing operations to more than 200 physicians who currently offer or have previously offered the inFoods test on a cash-pay basis. This move aims to make the diagnostic solution more accessible to a wider patient population.
