Milestone Scientific partners with Axial Biologics

ROSELAND, N.J. - Milestone Scientific Inc. (NYSE:MLSS), known for its computerized drug delivery technology, has entered a strategic partnership with Axial Biologics to distribute its CompuFlo® Epidural System in New Jersey, Texas, and Florida. This collaboration comes on the heels of Milestone Scientific receiving a Medicare Part B Physician payment rate for the CompuFlo® Epidural System.

The Medicare Price Assignment, facilitated by Novitas Solutions, Inc. and First Coast Service Options Inc., signifies a pivotal development for the CompuFlo® technology, promising wider access and acceptance, especially among Medicare recipients in the pain management community.

Arjan Haverhals, CEO and President of Milestone Scientific, emphasized the strategic nature of the partnership, highlighting Axial Biologics' extensive network and expertise in pain management as crucial to expanding the CompuFlo® Epidural System's market presence. Haverhals anticipates that this targeted approach will expedite the system's penetration and uptake, ultimately driving growth and improving patient outcomes.

Ryan Paul, CEO of Axial Biologics, expressed honor in partnering with Milestone Scientific and optimism about the CompuFlo® Epidural System's potential impact. Paul pointed to the Medicare Price Assignment as a significant market disruptor due to the system's safety and economic advantages.

The CompuFlo® Epidural System is designed to accurately and objectively identify the epidural space, aiming to reduce the risk of complications associated with traditional methods. Its recent Medicare Price Assignment is projected to support its broader adoption across the United States.

Milestone Scientific, focusing on technology-driven medical research and development, holds patents for its innovative injection technologies applied in medical and dental fields. The company's proprietary technology strives to enhance injection precision, efficiency, and patient safety.

This partnership announcement is based on a press release statement, which also includes forward-looking statements subject to risks, uncertainties, and assumptions. These could affect the actual outcomes and financial performance of Milestone Scientific. The company advises caution, as future results may differ from current expectations due to various factors, including economic conditions and regulatory changes.

In other recent news, Milestone Scientific Inc. reported mixed Q1 results, with a decline in revenue to $2.2 million from $2.6 million in the same period of the previous year. However, the company saw a 31% increase in e-commerce sales and improved gross margins due to a shift to a direct sales model. Milestone Scientific confirmed the board and auditors at their 2024 Annual Meeting of Stockholders, ensuring continuity and adherence to compliance standards.

The company also announced the receipt of Notices of Allowance for key patent applications from both the U.S. Patent and Trademark Office and the European Patent Office. These patents pertain to a device and method for needle and catheter location using correlation analysis, and a device and method for identification of a target region, both of which are set to strengthen the company's intellectual property portfolio.

CEO Arjan Haverhals discussed growth potential in the U.S. and international markets, particularly Brazil, and mentioned the company's target of a 20% share of the epidural market. These recent developments coincide with the company's active pursuit of reimbursement for its CompuFlo Epidural System and its focus on growing revenues through direct sales and marketing activities.

Despite a decrease in international revenue, Milestone Scientific's e-commerce platform, launched in January 2023, generated $1.3 million in revenue for the quarter.

InvestingPro Insights

As Milestone Scientific Inc. (NYSE:MLSS) advances its market presence through strategic partnerships and Medicare Price Assignments, investors and industry observers are closely monitoring the company's financial health and stock performance.

According to InvestingPro data, Milestone Scientific currently holds a market capitalization of approximately $74.91 million. Despite analysts' expectations that the company will not be profitable this year, MLSS has demonstrated a strong return over the last month, with a 37.05% increase, and a notable six-month price total return of 41.37%.

The company's Price / Book ratio, a metric often used to compare a firm's market value to its book value, stands at a high 9.63 as of the last twelve months. This suggests that the market may be valuing the company's assets optimistically, or that investors are willing to pay a premium for its shares.

Meanwhile, the company's revenue growth for the same period was 8.92%, indicating a modest increase in sales. However, it's important to note that the company's revenue growth on a quarterly basis experienced a decline of 13.43%, reflecting the challenges and volatility that can affect business performance in the short term.

InvestingPro Tips for MLSS reveal key insights: the company's liquid assets exceed its short-term obligations, suggesting a solid liquidity position, and it operates with a moderate level of debt, which may provide some financial flexibility.

Moreover, Milestone Scientific does not pay a dividend to shareholders, which is common for companies focused on growth and reinvestment. For investors seeking a deeper analysis of Milestone Scientific's performance and prospects, InvestingPro offers additional tips, with a total of 9 available at https://www.investing.com/pro/MLSS.

These financial metrics and InvestingPro Tips are essential for stakeholders to consider in light of Milestone Scientific's recent developments and future potential in the medical technology sector.

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