Biomerica reports Q3 results as Medicare $300 rate anchors commercial pivot

Biomerica (NASDAQ:BMRA) reported its third-quarter fiscal 2026 financial results today, emphasizing a strategic shift toward higher-margin diagnostic therapies despite a slight decline in top-line revenue.

The period, which ended February 28, 2026, was marked by significant regulatory milestones for the company’s flagship inFoods® IBS product and accelerating traction in European markets.

A primary highlight of the quarter was the implementation of a $300 national Medicare payment rate for the inFoods® IBS test, effective January 1, 2026.

This pricing determination by the Centers for Medicare & Medicaid Services (CMS) establishes a clear reimbursement benchmark, which the company expects will expand patient access and serve as a foundation for negotiations with private insurers.

The inFoods® IBS platform identifies specific food triggers that exacerbate symptoms in patients with irritable bowel syndrome.

While consolidated net sales for the quarter fell to $0.99 million, compared to $1.12 million in the prior year, the decline was largely attributed to a planned transition away from lower-margin contract manufacturing.

Conversely, the company’s international footprint expanded significantly, with European revenue rising 45% year-over-year.

This growth was bolstered by the first commercial orders for the company’s H. pylori test (Hp Detect™) from one of Europe's largest clinical laboratory chains following MHRA registration in the United Kingdom.

Meanwhile, operational discipline remained a core focus, with research and development (R&D) expenses decreasing 24% year-to-date.

This reduction reflects the company’s reallocation of resources from product development toward active commercialization and market access.

Despite these efforts, Biomerica reported a net loss of $1.31 million for the quarter, or $0.44 per share, as it continues to navigate the costs associated with its multi-product launch.

The company also highlighted recent real-world data showing that nearly 60% of IBS patients using the inFoods® therapy achieved clinically meaningful reductions in abdominal pain.