Dear Shareholders and Friends,
Thank you for your continued interest and support in U.S. Stem Cell, Inc.’s recent developments and achievements. As we continue to grow, our main focus continues to be our mission of discovering, developing, and commercializing cell-based regenerative therapies. As a result, we’ve had a summer full of accomplishments and events which we would like to share with you here.
First and foremost, please join us in welcoming our newest Senior Vice President of Sales, Phil Posa. Phil’s most recent role as Executive and CEO at Stem Cell Centers of Idaho, combined with his 30+ years’ extensive experience in the regenerative/medical device & pharmaceutical industries including Abbott Pharmaceuticals, make him the perfect addition to our senior management at a time when we are focused on expansion and diversification company wide. While at Stem Cell Centers of Idaho, Phil restructured patient flow which allowed the company to identify ways to improve conversion rates, service and best possible outcomes. The results helped bring sales to an all-time monthly high, resulting in a new benchmark for the company’s profitability and the launch on average of one clinic per month. It also launched regenerative medicine into traditional insurance reimbursement medical practices, thereby converting them into ‘white glove’ concierge care cash practices.
We are certain Phil’s proven expertise and background are an incredible asset to our team, and we are looking forward to growth in our domestic and international markets under his leadership and guidance. You can read more about Phil’s background here.
We are also delighted to announce that during the second quarter of this year we achieved the benchmark of increased revenue for our tenth consecutive quarter, up 31% from the same quarter last year from $1.39m to $1.82m. Our profit margin also increased, from 67% in the second quarter of 2017 to 69% for the second quarter of 2018. Additionally, our gross profit rose 35% from the second quarter of 2017, increasing from $934k to $1.25m.
This has been a period of continued growth for the last two consecutive years. We believe this may be due in part to the increased awareness of stem cell therapy amongst prospect patients in the US and abroad. Furthermore, an increase in market demand can be attributed in part to patients seeking an alternative to opioids, as well as physicians looking to advance their skill sets.
In June our Chief Science Officer, Dr. Kristin Comella, presented at the Fifth Annual Cell Surgical World Conference in Beverly Hills at the Beverly Hilton Hotel. Dr. Comella, who is well recognized for her unparalleled dedication and leadership in the development and application of clinical practices in the world of autologous stem cell therapies, presented to an audience of doctors from around the world. Her enthusiasm was well received as many continue to admire her for her persistence, expertise and vigor in advancing the narrative of autologous stem cell therapy, and attendees at the conference were explicit and open in expressing their admiration.
On the scientific front, we recently made an exciting breakthrough in autologous stem cell therapy from fat tissue by successfully repairing the torn meniscus of a 56-year-old patient. Meniscal injuries are recognized as the most common knee injury among Americans and without this regenerative therapy are often only repairable by surgery. According to the scientific paper by Dr. Comella published in the Journal of Medical Cases, the patient treated for chronic meniscus injury reported no adverse events in the 12 months following treatment, as well as expressing reduction in pain and an overall improvement in quality of life. Physicians confirmed a complete resolution via arthroscopic evaluation of the tear 9 months after treatment.
We are also pleased to announce we have launched participation in “Renewing our Heroes,” a charitable health initiative for civil service personnel that has been making USRM stem cell therapies and protocols accessible to first responders and those who voluntarily put their well-being on the line every day. Firefighters, paramedics, military officials, police officers and other civil-service professionals can now have access to medical care that otherwise may have been unattainable. It is an exciting indication that we are able to reach more Americans today than have ever had access to regenerative therapy in the past, and we are delighted that those who serve us now have access to a new standard of care.
Our dedication to making regenerative medicine the new health standard continues to be unwavering. As we progress, we invite you to learn more about the aforementioned events and milestones, as well as staying up-to-date with future announcements, by reading the press releases on our news page which can be found here.
Thank you again for your interest and ongoing support.
President and CEO