Bone Biologics Corporation (BBLG - Get Rating) in Burlington, Mass., is a medical device company that focuses on bone regeneration in spinal fusion using recombinant human protein. The company’s NELL-1/DBX is a combination product. It is an osteostimulative recombinant protein that provides target-specific control over bone regeneration. BBLG’s platform technology has applications in delivering enhanced outcomes in the surgical specialties of spinal, orthopedic, general orthopedic, plastic reconstruction, neurosurgery, interventional radiology, and sports medicine.

On March 7, 2022, BBLG announced a supply agreement with MTF Biologics for demineralized bone matrix (DBM). BBLG CEO Jeff Frelick, said: “This DBM supply agreement is an important milestone that allows us to advance rhNELL-1 for the $3 billion spine fusion market, with the goal of developing a product with compelling features and benefits versus existing commercial products.”

The demand for medical devices has been growing. Because the population is aging and lifestyle diseases are becoming prevalent, the demand for medical devices is expected to remain strong. According to a Fortune Business Insights report, the global medical devices market is expected to grow at a 5.4% CAGR to $657.98 billion in 2028.

BBLG shares have declined 20.1% in price year-to-date and 85% over the past year to close the last trading session at $2.81. They are currently trading 85% below their 52-week high of $18.75, which they hit on March 19, 2021.

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Here is what could influence BBLG’s performance in the coming months:

Disappointing Financials

BBLG’s total operating expenses for its fiscal year ended Dec.31, 2021, increased 33.5% year-over-year to $1.10 million. The company’s net loss came in at $1.61 million, compared to a $1.82 million loss in the prior year. Also, its loss per share was  $0.35, compared to a $0.63 loss per share in the prior year.

Unfavorable Analysts Estimates

Analysts expect BBLG’s EPS for its fiscal year 2022 to decline 137.1% year-over-year to negative $0.83. And its EPS for the quarter ending March 31, 2022, is expected to remain negative.

POWR Ratings Reflect Uncertainty

BBLG has an overall D rating, which equates to Sell in our POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight distinct categories. BBLG has a D grade for Momentum, which is consistent with its 16.3% loss over the past three months and 85% decline over the past nine months.

BBLG is ranked #126 of 166 stocks in the D-rated Medical – Devices & Equipment industry. Click here to access BBLG’s growth, Value, Stability, Sentiment, and quality ratings.

Bottom Line

BBLG is currently trading below its 100-day and 200-day moving averages of $3.02 and $9.76, respectively, indicating a downtrend. Despite the medical devices industry’s bright prospects, not all stocks are well poised to benefit. So, we think it could be wise to avoid BBLG now due to its poor financials and bleak growth prospects.

How Does Bone Biologics Corporation (BBLG) Stack Up Against its Peers?

BBLG has an overall POWR Rating of D, which equates to a Sell rating. Therefore, one might want to consider investing in other Medical – Devices & Equipment stocks with an A (Strong Buy) or B (Buy) rating, such as FONAR Corporation (FONR - Get Rating), Natus Medical Incorporated (NTUS - Get Rating), and Merit Medical Systems, Inc. (MMSI - Get Rating).

Click here to checkout our Healthcare Sector Report for 2022

BBLG shares were trading at $2.90 per share on Wednesday morning, up $0.09 (+3.20%). Year-to-date, BBLG has declined -17.61%, versus a -3.03% rise in the benchmark S&P 500 index during the same period.

About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...

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