By Tom Kerr, CFA
NASDAQ: BDMD
READ THE FULL BDMD RESEARCH REPORT
Founded in 2012 in Guangzhou, China, Baird Medical Investment Holdings (NASDAQ: BDMD) is a leading microwave ablation ("MWA") medical device manufacturer and provider for the minimally invasive treatment of benign and malignant tumors, including thyroid nodules, liver cancer, lung cancer, and breast lumps.
Baird Medical was the first company to obtain a Class III medical device registration certificate for MWA devices specifically indicated for thyroid nodules in China. The company ranks first among MWA medical device providers in the treatment of thyroid nodules and breast lumps in terms of sales and sales volume of microwave ablation needles, while also holding the position of the 3rd largest MWA medical device provider in China by revenue. The company is currently making a concerted effort to expand into the U.S. and other markets around the world.
Microwave ablation is a minimally invasive procedure that uses microwave energy to generate intense heat, essentially destroying tumor cells. It works on both benign and malignant tumors, and compared to traditional options like surgery, chemotherapy, or radiation, it's considered safer, easier, and comes with faster recovery and fewer complications. A key advantage is cancer prevention, as some benign tumors can turn malignant over time ("cancer progression"), with thyroid nodules at a rate of 5.0% and breast lumps at a rate of 7.0%. Microwave ablation can stop that from happening, which is one of the reasons patients with benign tumors often opt for removal rather than waiting to see what happens.
Baird primarily manufactures microwave ablation equipment and needles. The current product set includes ablation devices approved for liver cancer and thyroid nodule treatment, plus both long and fine ablation needles. The company holds two Class III and one Class II medical device registration certificates in China. In 2023, the company also obtained FDA 510(k) Class II clearance for MWA in soft tissue ablation.
In China, the company markets its products to hospitals through a combination of direct sales, delivery partners, and third-party distributors. By leveraging distributors' established market presence and distribution networks, the company has been able to expand its reach more efficiently while reducing the time and expense associated with building a solely direct-sales channel.
Supported by a well-developed distribution network and strong relationships with medical associations and healthcare professionals, the company's hospital customer base in China grew from approximately 430 hospitals in 2022 to 505 in 2023, 579 in 2024, and 614 as of June 30, 2025. Growth has also occurred among top-tier Grade III hospitals, with the number of customers increasing from roughly 250 in 2022 to 310 in both 2023 and 2024, before reaching 329 during the first half of 2025.
Revenues were $37.0 million in 2024 and declined to $22.5 million in 2025 due to sector government policy changes in China. We expect revenues to rebound to over $30 million in 2026. Cash balances were $0.6 million as of 12/31/25.
The company’s IPO occurred in 2024, and shares began trading under the ticker symbol "BDMD" on the Nasdaq on October 2, 2024. The current market capitalization is approximately $47.7 million.
The company recently relocated its official headquarters to New York City, which follows the December 2025 appointment of Mark Saxton as CEO of Baird Medical's U.S. subsidiary to lead domestic operations, commercial expansion, and market development.
Commercial scale-up in the U.S. is a key growth driver for the company. Baird has a funded, staged plan to build commercial scale in the U.S. The company’s U.S. growth strategy focuses on capturing the existing thyroid ablation market by targeting the approximately 349 physicians identified in claims data as billing for thyroid ablation with RFA, which serves as the best available proxy for current users of thyroid ablation technology. At the same time, Baird aims to drive long-term growth by converting a portion of the much larger surgical market, with roughly 173,000 benign thyroid surgeries performed annually that could be eligible for ablation.
Our primary valuation tool utilizes a Discounted Cash Flow process, which arrives at a target valuation of $4.00 per share. Our target price may be conservative as it incorporates a high discount rate.
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