Wound Care Shake-Up Propels Nuo Therapeutics' Triple-Digit Growth

HOUSTON, TX – May 14, 2026 – Nuo Therapeutics, a medical device company specializing in regenerative therapies, today announced explosive first-quarter growth, signaling a significant shift in the competitive landscape of chronic wound care. The company reported a staggering 169% increase in total revenues over the same period last year, a performance it attributes directly to a "dramatic" disruption in the market driven by recent changes in Medicare reimbursement policies.

The Houston-based firm, which trades on the OTCQB market, posted total revenues of approximately $1.3 million for the quarter ending March 31, 2026. This figure represents a 20% sequential increase over the fourth quarter of 2025 and was overwhelmingly driven by sales of its flagship Aurix System. In a sign of improving operational health, Nuo also significantly narrowed its net operating loss to approximately $446,000, a marked improvement from the $745,000 loss reported in the first quarter of 2025. The strong results, coupled with a newly secured $1 million in funding, suggest Nuo is successfully capitalizing on a pivotal moment of change within the advanced wound care sector.

A Market in Flux: Reimbursement Shifts Create Opportunity

The catalyst for Nuo's recent success appears to be a fundamental realignment of the economic incentives governing wound care treatment in the United States. Effective January 1, 2026, the Centers for Medicare & Medicaid Services (CMS) implemented significant policy updates that altered the payment methodologies for a category of products known as "skin substitutes" or Cellular and/or Tissue-based Products for wounds (CTPs).

For years, the market has been dominated by a wide array of these CTPs, which are often derived from allogeneic (human donor) or xenogeneic (animal) sources. While effective for many patients, some of these products carry a high price tag. The new CMS policies reflect a broader push toward value-based care, increasing scrutiny on the cost-effectiveness of various treatments. By adjusting reimbursement rates, CMS has effectively encouraged providers, particularly those in private physician office settings, to seek out more cost-efficient yet clinically effective alternatives.

This is precisely the environment where Nuo's technology is thriving. The company's Aurix System, an autologous platelet-rich plasma (PRP) gel, falls outside the traditional skin substitute category and presents a compelling value proposition. As reimbursement for some more expensive CTPs has tightened, the relative financial attractiveness of Aurix has grown, leading to what the company describes as "immediate and vigorous" interest from the provider community.

“Just over one year ago, Nuo issued our most recent press release and announced the exclusive private label distribution agreement with Smith+Nephew. It would be an understatement to describe the past 12 months and most particularly the first several months of 2026 in the advanced wound care market as anything other than dramatic,” commented David Jorden, Nuo’s Chief Executive and Financial Officer, in a statement. He noted that the disruption has created uncertainty for many but has positioned Aurix as a product that is "right for the time and the space."

The Aurix Advantage and a Powerful Partnership

At the heart of Nuo's strategy is the Aurix System, a biodynamic hematogel that harnesses a patient's own healing mechanisms. The point-of-care system works by isolating platelets from a small sample of the patient's blood and creating a PRP gel that is applied directly to a chronic wound. This autologous approach minimizes the risk of immune rejection or disease transmission associated with donor-derived products, a significant clinical advantage.

While the technology itself is innovative, Nuo's ability to capitalize on the current market opportunity is amplified by a critical strategic decision made in early 2025: an exclusive private label distribution agreement with Smith+Nephew, a global medical technology giant. Under this agreement, Smith+Nephew markets the Aurix technology under its own brand, granting Nuo access to a vast and established sales force and distribution network.

This partnership is a textbook example of symbiotic growth. For Nuo, a small company listed on the OTCQB venture market, building a commercial infrastructure to rival established players would be a monumental and costly undertaking. The Smith+Nephew alliance provides immediate market penetration and lends significant credibility to the Aurix technology. For Smith+Nephew, the private label product adds a cost-effective, innovative autologous therapy to its advanced wound management portfolio, perfectly timed to meet the new demands of the reimbursement environment. The more than 30% sequential growth in Aurix branded product revenues strongly suggests this partnership is effectively converting market interest into tangible sales.

Charting a Course to Profitability

While the top-line growth is impressive, Nuo's path to sustained profitability is still being paved. The Q1 results show promising progress in managing expenses, with the operating loss shrinking by 40% year-over-year even as the company supports a rapid sales ramp-up. This demonstrates strong operating leverage, where revenues are growing faster than the costs required to generate them.

To fuel this growth and bridge the gap to breakeven operations, Nuo recently entered into a Loan and Security Agreement, securing an initial $1.0 million in working capital. This injection of cash is vital for investing in inventory and supporting the increased sales activity driven by the Smith+Nephew partnership. However, it also adds to the company's liabilities, highlighting the delicate balance Nuo must maintain between investing in growth and managing its cash burn.

The company's position on the OTCQB market presents both challenges and opportunities. While this listing limits visibility and liquidity compared to major exchanges like NASDAQ, the recent performance could lay the groundwork for a potential future uplisting. Achieving such a goal would require a sustained track record of revenue growth, a consistent move toward profitability, and meeting the stringent financial and governance requirements of a major exchange.

As it navigates this period of rapid expansion, Nuo has committed to increased transparency. "With this financial results release, we are making the commitment to now regularly report on our progress beyond our periodic filings with the US Securities and Exchange Commission," Jorden stated. This promise of more frequent communication suggests management is confident in its trajectory and eager to build investor confidence as it seeks to solidify its position as a key player in the new era of wound care.