Baird Medical Investment Holdings Limited (NASDAQ: BDMD) announced that it has secured a dedicated manufacturing facility in the United States, a move that will allow the company to produce its microwave ablation (MWA) devices and related components domestically. The new plant, located in California, is a joint venture with MPS Medical, a California‑based manufacturer that operates a 30,000‑square‑foot facility featuring a 3,000‑square‑foot class‑8 cleanroom and an 18,000‑square‑foot temperature‑controlled warehouse. The partnership gives Baird Medical immediate access to FDA‑registered, ISO‑certified production capacity that can be ramped up as demand grows.
The U.S. base represents a strategic shift from an export‑focused model to a more integrated global supply chain. By producing MWA systems locally, Baird Medical can cut lead times, lower logistics costs, and reduce currency and regulatory exposure that come with overseas manufacturing. The facility is intended to support the company’s planned expansion into the U.S., European Union, and Southeast Asian markets, and to accelerate future research and development activities by providing a nearby platform for rapid prototyping and testing.
Financially, Baird Medical reported a gross profit margin of 86.94% in the most recent reporting period, a figure that reflects the high‑margin nature of its MWA technology. However, the company remains unprofitable, posting a net loss of $11.29 million for the first half of 2025 versus a net income of $4.33 million a year earlier. Revenue for the same period fell to $7.96 million from $13.14 million a year ago, underscoring the company’s ongoing challenge of scaling sales while managing the costs of rapid expansion. In 2024, revenue rose 17.74% to $37.04 million, and earnings increased 18.09% to $12.45 million, indicating that while top‑line growth is accelerating, profitability remains a work in progress.
Baird Medical’s U.S. presence is already significant: its MWA system and needles are used in more than 30 hospitals across the United States, including Mayo Clinic and Columbia University Medical Center. The company received FDA 510(k) clearance for its MWA system and needles in November 2023, a regulatory milestone that opened the U.S. market. The new MPS‑backed facility will enable the company to meet the growing demand for minimally invasive tumor‑treatment solutions, which analysts estimate could capture a $1.6 billion opportunity in the U.S. alone.
Management has emphasized the importance of the U.S. base for both market penetration and product development. Mark Saxton, recently appointed CEO of Baird Medical’s U.S. subsidiary, said the company is “focused on accelerating market adoption in the United States while simultaneously investing in next‑generation MWA technologies.” He added that the new facility will shorten the time from prototype to commercial launch, allowing the company to respond more quickly to clinical needs and regulatory changes.
The announcement signals a bold step toward global competitiveness, but it also highlights the company’s current financial headwinds. While the U.S. plant will reduce operational costs and improve supply‑chain resilience, Baird Medical must continue to grow revenue and manage the costs associated with scaling production and expanding into new markets. The company’s high gross margin suggests strong pricing power, yet the ongoing net losses and declining revenue in the first half of 2025 indicate that profitability will depend on sustained demand growth and efficient cost management. Overall, the U.S. manufacturing base positions Baird Medical to better serve its existing U.S. customer base, accelerate R&D, and pursue strategic growth in key international markets.
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