Daxor Corporation (DXR) is the global leader in blood volume measurement technology, providing revolutionary solutions that are transforming patient care across a wide range of medical specialties. With its proprietary BVA-100 Blood Volume Analyzer and Volumex diagnostic injection kit, the company has developed a highly accurate, rapid, and non-invasive system for precisely determining a patient's total blood volume, red cell volume, and plasma volume.
Business Overview and History
Daxor Corporation has a rich history dating back to its incorporation in New York State as Iatric Corporation in May 1971. Initially focused on cryobanking services, the company underwent several name changes in its early years. In October 1971, it became Idant Corporation, and in May 1973, it finally adopted the name Daxor Corporation.
The company's journey towards becoming a leader in blood volume measurement technology began in the late 1980s when it shifted its focus to the development of the BVA-100 Blood Volume Analyzer. This innovative instrument, which rapidly and accurately measures human blood volume, has been Daxor's primary focus for the past 16 years.
In addition to its blood volume measurement technology, Daxor continues to offer cryobanking services through its wholly-owned subsidiary, Scientific Medical Systems. These services include blood storage and semen storage, the latter provided through Idant, a subsidiary of Scientific Medical Systems.
To support its ongoing research and development efforts, Daxor owns and operates the Daxor Oak Ridge Operations (DORO) facility in Oak Ridge, TN. This facility is responsible for manufacturing, testing, and developing next-generation models of the BVA-100, ensuring that Daxor remains at the forefront of blood volume measurement technology.
The company's innovative approach to blood volume measurement has addressed a significant unmet need in the medical community. Traditionally, clinicians have relied on inaccurate proxy measures, such as hemoglobin and hematocrit levels, to assess a patient's fluid status. In contrast, Daxor's BVA-100 system provides a 98% accurate, rapid, and convenient method for directly measuring a patient's total blood volume, enabling healthcare providers to make more informed decisions and deliver optimal care.
Business Segments
Daxor Corporation operates in two main business segments: Equipment Sales and Related Services, and Cryobanking and Related Services. Additionally, the company reports a third segment called Investment Activity, which is not considered an operating segment.
Equipment Sales and Related Services Segment: This segment focuses on the development and marketing of the BVA-100 Blood Volume Analyzer and the Volumex diagnostic injection kit. Revenue in this segment includes equipment sales, equipment rentals, equipment delivery fees, BVA-100 kit sales, and service contract revenues.
Cryobanking and Related Services Segment: Through its wholly-owned subsidiary, Scientific Medical Systems, Daxor engages in cryobanking of human blood and semen through its Idant Laboratories division. This segment provides storage fees associated with cryobanked blood and semen specimens, as well as related laboratory services and handling fees.
Investment Activity Segment: While not considered an operating segment, Daxor reports investment activity as a separate business unit. This includes all earnings, gains, losses, and expenses related to the company's investment portfolio, which consists primarily of common and preferred stocks of utility companies.
Financial Performance and Ratios
Over the past five years, Daxor has reported mixed financial results, with the company's operating division generating substantial revenue growth, offset by ongoing investment in research and development, as well as marketing efforts to drive broader adoption of the BVA-100 system.
For the fiscal year ended December 31, 2024, Daxor reported unaudited operating revenue of $2.13 million, representing a 116.5% increase over the prior year. This impressive growth was driven by a 60.1% year-over-year increase in the number of Volumex kits sold, as well as the addition of 12 new customer accounts, including five that purchased the BVA-100 analyzer system.
Despite the strong revenue performance, Daxor reported a net loss of $536,330 for the year, primarily due to ongoing research and development expenses of $1.59 million, as well as selling, general, and administrative costs of $294,190. The company's operating cash flow for the year was $25,690, while free cash flow was also positive at $25,690.
As of December 31, 2024, Daxor reported net assets of $36.79 million, or $7.25 per share, compared to $34.01 million, or $7.08 per share, at the end of the prior year. The company's balance sheet remains strong, with a debt-to-equity ratio of 0.0, reflecting its conservative capital structure and financial discipline.
Daxor's financial ratios paint a mixed picture. The company's gross profit margin of 100% is impressive, reflecting the high-margin nature of its diagnostic products. However, its operating profit margin of -4.66% and net profit margin of 10.94% highlight the ongoing investments required to drive the adoption of its technology.
The company's asset turnover ratio of 0.0042 is relatively low, reflecting the capital-intensive nature of the medical device industry. However, Daxor's return on assets of 4.61% and return on equity of 4.93% suggest that the company is generating reasonable returns on its invested capital.
Operational Highlights and Strategic Initiatives
Daxor has made significant strides in expanding the adoption and utilization of its BVA-100 system across various medical specialties, including cardiology, critical care, nephrology, and hematology. The company has successfully partnered with leading healthcare institutions, such as the Cleveland Clinic, Mayo Clinic, and NYU Medical Center, to drive clinical research and demonstrate the value of its technology.
In 2024, Daxor signed 12 new customer accounts, including five that purchased the BVA-100 analyzer system. The company has also expanded its footprint in the military and government sectors, securing a $2.5 million contract from the U.S. Department of Defense and additional funding awards from Launch Tennessee and the National Institutes of Health totaling over $350,000.
Daxor's strategic focus on product innovation has yielded significant progress. The company recently completed a multicenter study to validate its next-generation BVA-100 analyzer, which features improved speed, simplicity, and point-of-care capabilities. Daxor plans to submit a 510(k) application to the FDA for this groundbreaking device, with the goal of accelerating its market approval and commercial rollout.
Furthermore, Daxor has made key strategic acquisitions to strengthen its position in the market. In 2024, the company entered into an agreement to acquire the exclusive worldwide rights and intellectual property to manufacture its Volumex injection kit and a new radiopharmaceutical drug, Glofil, which measures glomerular filtration rate. These acquisitions are expected to be immediately accretive to Daxor's earnings and cash flow, as the company brings the production of these critical components in-house.
Risks and Challenges
Daxor faces several risks and challenges that could impact its future performance. The company operates in a highly regulated medical device industry, and any delays or setbacks in the regulatory approval process for its products could hinder its growth and commercial success.
Furthermore, Daxor's business is dependent on the adoption and utilization of its BVA-100 system by healthcare providers. While the company has made significant inroads in partnering with leading medical institutions, continued market acceptance and reimbursement coverage from payers will be crucial for the long-term success of its technology.
The company also faces competition from indirect and surrogate measures of blood volume, such as hemoglobin and hematocrit testing, as well as other invasive techniques like cardiac catheterization. Daxor's ability to effectively communicate the clinical and economic benefits of its precise blood volume measurement technology will be essential in driving wider adoption.
Lastly, Daxor's reliance on a single individual, Dr. Joseph Feldschuh, for its investment decisions and scientific expertise presents a key risk. The loss of Dr. Feldschuh's services could have a material impact on the company's operations and financial performance.
Financials
Daxor's financial performance has shown significant improvement in recent years. The company's operating revenue for the fiscal year 2024 reached $2.13 million, representing a substantial 116.5% increase compared to the previous year. This growth was primarily driven by a 60.1% year-over-year increase in Volumex kit sales and the addition of new customer accounts.
Despite the strong revenue growth, Daxor reported a net loss of $536,330 for the year, mainly due to ongoing investments in research and development ($1.59 million) and selling, general, and administrative expenses ($294,190). However, the company's operating cash flow and free cash flow remained positive at $25,690 each, indicating improved operational efficiency.
Historical financial data shows that in the fiscal year ended December 31, 2011, equipment sales and related services accounted for $1.13 million in revenue, down from $1.24 million in 2010. The decrease was due to a decline in the number of BVA-100 kits sold, which dropped from 3,150 in 2010 to 3,030 in 2011, a decrease of 3.8%. The company also did not sell any blood volume analyzers in 2011, compared to one sale in 2010 for $65,000. Gross profit margin on equipment sales and related services was 54.6% in 2011, compared to 53.4% in 2010.
Revenues from cryobanking and related services were $321,100 in 2011, down 4.7% from $336,990 in 2010. The decrease was primarily due to a reduction in revenue from semen storage and analysis, which declined 8.1% to $230,060 from $250,440 in the prior year. Gross profit margin in the cryobanking segment was 88.6% in 2011 compared to 89.4% in 2010.
In the investment activity segment, Daxor reported net realized gains on the sale of investments of $33,190 in 2011, down significantly from $13.51 million in 2010. The company also recorded a loss of $8.50 million from marking to market its short positions in options and equity securities, compared to a loss of $1.53 million in the prior year. Dividend income from the investment portfolio was $2.24 million in 2011, relatively flat compared to $2.23 million in 2010.
Liquidity
Daxor maintains a strong liquidity position, with net assets of $36.79 million as of December 31, 2024. This represents a value of $7.25 per share, an increase from $7.08 per share at the end of the previous year. The company's conservative financial approach is reflected in its debt-to-equity ratio of 0.0, demonstrating a solid balance sheet and financial stability.
The company's liquidity is further supported by its positive cash flows and the potential for increased revenue from its expanding customer base and product innovations. With ongoing investments in research and development, Daxor is well-positioned to capitalize on future growth opportunities while maintaining a strong financial foundation.
Future Outlook and Guidance
Daxor's management has provided positive guidance for the company's future performance. The company met its goal from 12 months prior of achieving cash flow breakeven for their operating division during the first quarter of 2025, not including costs related to stock-based compensation, depreciation, amortization or CapEx.
Revenue in the first two months of 2025 is over 100% higher than the same two months in 2024, indicating continued strong momentum and growth. The company has already signed 3 new accounts in the first two months of 2025, building on the 12 new accounts signed in 2024.
Daxor plans to imminently submit their 510(k) submission for their next-generation blood volume analyzer to the FDA for a 90-day review period, after completing additional testing data requested by the FDA. The company expects significant interest and uptake of their next-generation analyzer upon approval, as it will offer increased speed, access, accuracy and convenience compared to their current lab-based system.
The recent acquisitions of exclusive rights to manufacture Volumex and Glofil diagnostic radiopharmaceuticals are expected to be immediately cash flow positive and accretive to earnings, further strengthening Daxor's financial position and growth prospects.
Conclusion
Daxor Corporation is at the forefront of a revolutionary transformation in patient care, leveraging its proprietary blood volume measurement technology to address a significant unmet need in the medical community. With its strong financial position, growing customer base, and innovative product pipeline, the company is well-positioned to capitalize on the growing demand for precise fluid management solutions across a range of medical specialties.
As Daxor continues to expand the adoption of its BVA-100 system and introduce its next-generation analyzer, the company has the potential to become an indispensable partner to healthcare providers, ultimately improving patient outcomes and driving long-term value for its shareholders. The recent financial performance, strategic acquisitions, and positive guidance from management all point towards a promising future for Daxor Corporation in the medical technology sector.