B. Riley starts Biote with Buy on horome replacement therapy potential

B. Riley initiated coverage of Biote with a Buy rating and $9 price target. Biote is a physician education and marketing company that has become the leading provider of hormone replacement therapy using a science-based, patient-customized model that is transforming the “healthy” aging wellness industry, the analyst tells investors in a research note. The firm says hormone-based drugs effective at enabling weight loss represent a potentially meaningful near-term opportunity to accelerate total addressable market expansion by converting new patients to the Biote HRT method and from fees associated with providing substantially more affordable compounded versions of these drugs. Riley expects Biote to deliver solid growth and a healthy EBITDA margin, potentially expanding above 30%.