Donor organs make the difference between life and death for thousands of people every year. But there are two big problems. First, far too few donor organs make it to the intended recipients in shape to be used. Second, too many medical issues occur after organ transplants.

Enter TransMedics Group (TMDX 0.38%). The company's Organ Care System (OCS) is transforming organ transplantation involving lungs, hearts, and livers by increasing the utilization of donor organs and improving post-transplant clinical outcomes.

Why buy and hold TransMedics Group stock forever?

Cold storage was the standard of care for decades in transplanting donor organs. OCS dramatically improves the utilization of donor organs compared to cold storage using a technology called warm perfusion, which keeps organs alive during transport. It also significantly reduces severe post-transplant complications. And it's the only warm perfusion platform for multiple organs approved by the U.S. Food and Drug Administration (FDA).

Arguably the best reason to buy TransMedics Group stock is that the company has built the proverbial better mousetrap with OCS. However, the most compelling reason to buy and hold this stock forever is that TransMedics, which turned its first annual profit in 2024, is well-positioned to dominate the organ transplant market for decades.

In addition to addressing the medical drawbacks associated with cold storage, TransMedics also tackles the logistical challenges affecting the organ transplant industry. Its National OCS Program provides a turnkey solution that includes organ procurement and transportation. TransMedics even owns the only aviation fleet dedicated to organ transplants. The company isn't just serving the organ transplant market; TransMedics is expanding it.

One key concern

A short-seller alleged in January 2025 that TransMedics committed billing fraud and didn't report device failures. This led to a class action lawsuit against the company and a request that the FDA suspend the approval of OCS.

A law firm and a forensic accounting firm conducted an independent review and found "no evidence of misconduct." TransMedics also submitted a comprehensive response to the FDA refuting what it called "unfounded and egregious claims." Assuming the company moves past these issues, its future looks bright.