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MDXG News
MDXG Events
MiMedx Enters $25 Million License Agreement with Competitor
MiMedx announced that it has entered into a license agreement with a wound care competitor that resolves allegations of infringement of MiMedx's patents. The licensee will pay MiMedx a total of $25M in five equal installments of $5M. The first installment has been received, and the four remaining installments will be paid annually on the anniversary of the signing date. "This agreement underscores the strength and value of the intellectual property portfolio MIMEDX has built since its inception. We believe our expertise in placental biologics is unmatched, and this agreement recognizes the innovation behind our product portfolio and pipeline. It also provides MIMEDX with meaningful, recurring cash over the next several years. We will continue to vigorously protect our intellectual property while investing in further innovation and differentiation in the marketplace," said Joseph Capper, CEO of MiMedx.
MiMedx Group Court Ruling Supports Axiofill Classification
MiMedx Group announced that the U.S. District Court for the Northern District of Georgia issued a favorable ruling in the company's litigation challenging the FDA regulatory classification of Axiofill, the company's human placental-derived extracellular matrix particulate product. The court vacated FDA's determination that Axiofill is not a Section 361 HCT/P because it is more than minimally manipulated and FDA's determination that Axiofill should be classified as a biological product rather than a medical device. The court remanded both matters to FDA for further consideration consistent with its order.
MiMedx to Acquire Sanara MedTech for $35 per Share
MiMedx Group (MDXG) and Sanara MedTech (SMTI) announced that they have entered into a definitive merger agreement under which MiMedx will acquire all of the outstanding shares of Sanara in a cash and stock transaction valued at $35 per Sanara share with a total enterprise value of approximately $350M. Under the terms of the agreement, Sanara shareholders will receive $33 in cash and 0.4735 shares of MiMedx common stock for each share of Sanara common stock they own, which represents a value of $2 per share, calculated based on the average closing price of MiMedx common stock of $4.22 for the last five consecutive trading days through and including July 28. The merger consideration represents a premium of 46% to Sanara's 30-day volume weighted average share price as of July 28. MiMedx expects to finance the cash portion of the transaction through a combination of cash on hand and a new, committed debt financing in the form of a $300M term loan, which has been secured with Hayfin Capital Management. In connection with the execution and delivery of definitive documentation with respect to the debt financing by Hayfin, MiMedx's existing credit agreement will be terminated and all amounts outstanding will be repaid in full. The transaction is expected to nearly double MiMedx's surgical revenue and is expected to be immediately accretive to MiMedx's revenue growth rate, gross margin and adjusted EBITDA margin. The company anticipates over $20M in run-rate cost synergies. On a combined basis, 2027 total revenue is expected to be well in excess of $400M with an adjusted EBITDA margin expected to be over 20%. The transaction has been unanimously approved by the board of directors of both companies and is expected to close by the end of the year, subject to approval by Sanara shareholders, the receipt of required regulatory approvals and other customary closing conditions. Centerview Partners is serving as exclusive financial advisor to MiMedx; Greenberg Traurig is serving as legal advisor. Truist Securities is serving as exclusive financial advisor to Sanara; Alston & Bird is serving as legal advisor. Joseph Capper, MiMedx CEO, said, "We are thrilled to announce the planned combination with Sanara MedTech and look forward to welcoming their team to the MIMEDX family in the near future. Over the last several years, MIMEDX has demonstrated the ability to drive strong, double-digit growth in surgical end markets. With Sanara, we will accelerate this effort and meaningfully expand our reach across several subspecialties. On a combined basis, 2027 total revenue is expected to be well in excess of $400 million with an adjusted EBITDA margin expected to be over 20%."
MiMedx Reports Q2 Revenue of $64.36M
Reports Q2 revenue $64.36M, consensus $63.46M. Joseph H. Capper, MiMedx Chief Executive Officer, commented, "During the second quarter, we delivered another strong performance in our Surgical franchise, with 15% year-over-year revenue growth balanced across our sheet and particulate products. Our sustained momentum in several Surgical settings represents a meaningful, long-term growth opportunity for the Company, and we are focused on expanding into other procedures."
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