MDXG - MiMedx pulls plug on knee osteoarthritis regenerative medicine programs

2023-06-20 16:54:49 ET

MiMedx Group ( NASDAQ: MDXG ) said that it was pulling the plug on its knee osteoarthritis and regenerative medicine programs in order to focus on accelerating growth for its wound and surgical business.

The wound care products company, which specializes in tissues for skin grafts, said that it was suspending activities for the knee osteoarthritis program and disbanding its regenerative medicine unit. It expects the cuts to yield annualized savings of around $25M.

MiMedx said that it decided to suspend the knee osteoarthritis program in part because of "changes in the market landscape" coupled with an "inability to forecast with any precision areas of risk, including regulatory uncertainty" and the program's capital needs.

The company said the move would result in a one-time wind-down expenses of around $5M. It also raised its 2023 net sales forecast, stating that it now sees percentage growth of low-double digits to mid-teens.

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