MARIETTA, Ga., Sept. 6, 2016 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), the leading regenerative medicine company utilizing human amniotic tissue and patent-protected processes to develop and market advanced products and therapies for the Wound Care, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic, and Dental sectors of healthcare, announced today the Company's reiteration of its previous guidance for the third quarter and full year 2016, and the results of the Company's Share Repurchase Program.
Based on the first two months of the third quarter, MiMedx is reiterating its third quarter guidance of $62 to $64 million in revenues. With new product launches such as OrthoFlo, MiMedx revenues should be in the upper end of the range. The Company is also reiterating its guidance of $243.5 million to $248 million in revenue for the full year 2016. The Company expects its fourth quarter revenue to be very robust based on its new product line introductions and organic growth in its core Wound Care and Surgical, Sports Medicine and Orthopedic ("SSO") areas.
Bill Taylor, President and COO, said, "In our press release of September 1, 2016, we announced the details of the launch of our latest new product, AmnioFill™. We expect that the revenue ramp up from this new product will be accelerated. In anticipation of the launch and based on the demand for a product focused on the treatment of dehisced surgical wounds and other deep complex and hard-to-heal surgical wounds, we have products from this new launch already included on certain Group Purchasing Organizations ("GPOs") and Independent Delivery Networks ("IDNs") contracts. This pre-positioning of these contracts should help to generate additional revenue in the fourth quarter."
Share Repurchase Program Continues
As of August 31, 2016, the Company has repurchased $55.1 million of its shares in open market transactions.
Parker H. "Pete" Petit, Chairman and CEO, stated, "We are continuing to buy shares through our Share Repurchase Program due to the significant undervaluation of our share price at this time. MiMedx executives and our Board of Directors feel this repurchase program is a very prudent use of our capital in order to take advantage of the current share price that seems to defy the positive fundamentals of our business and our very steady and strong growth trajectory."
The timing and amount of repurchases, if any, will depend upon the Company's stock price, economic and market conditions, regulatory requirements, and other corporate considerations. The Company may initiate, suspend or discontinue purchases under the stock repurchase program at any time.
Expectations for Positive Outcomes from Patent Infringement Lawsuits
In its August 29, 2016 press release, MiMedx provided an update on the Company's intellectual property and expressed its optimism about the outcome of the Company's two pending patent litigation trials, the first of which may occur as early as October. "If those cases go as expected, MiMedx will have the opportunity for injunctive relief against other violators of our patents. In simple terms, this means we will be better able to stop other competitors in a more expeditious manner from selling products that infringe our patents," concluded Petit.
The Company previously announced that MiMedx management will be hosting a live broadcast of its conference call on Wednesday, September 7, 2016, beginning at 10:30 a.m. eastern time. In addition to discussing the updates of the Company's clinical studies that were highlighted in its press release of August 30, 2016, management will also discuss the topics included in this press release. A listen-only simulcast of the MiMedx Group conference call will be available on-line at the Company's website at www.mimedx.com. A 30-day on-line replay will be available approximately one hour following the conclusion of the live broadcast. The replay can also be found on the Company's website at www.mimedx.com.
MiMedx® is an integrated developer, processor and marketer of patent protected and proprietary regenerative biomaterial products and bioimplants processed from human amniotic membrane and other birth tissues and human skin and bone. "Innovations in Regenerative Biomaterials" is the framework behind our mission to give physicians products and tissues to help the body heal itself. The MiMedx allograft product families include our: dHACM family with AmnioFix®, EpiFix® and EpiBurn® brands; Amniotic Fluid family with OrthoFlo brand; Umbilical family with EpiCord™ and AmnioCord™ brands; Placental Collagen family with CollaFix™ and AmnioFill™ brands; Bone family with Physio® brand; and Skin family with AlloBurn™ brand. AmnioFix, EpiFix, and EpiBurn are our tissue technologies processed from human amniotic membrane; OrthoFlo is an amniotic fluid derived allograft; EpiCord™ and AmnioCord™ are derived from the umbilical cord; Physio is a unique bone grafting material comprised of 100% bone tissue with no added carrier; AlloBurn is a skin product derived from human skin designed for the treatment of burns; and CollaFix, our next brand we plan to commercialize, is our collagen fiber technology, developed with our patented cross-linking polymers, designed to mimic the natural composition, structure and mechanical properties of musculoskeletal tissues in order to augment their repair.
We process the human amniotic membrane utilizing our proprietary PURION® Process, to produce a safe and effective implant. MiMedx proprietary processing methodology employs aseptic processing techniques in addition to terminal sterilization. MiMedx is the leading supplier of amniotic tissue, having supplied over 700,000 allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare.
Safe Harbor Statement
This press release includes statements that look forward in time or that express management's beliefs, expectations or hopes. Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to the Company's financial projections for third quarter and full year 2016; plans for the announcement of another new product later in the third quarter; that new products such as OrthoFlo should contribute to third quarter revenue being in the upper end of the range; that fourth quarter revenue growth should be robust based on new product line introductions and organic growth; that the revenue ramp from AmnioFill should be accelerated based on the demand for the product and the inclusion of these products in certain GPO and IDN contracts; that the pre-positioning of GPO and IDN contracts should help generate additional fourth quarter revenue; that repurchasing shares is a prudent use of the Company's capital; that the current price of the Company's stock defies the fundamentals of the MiMedx business; the Company's optimism that it will fully prevail at the conclusion of the two noted lawsuits at trial; and the Company's belief that the outcomes of these trails will enable it to stop other companies in a more expeditious manner from infringing on its products. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include the Company's financial projections for third quarter and full year 2016; plans for the AmnioFill new product to be launched later in the third quarter; that the new product lines should add to the Company's growth in the last half of the year; the risks inherent with the use of the Company's capital to repurchase stock; that the Company is not able to deliver on its product initiatives and opportunities or react to market changes; that the share repurchase plan does not return value to shareholders; that the Company's stock is not undervalued or does not otherwise increase in value in the future; that the Company will not fully prevail at the conclusion of the two noted lawsuits at trial; the risks and uncertainties associated with litigation; even if the Company is successful in its patent litigation, that success may not prevent others in a more expeditious manner from infringing on its patents; and the risk factors detailed from time to time in the Company's periodic Securities and Exchange Commission filings, including, without limitation, its 10-K filing for the fiscal year ended December 31, 2015 and its most recent 10Q filing. By making these forward-looking statements, the Company does not undertake to update them in any manner except as may be required by the Company's disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.
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SOURCE MiMedx Group, Inc.