MiMedx Group Turns A profit From Human Amniotic Membrane

In short

We’d never come across biomaterials company MiMedx Group, Inc. It seems the company is heading in the right direction with the announcement of positive results for the quarter ended June 30, 2012.

Sales of $4.9 million for the second quarter of 2012, represented a 153% over the equivalent period a year ago. The Company’s earnings before interest, taxes, depreciation, amortization and share-based compensation for the quarter were a record high of $923,000, compared to the equivalent loss of $1.4 million a year ago.

Underpinning the picture is an improving gross margin of 77%, the company’s highest ever, and profit almost tripled compared with prior quarter.

Background

MiMedx® is an integrated developer, manufacturer and marketer of patent protected regenerative biomaterial products and bioimplants processed from human amniotic membrane. “Innovations in Regenerative Biomaterials” is the framework behind the company’s stated mission to give physicians products and tissues to help the body heal itself.

MiMedx’s biomaterial platform technologies include the device technologies HydroFix® and CollaFix™, and tissue technologies, AmnioFix® and EpiFix®. the company’s tissue technologies, processed from the human amniotic membrane, utilise a proprietary Purion® Process that was developed by its wholly-owned subsidiary, Surgical Biologics, to produce a safe, effective and minimally manipulated implant for homologous use. Surgical Biologics is the leading supplier of amniotic tissue, with applications in the Ophthalmic, Orthopaedics, Spine, Wound Care and Dental sectors of health.

Company Comments

Parker H. “Pete” Petit, Chairman and CEO stated, “Following our first quarter milestone of achieving positive adjusted EBITDA for the first time, we are very pleased that we almost tripled that metric for the second quarter as a result of continued strong revenue growth and improving gross margins. Our gross profit margins increased another 3% to 77%, which is approaching our goal of achieving 80% gross profit margins. We increased spending on clinical trials during the quarter, and we will continue to focus heavily on gathering significant amounts of clinical data on our AmnioFix® and EpiFix® allografts. This is the third consecutive quarter in which we have achieved our revenue goals, and we expect to continue that performance through the end of the year.”

“I extend my congratulations to our management team on what I consider to be an excellent quarter. Managing this level of revenue growth is always a challenge; however, we have made a few very timely additions to our management team with some key executives that came from our former organizations. We feel strongly that these new executives will complement the talents of our existing management team and enable us to smoothly sustain these levels of growth.”

“We had a solid quarter of orders for both of our amniotic tissue allografts, AmnioFix® and EpiFix®,” commented Bill Taylor, President and COO. “We have focused on our placenta recovery network and Purion® Processing operations to ensure that the increasing number of orders for AmnioFix® and EpiFix® can consistently be filled to serve the growing demand. We began the year with just under 50 employees, and as of today, we have expanded our work force to over 100 employees. This growth has been primarily in our tissue processing operations, tissue donation operations and additional sales and marketing associates to serve the expanding demand from physicians for our AmnioFix® and EpiFix® offerings.”

Source: MiMedx Group, Inc., PR Newswire