HalloweenCandy, did you mean that my message is the stupidest of the year??
The new Collafix product MDXG is launching is made from by-product, or scraps, of MDXG's Purion process used to make their other products, Epifix and Amniofix. I suspect this means it too will have very high gross margins.
If I were Medtronic or Zimmer and I was interested in buying MDXG, would I want to sell a lot of their product, thereby increasing the price I will eventually have to pay for Mimedx??
I suspect the next catalyst will be the Analyst Day in NYC in early October. In the interim, there is a chance another sell side brokerage firm institutes coverage on the stock down at these prices.
And therefore, it deserves a low EV to sales multiple? If not, tell me how. This concerns me, as does low gross margins. Am open to being educated.
Has some updated data in it.
Sentiment: Strong Buy
Hi, thanks for posting. What document is this excerpt from and forgive me for being slow, but what point are you trying to make?
Publicly traded medical device company Integra buys TEI Biosciences, a regenerative wound care co, for $312 million. Purchase price was 4.8x trailing twelve month sales. TEI was apparently growing at single digits. Any corporate buyer of MDXG would likely look at this deal for guidance as to what to pay (among others). MDXG, which is growing much faster, would arguably fetch a higher mutliple in a sale.
You are right. I should have written "Amniofix mentioned as one of many potential cures for arthritis but it has yet to be approved by the FDA and FDA trials can be expensive."
See stocktwits for link or go to Miami Herald paper website and search for amniofix