MDXG: New Captain on the Bridge
NASDAQ:MDXG
READ THE FULL MDXG RESEARCH REPORT
K. Todd Newton Appointed as Interim CEO
On September 6, 2022, MiMedx Group, Inc. (NASDAQ:MDXG) announced that Timothy R. Wright had departed from the lead management role and would be replaced by board of director member K. Todd Newton. Mr. Newton has served on the MiMedx board since 2019 holding the roles of Chair of the Audit Committee and as member of the Ethics and Compliance Committee. He has previous executive experience as CEO of Apollo Endosurgery (NASDAQ:APEN) where he led the device company for seven years. Previously he was CFO and COO at ArthroCare Corporation. He has also held roles at Syneco Energy and Deloitte & Touche.
The board highlighted Mr. Newton’s near 20 years of public company senior leadership experience and his guidance of the MiMedx management team on financial reporting and performance issues. Looking ahead, he will assist the board with its ongoing strategic review and continue to lead the company in its growth trajectory. A search committee has been formed to identify a permanent CEO comprised of board members M. Kathleen Behrens, James L. Bierman and William A. Hawkins III. An as yet unidentified search firm will assist in the process.
Dr. Laurencin Award
In late August, MiMedx board member, Dr. Cato T Laurencin, was recognized by the Regenerative Engineering Society with an award for his leadership and contributions to the field of regenerative engineering. The award is called The Cato T. Laurencin Regenerative Engineering Founders’ Award. It was established by the American Institute of Chemical Engineers (AIChE) Foundation and the AIChE Regenerative Engineering Society to recognize accomplishments in the science and practice of convergence research as applied to regenerative engineering.
Summary
MiMedx updated investors with the announcement of a new CEO who will hold the position as interim while the board seeks a permanent replacement. Concurrent with the management change release we update our estimates to reflect the most current guidance and lower 2H:22 revenue estimates. Contributors to the change include the later launch of Epifix in Japan that is expected in September and a slower trend in new and established products. Management continues to guide for double digit topline growth driven by new products, new geographies and expansion of sales in surgical recovery. Based on the 2021 calendar, we expect to see third quarter results at the beginning of November. We maintain our valuation of $11 per share.
SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to receive our articles and reports emailed directly to you each morning. Please visit our website for additional information on Zacks SCR.
DISCLOSURE: Zacks SCR has received compensation from the issuer directly, from an investment manager, or from an investor relations consulting firm, engaged by the issuer, for providing research coverage for a period of no less than one year. Research articles, as seen here, are part of the service Zacks SCR provides and Zacks SCR receives quarterly payments totaling a maximum fee of up to $40,000 annually for these services provided to or regarding the issuer. Full Disclaimer HERE.
