MDXG - MiMedx Group, Inc.

Other OTC - Other OTC Delayed Price. Currency in USD
7.48
+0.14 (+1.91%)
As of 10:41AM EST. Market open.
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Previous Close7.34
Open7.35
Bid0.00 x 1000
Ask0.00 x 800
Day's Range7.22 - 7.50
52 Week Range0.95 - 7.50
Volume71,268
Avg. Volume245,089
Market Cap844.544M
Beta (3Y Monthly)0.79
PE Ratio (TTM)24.05
EPS (TTM)0.31
Earnings DateApr 26, 2018
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est18.00
  • MiMedx Indictments Could Mean the Worst Is Over
    Bloomberg

    MiMedx Indictments Could Mean the Worst Is Over

    (Bloomberg Opinion) -- Short-sellers like to say that the CEOs who complain the loudest about them often turn out to be the ones with the most to hide. To judge by what regulators did Tuesday, that appears to be the case with Parker Petit, the former CEO of MiMedx Group Inc., a company that specializes in wound grafts, which he ran from 2009 until he was forced out by the board in 2018.During his last few years at MiMedx, Petit fought back fiercely as short-sellers began alleging that the company was “channel stuffing” — that is, shipping product to distributors who didn’t need it, and then booking the nonexistent revenue.Of course, no CEO likes investors who bet that the company’s stock will go down. But Petit seemed particularly obsessed with proving the short-sellers wrong. He devoted a section of the MiMedx website to rebutting their claims. He held anti-short conference calls. He described them as “a wolf pack” trying to bring the company down. He even sued several of them.But now, the MiMedx short-sellers have every reason to feel vindicated. On Tuesday, Geoffrey Berman, the top federal prosecutor in Manhattan, charged Petit and the chief operating officer of MiMedx, William Taylor, with securities fraud “for engaging in a scheme to fraudulently inflate MiMedx’s revenues.” In other words, channel stuffing.At the same time, the Securities and Exchange Commission unveiled its own set of charges against the two men, as well as the former chief financial officer, Michael Senken. In its press release, the SEC also announced that MiMedx settled the charges for $1.5 million without admitting or denying the allegations.According to the government, for three consecutive quarters in 2015, Petit and Taylor cut side deals to induce a handful of distributors to take MiMedx products they had no intention of using.For instance, the indictment alleges they paid one distributor $200,000, disguised as a “consulting fee,” which allowed them to book $1.2 million of revenue. They convinced another distributor, a startup, to take $4.6 million worth of product even though they knew the distributor didn’t have the means to pay for the shipment. Petit’s adult children even gave the distributor secret loans that he used to make a partial payment, thus helping to fool the auditors. And so on.The government says Petit and Taylor undertook this scheme so they could tell Wall Street they were beating their quarterly guidance. MiMedx had a track record for doing so — and that track record, in turn, had caused the stock to generate annualized returns of 26% from 2013 to 2017. Indeed, by the end of 2015, MiMedx had met or exceeded its revenue guidance for 17 straight quarters—thanks to the channel stuffing that took place that year, according to the government.In a statement, Petit professed his innocence, and said that the government was twisting standard business negotiations into “alleged ‘side deals,’ which is not accurate.” Through his attorney, Taylor also denied the charges. MiMedx’s statement included a quote from the chairwoman of the board, Dr. M. Kathleen Behrens: “Bringing this investigation to conclusion is another step towards the Company’s commitment to resolve past issues and move forward without distraction from our efforts in advanced wound care,” she said.It seems pretty clear that the vociferous table-pounding by the short-sellers, including the well-known investor Marc Cohodes, spurred the MiMedx board to launch an internal investigation in early 2018. The investigation uncovered the channel stuffing, and in June 2018, the board fired Petit, Taylor and several other executives. It also announced that the company would restate earnings going back to 2012.By the end of 2018, the stock, which had peaked at $17.90 a share, was under $2.MiMedx is a stellar example of why short-sellers play an important role: without them, the allegedly fraudulent actions of the MiMedx brass may well have remained hidden.But as I noted in several columns earlier this year, that wasn’t the end of it. Even though Petit had been ousted and a new management has been installed, the shorts have continued to hurl allegations at MiMedx. Cohodes has even called the company “a criminal enterprise.”On Tuesday, Cohodes took to Twitter to both claim victory and to warn that MiMedx was still a bad actor, tweeting: “The best part of the $MDXG story is that the Fraud and Criminal activity is still ongoing…” His Twitter allies also spent much of Tuesday gloating about the indictments.But I remain convinced that the worst is behind MiMedx, and the company’s prospects are bright. The $1.5 million penalty MiMedx is paying is little more than a slap on the wrist; it won’t have much effect on its business. Several respected health care investors are now on its board. Most of the old guard has been pushed out. There are doctors who swear by its products, which are made from placental tissue. And one important innovation, an injectable form of placental tissue, is in Phase III and Phase II trials for several indications.What’s more, the channel stuffing that’s alleged by the government was pretty small potatoes. According to the prosecutors, MiMedx reported revenue of $187.3 million in 2015. The alleged fraudulent activity accounted for just $9.5 million of that amount. One suspects that the earnings restatement, when it is finally completed, will mollify investors rather than alarm them.As it turns out, investors seem to agree. In the last few days, MiMedx shares have topped $6, and have returned 225% this year. Indeed, after the indictment was unveiled, the stock rose 6.46%.We’re all going to find out the truth soon enough. Once the restatement takes place, the company will start to once again post quarterly numbers and hold annual meetings. All the rumors and speculation will finally take a back seat to whatever story the numbers tell. Then we’ll know. To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Sarah Green Carmichael at sgreencarmic@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters

    UPDATE 1-Ex-CEO, COO of biotech firm MiMedx charged with securities fraud

    Two former executives of biotech company MiMedx Group Inc were criminally charged on Tuesday with fraudulently inflating the company's revenue. Former MiMedx Chief Executive Parker Petit and former Chief Operating Officer William Taylor were charged with securities fraud and conspiracy in an indictment in Manhattan federal court. "Pete Petit adamantly denies the charges leveled against him today, and he will vigorously defend himself in court," Petit' s lawyer, Eric Bruce, said in a statement.

  • MarketWatch

    MiMedx to pay $1.5 million to settle SEC probe of accounting practices

    MiMedx Group Inc. said Tuesday it has reached a settlement with the Securities and Exchange Commission to resolve a probe of its accounting practices. The company, which specializes in advanced wound care, will pay $1.5 million in a civil penalty and will enter a final judgment, subject to court approval, that will permanently restrain it from violating certain provisions of federal securities laws. The settlement is not part of a criminal investigation of the company that is currently being conducted by the United States Attorney's Office for the Southern District of New York, also relating to accounting issues. "The company is cooperating fully with that ongoing criminal investigation," it said in a statement. MiMedx overhauled its board in May after an internal probe of top executives found that they had spied on employees to discredit whistleblowers. The company's chief executive and chief operating officers resigned in July during an internal audit that found they and the company's former controller knew about revenue manipulation practices related to deals with its largest distributor. Shares were slightly higher Tuesday, but has gained 21% in the last month, while the S&P 500 has gained about 4%.

  • Reuters

    Ex-CEO, COO of biotech firm MiMedx charged with securities fraud

    Two former executives of biotech company MiMedx Group Inc were criminally charged on Tuesday with fraudulently inflating the company's revenue. Former MiMedx Chief Executive Parker Petit and former Chief Operating Officer William Taylor were charged with securities fraud and conspiracy in an indictment in Manhattan federal court. "Pete Petit adamantly denies the charges leveled against him today, and he will vigorously defend himself in court," Petit' s lawyer, Eric Bruce, said in a statement.

  • PR Newswire

    MiMedx Announces Securities and Exchange Commission Settlement

    MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced that it has finalized a settlement with the Securities and Exchange Commission (the "SEC"), resolving a previously disclosed investigation into the Company's financial accounting practices.

  • PR Newswire

    MiMedx Names William "Butch" Hulse as General Counsel and Secretary

    MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or "the Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced the addition of William "Butch" Hulse as its new General Counsel and Secretary, effective December 2, 2019. With more than twenty years' experience in large law firms and life sciences organizations, Mr. Hulse brings to MiMedx legal, risk management, compliance and operational expertise and a track record of success.

  • Benzinga

    12 Stocks With Short Ratios Above 50

    Short interest can be an extremely helpful too for traders looking to get a feel for how a stock might react to a catalyst or gauge the overall bullish or bearish sentiment in a stock. Stocks with extremely ...

  • PR Newswire

    MiMedx Announces Resignation of Board Member

    MARIETTA, Ga., Sept. 20, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or "the Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced that Luis A. Aguilar has notified the Company of his resignation from the Board of Directors. Dr. Kathleen Behrens Wilsey, Chair of the MiMedx Board of Directors, stated, "On behalf of the Board and the Company, we thank Luis for his commitment and contributions.

  • PR Newswire

    MiMedx Announces Agreement Regarding 2019 and 2020 Shareholder Meetings

    MARIETTA, Ga. , Aug. 8, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics ...

  • Business Wire

    Shareholder Group Comments on MiMedx Shareholder Meeting

    The MiMedx Shareholder Group (Petit, George, Furstenberg) wants to thank all of our shareholders that voted for our slate at the 2018 annual meeting that was held today. This means that there will probably not be a 2019 shareholder meeting held on August 19th or sooner. Also, the Board will be able to make further changes in the bylaws to further thwart shareholders exercising their rights.

  • PR Newswire

    MiMedx Shareholders Overwhelmingly Support Election of All Three of MiMedx's Highly Qualified Director Nominees

    Preliminary Vote Count Indicates that MiMedx's Director Nominees Received Support from Approximately 80% of the Votes Cast MiMedx Shareholders Reject Petit Group's Proposal to Hold 2019 Meeting in August ...

  • Business Wire

    MiMedx Continues to Fight against Holding 2019 Annual Meeting

    Hialeah Municipal Fund, a MiMedx shareholder, filed a lawsuit April 18, 2019, to force the Company to hold the 2019 Annual Meeting for the election of three Class III directors on June 17, 2019, at the same time as the Court ordered the Company to hold the 2018 Annual Meeting. Just as MiMedx did in opposing the first Hialeah lawsuit regarding the 2018 Annual Meeting for the election of three Class II directors, they are refusing to agree on a date to hold the 2019 Annual Meeting. The Company filed a Notice of Hearing for its Motion to Dismiss the second Hialeah lawsuit in the Circuit Court of Leon County, Florida on June 11, 2019.

  • Business Wire

    Former Chairman and CEO "Pete" Petit Highlights Flaws in Revenue Recognition Allegations

    All the revenue recognition allegations against MiMedx purposefully ignore the stark reality that the Company collected basically all of its booked revenue over the years. In addition, the Company bought over $130 million of its stock back without incurring debt or affecting revenue and profit growth.

  • PR Newswire

    MiMedx Urges Shareholders to Vote Today "FOR" All of the Board's Highly Qualified Nominees on the BLUE Proxy Card

    MARIETTA, Ga., June 14, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, encourages shareholders to vote "FOR" all of the Board's highly qualified nominees online or by telephone by following the easy instructions on the BLUE Proxy Card. The 2018 Annual Meeting of Shareholders (the "Annual Meeting") will be held on Monday, June 17, 2019 – shareholders are urged to vote the BLUE proxy card TODAY.

  • PR Newswire

    MiMedx Highlights Skills and Experience of Director Nominees

    Company Urges Shareholders to Vote with the BLUE Card Online or By Phone Today MARIETTA, Ga. , June 13, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), ...

  • Business Wire

    Mimedx Shareholder Group Calls out Significant Drop in Mimedx’s Profitability since the Original CEO & COO Were Asked to Leave the Company on June 30th, 2018

    MiMedx Group, Inc. just announced the signing of an agreement for a $75 million line of credit. The documents that the Company had to publish included for the first time its earnings before interest, taxes, depreciation and amortization (EBITDA) since the second quarter of 2018. In the Company’s disclosure, the EBITDA for the second quarter of 2018 was $24.8 million.

  • PR Newswire

    Leading Independent Proxy Advisory Firm Glass Lewis Joins ISS and Egan-Jones in Recommending MiMedx Shareholders Vote "For" All Three of the Company's Director Nominees

    MARIETTA, Ga., June 12, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today announced that leading independent proxy advisory firm Glass, Lewis & Co. ("Glass Lewis") has joined Institutional Shareholder Services ("ISS") and Egan-Jones Proxy Services ("Egan-Jones") in recommending MiMedx shareholders vote "FOR" the Company's three director nominees – K. Todd Newton, Dr. Kathleen Behrens Wilsey and Timothy R. Wright – on the BLUE proxy card in connection with the Company's 2018 Annual Meeting of Shareholders to be held on June 17, 2019.

  • PR Newswire

    MiMedx Secures $75 million Non-Dilutive Debt Financing

    Completes Key Milestone in Execution of Company's Long-Range Strategic Plan MARIETTA, Ga. , June 11, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), ...

  • PR Newswire

    Leading Independent Proxy Advisory Firms ISS and Egan-Jones Recommend That MiMedx Shareholders Vote the BLUE Card "FOR" All Three of the Company's Director Nominees

    ISS Recommends Shareholders Vote "AGAINST" the Petit Group's Shareholder Proposals ISS Recommends Shareholders Do Not Vote the White Card MARIETTA, Ga. , June 11, 2019 /PRNewswire/ -- MiMedx ...

  • Business Wire

    Mimedx Shareholder Group Urges Shareholders to Vote on the White Proxy Card for the 2018 Annual Meeting of Mimedx Group, Inc. on June 17, 2019

    IT IS ONLY BY A COMBINATION OF THESE TWO OVERDUE BOARD ELECTIONS THAT YOU, THE SHAREHOLDER, WILL HAVE THE RIGHT TO VOTE ON THE MAJORITY OF THE BOARD OF YOUR COMPANY. We TRUST YOU to know the Company DID NOT WANT YOU TO HAVE THIS RIGHT TO CHANGE CONTROL NOW. Whether by their actions in the Courts in Florida, or by delaying for at least six months a request of the SEC to grant an exemption to hold the 2018 meeting, the Company has done and continues to do everything in its power to DELAY AND DENY YOU THIS RIGHT.

  • PR Newswire

    MiMedx Issues Additional Information to Shareholders

    MARIETTA, Ga., June 10, 2019 /PRNewswire/ -- MiMedx Group, Inc. (OTC PINK: MDXG) ("MiMedx" or the "Company"), an industry leader in advanced wound care and an emerging therapeutic biologics company, today issued additional information to shareholders regarding the Company's upcoming 2018 annual meeting of shareholders (the "Annual Meeting"), scheduled to be held on June 17, 2019 at 9:00 a.m. local time, at the Marietta Conference Center (Hilton Atlanta/Marietta) at 500 Powder Springs St., Marietta, GA 30064.