MiMedx Q3 sales fall 45%, miss estimates on lower wound sales

Overview

• US wound care and surgical products firm's Q3 sales fell 45% yr/yr, missing analyst expectations

• Company posted a Q3 net loss versus profit a year earlier, as wound sales dropped 71%

• Surgical product sales rose 9% yr/yr; company signed $25 mln patent license agreement

Outlook

• MiMedx expects 2026 net sales between $250 mln and $260 mln

• Company expects Q4 adjusted EBITDA to be sequentially higher than Q3

• MiMedx continues to target long-term annual net sales growth in low double-digits percentage

Result Drivers

• SURGICAL FRANCHISE GROWTH - Co said mid-teens volume growth in its surgical franchise drove a 9% yr/yr increase in surgical product sales, despite softer US surgical procedure volumes

• MEDICARE REIMBURSEMENT CHANGES - Co said wound sales fell 71% yr/yr, mainly due to Medicare reimbursement changes that negatively affected prices and demand for wound products

• COST REDUCTION INITIATIVE - Co said sequential improvement in gross margin and lower SG&A expenses were driven by cost reduction actions and manufacturing efficiencies

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for MiMedx Group, Inc. is $8.00, about 105.1% above its October 27 closing price of $3.90

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)