
MIMEDX Reports Strong 3Q23; With Skin Substitute LCDs in Rear View and EPIEFFECT Launch Company Well Positioned in Fourth Quarter
10-31-23 (by: Scott Gleason) MIMEDX has reported its third quarter of 2023, with net sales of $81.7 million in the third quarter, marking a 20.7% increase compared to the same period in 2022. The growth was attributed to strong demand for MIMEDX’s Wound & Surgical product offering.
During the quarter the company announced a collaboration with MediWound, a global leader in wound care, which plans to use the company’s EPIFIX product during the wound healing phase of its EscharEx Phase III Study in venous leg ulcers. The company also recently announced the launch of EPIEFFECT for clinicians treating acute and chronic, hard-to-heal wounds such as diabetic foot ulcers and venous leg ulcers. The company did note that the recent LCDs which eliminated reimbursement for some skin substitute products led to confusion in the quarter among physicians and negatively impacted sales. The draft LCDs have now been pulled.
Selling, general, and administrative expenses decreased to $52.6 million during the third quarter, compared to $53.5 million in the same period in 2022 showing strong expense control. The company achieved GAAP net income of $8.5 million during the third quarter of 2023, marking a significant turnaround from a net loss of $8.4 million in the same period in 2022. MIMEDX’s liquidity position remained strong, with $81.2 million in cash and cash equivalents as of September 30, 2023. This figure increased from $68.7 million at the end of June 2023 and $66.0 million at the close of December 2022. During the third quarter of 2023, MIMEDX generated operating cash flows of $12.8 million.
MIMEDX is now forecasting that its full-year net sales percentage growth will be in the high teens based upon growing demand for the company’s Wound & Surgical product offering. Moreover, the company anticipates that the Adjusted EBITDA margin in the second half of 2023 will exceed 20%.
Joseph H. Capper, MIMEDX Chief Executive Officer, commented, “We are delighted to report another excellent quarter as the Company continues to execute across the board – commercially, operationally and financially. Net sales growth exceeded 20%, with an Adjusted EBITDA margin of 21.6% and a $12.5 million increase in our cash balance.”