MARIETTA, Ga., May 10, 2018 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), a leading developer and marketer of regenerative and therapeutic biologics, today commented on the indictment filed in the United States District Court for the District of South Carolina against individuals previously employed by the Department of Veterans Affairs (VA).
Although the indictment does reference speaker fees paid by the Company to the former VA employees who were indicted and other interactions between persons who were MiMedx employees at the time of the alleged events, it is important to note that MiMedx was not indicted.
The Company is actively reviewing the information outlined in the indictment. Furthermore, the Company has fully cooperated with the VA Office of Inspector General, which conducted the investigation in this matter. The Company will continue to cooperate fully with all legal and regulatory authorities.
The Company maintains a robust compliance program that, among other processes and procedures, monitors the activities of our sales representatives. Those who do not comply with the Company's policies and procedures are subject to disciplinary action.
The indictment includes allegations against the named individuals regarding the payment of speaker fees by the Company. On occasion, MiMedx engages providers to perform services on its behalf, such as providing scientific and clinical education presentations. Where the Company engages providers for services, the Company's policy is to pay the providers consistent with the fair market value of the services. Further, the MiMedx policy requires speakers to attest to the receipt of any required authorization from their institutions to speak on the Company's behalf, a strict policy outlined in all contractual arrangements. The Company will continue to investigate these and the other allegations in the indictment.
On previous occasions, MiMedx has informed shareholders that it has been proactive in providing information to the VA Office of Inspector General relative to concerns the Company had with certain terminated employees possibly not following VA rules and regulations.
It is the Company's opinion that it has a well-respected product line in the VA and the Department of Defense hospitals. MiMedx is the vendor of choice in the vast majority of these hospitals because of the products' clinical performance and cost effectiveness.
About MiMedx
MiMedx® is a leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind the Company's mission to give physicians products and tissues to help the body heal itself. The Company processes the human placental tissue utilizing its proprietary PURION® Process methodology, among other processes, to produce safe and effective allografts by employing aseptic processing techniques in addition to terminal sterilization. MiMedx has supplied over 1 million allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare. For additional information, please visit www.mimedx.com.
Safe Harbor Statement
This press release includes forward-looking statements. Additional forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements.
Actual results may differ from those set forth in the forward-looking statements. For more detailed information on the risks and uncertainties, please review the Risk Factors section of the Company's most recent annual report or quarterly report filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.
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Although the indictment does reference speaker fees paid by the Company to the former VA employees who were indicted and other interactions between persons who were MiMedx employees at the time of the alleged events, it is important to note that MiMedx was not indicted.
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The Company is actively reviewing the information outlined in the indictment. Furthermore, the Company has fully cooperated with the VA Office of Inspector General, which conducted the investigation in this matter. The Company will continue to cooperate fully with all legal and regulatory authorities.
The Company maintains a robust compliance program that, among other processes and procedures, monitors the activities of our sales representatives. Those who do not comply with the Company's policies and procedures are subject to disciplinary action.
The indictment includes allegations against the named individuals regarding the payment of speaker fees by the Company. On occasion, MiMedx engages providers to perform services on its behalf, such as providing scientific and clinical education presentations. Where the Company engages providers for services, the Company's policy is to pay the providers consistent with the fair market value of the services. Further, the MiMedx policy requires speakers to attest to the receipt of any required authorization from their institutions to speak on the Company's behalf, a strict policy outlined in all contractual arrangements. The Company will continue to investigate these and the other allegations in the indictment.
On previous occasions, MiMedx has informed shareholders that it has been proactive in providing information to the VA Office of Inspector General relative to concerns the Company had with certain terminated employees possibly not following VA rules and regulations.
It is the Company's opinion that it has a well-respected product line in the VA and the Department of Defense hospitals. MiMedx is the vendor of choice in the vast majority of these hospitals because of the products' clinical performance and cost effectiveness.
About MiMedx
MiMedx® is a leading biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts with patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind the Company's mission to give physicians products and tissues to help the body heal itself. The Company processes the human placental tissue utilizing its proprietary PURION® Process methodology, among other processes, to produce safe and effective allografts by employing aseptic processing techniques in addition to terminal sterilization. MiMedx has supplied over 1 million allografts to date for application in the Wound Care, Burn, Surgical, Orthopedic, Spine, Sports Medicine, Ophthalmic and Dental sectors of healthcare. For additional information, please visit www.mimedx.com.
Safe Harbor Statement
This press release includes forward-looking statements. Additional forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," "preliminary," and similar expressions, and are based on management's current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements.
Actual results may differ from those set forth in the forward-looking statements. For more detailed information on the risks and uncertainties, please review the Risk Factors section of the Company's most recent annual report or quarterly report filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.
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SOURCE MiMedx Group, Inc.
