MARIETTA, Ga., Feb. 27, 2018 /PRNewswire/ -- MiMedx Group, Inc. (NASDAQ: MDXG), a leading developer and marketer ofregenerative and therapeutic biologics, today stated that the Company is not aware of any investigation of MiMedx by the Department of Justice (DOJ). In fact, three years ago a competitor filed a qui tam suit against the Company, and the DOJ declined
As the Company announced last week, the Audit Committee of the Company's Board of Directors and its independent advisers are investigating certain sales and distribution activities, which it expects will be completed in as timely a manner as possible. The Company is confident this course of action is in the best long-term interests of the company and its shareholders.
The public should be well aware that the Company has been under a concerted, illegal short selling attack since September. This group of illegal short sellers, which the Company believes includes Marc Cohodes, Aurelius Value, Viceroy Research, and other numerous hedge funds and individuals, has publicized a continuous stream of misinformation and lies about numerous aspects of the Company's business.
The Company has made numerous public disclosures about illegal short selling and the lack of reliability of these allegations because of the individuals involved.
The situation is complicated by the fact that the Company has terminated certain employees for cause over the last 15 months. The Company believes certain of these employees are retaliating by acting in concert with this group of short sellers to distort information and negatively impact the Company's stock price.
In response to a specific allegation in a recent Bloomberg article that the Company has charged higher prices to federal accounts than commercial accounts, the Company denies that it has engaged in such practice. The other allegations that have been made by this illegal short selling cabal have been answered quite effectively on the MiMedx website under "Short Selling Commentary". Any news writer that has an interest in obtaining all the true facts could visit that portion of the Company's website.
Importantly, management believes the recent activity of and accusations by the short sellers should not affect the Company's operational performance and clinical research activities. MiMedx has built a strong asset base with established and expanding sales and marketing channels supported by an outstanding, mature, operational organization, and management remains confident in the Company's ability to deliver operational and clinical success in the months and years to come.
Fortune Magazine recognized MiMedx as fifth ranked company in the publication's 2017 list of the top 100 fastest growing public companies. In addition, MiMedx reaffirmed that, based on information available to date, the independent investigation by its Audit Committee and their legal and accounting advisors should not have a material impact on the Company's 2018 revenue guidance of $383 million to $387 million.
About MiMedx MiMedx® is the 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 that 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.
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