MiMedx

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MiMedx is an American biomedical company based in Marietta, Georgia. Founded in 2008 by Parker H. Petit, it creates skin grafts using birth tissues such as the placenta, amniotic sac, and umbilical cord. The company serves customers worldwide and had about 710 employees in 2020.

Public company history: MiMedx joined the NASDAQ as MDXG in 2012, but was delisted in 2018 amid fraud allegations and later traded on OTC Pink. It relisted on the NASDAQ on October 30, 2020. By November 2020, it had supplied more than two million allografts for wound care, including diabetic foot ulcers, burns, and other injuries.

Turnaround and leadership: The company faced financial trouble and alleged mismanagement between 2016 and 2019, leading to Parker Petit’s departure in 2018. Tim Wright became CEO in May 2019 and led a turnaround with new management, improved transparency, and restated finances. By August 2020, MiMedx had raised about $150 million in private equity and debt and filed its 2019 annual report and 2020 first-quarter report.

Regulatory and legal actions: In 2013 the FDA said MiMedx’s amniotic products were not Section 361 eligible. The VA briefly stopped purchasing in 2013, but relief followed later. Beginning in 2016, allegations of revenue manipulation and short-seller campaigns emerged. The company changed auditors in 2017 and faced SEC investigations in 2017 and a DOJ investigation in 2018. In 2019–2020, MiMedx settled a SEC case for $1.5 million and later a DOJ case for $6.5 million related to inflated prices and revenue. Executives faced charges, and in 2020 Parker Petit and COO William Taylor were convicted in separate cases: Petit of securities fraud and Taylor of conspiracy, with prison time and fines.

Other notable points: In April 2020, MiMedx received a $10 million Paycheck Protection Program loan, which drew scrutiny given its past issues. The company continues to operate and evolve after these legal and financial challenges.