MiMedx Group (MDXG) 2025 Conference September 03, 2025 01:35 PM ET Speaker0Alright. Great. We're going to get started. My name is Ross Osborne. I'm the med tech and diagnostics analyst at Cantor Fitzgerald.And this afternoon, we have MyMedics. And so to kick things off, we'll have Matt present some initial slides, then we'll dive into a fireside chat.Speaker1Awesome. Thanks, Ross, and to the Kantor team for the opportunity to present. So before we get into the fireside portion, and I'm here joined with our ...

Financial Data and Key Metrics Changes - The company reported a 13% year-over-year increase in net sales, reaching a record $99 million, marking the highest quarterly revenue in its history [4][20] - Adjusted EBITDA for the quarter was $24 million, representing 25% of net sales, an increase from 23% in the prior year [27] - The adjusted gross profit margin was 84%, remaining stable compared to the previous year [22][27] - Cash and cash equivalents at the end of the quarter were $119 million, an increase of $12 million from the previous quarter [7][27] Business Line Data and Key Metrics Changes - Wound care sales were $64 million, up 12% year-over-year, while surgical sales increased by 15% to $34 million [21] - The surgical business saw strong contributions from products like AmnioEffect and AmnioFix, with HelioGen sales also accelerating [21][27] Market Data and Key Metrics Changes - The company is preparing for changes in the Medicare reimbursement system set to take effect on January 1, 2026, which is expected to impact the market dynamics significantly [5][16] - The proposed fixed payment for skin substitutes is set at $125.38 per square centimeter across all outpatient care settings [18] Company Strategy and Development Direction - The company aims to innovate and diversify its product portfolio, focusing on unmet needs in wound care and surgical markets [8][12] - Strategic priorities include expanding the surgical market footprint, enhancing customer intimacy, and developing complementary wound care solutions [12][14] - The company is actively collaborating with Vaprox Incorporated to co-market their Vaporous Hyperoxia Therapy device, which is expected to complement its existing product offerings [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the upcoming reimbursement changes will ultimately benefit the company in the long term, as it has robust evidence supporting its technology [33][36] - The company anticipates that the market will stabilize post-reform, allowing it to compete effectively based on product efficacy rather than price [35][38] - Management raised full-year revenue growth guidance from high single digits to low double digits due to strong performance and momentum [18] Other Important Information - The company is focused on maintaining strong customer relationships through initiatives like Mimetics Connect, which aims to improve customer engagement and satisfaction [15] - The company is also preparing for potential inventory management challenges as the new reimbursement rules come into effect [56] Q&A Session Summary Question: Thoughts on the market post-reimbursement change - Management welcomed the reimbursement changes, believing they will lead to a more rational market and better long-term prospects for the company [33][34] Question: Impact of fixed pricing on market size - Management indicated that it is too early to estimate the market size under the new fixed pricing but expressed confidence in gaining market share [38] Question: Confidence in maintaining growth despite pricing changes - Management is confident that they can maintain growth by capturing market share, even with the new pricing structure [41][43] Question: Timeline for EpiEffect readout - Management expects to have data from the EpiEffect randomized controlled trial by the end of the year, although enrollment has been slower than anticipated [45] Question: CMS flexibility on the fixed rate - Management could not predict CMS's flexibility regarding the fixed rate but plans to provide comments and recommendations during the comment period [50][52] Question: Potential anomalies in stocking due to LCDs - Management will closely monitor inventory levels as the new LCDs approach, ensuring readiness for any changes [54][57] Question: Opportunities in the mobile wound care market - Management acknowledged the importance of mobile wound care but did not provide specific strategies for that segment [66] Question: Impact of LCDs on market dynamics - Management speculated that a significant portion of the current market volume may decrease due to overutilization and the introduction of new pricing [77][80]