MiMedx Group (MDXG) 2025 Conference Transcript

Summary of Conference Call Notes Company Overview - The company operates in the wound care and surgical products industry, with a focus on chronic and hard-to-heal wounds. [1][2] Key Products - EpiFix: Flagship product with widely recognized efficacy data. - AmnioEffect: A lyophilized surgical product that has gained traction since its launch 2.5 years ago. - HelioGen: First xenograft product acquired, derived from bovine sources, and cleared under the 510(k) process. [1][2] Business Segmentation - Wound care products account for approximately two-thirds of the business, while surgical products make up the remaining third. [2] Growth Metrics - Wound care segment grew by 12% in 2024, while surgical products grew by 8% year-over-year. - In Q1, surgical products grew by 16%, while wound care products remained flat. [3] Strategic Initiatives - The company is focusing on building evidence for surgical products, with several studies underway, including a randomized controlled trial for EpiEffect. [4][5] - Aiming to have Mimetics products used in tens of millions of surgical procedures annually. [5] Customer Engagement - The company emphasizes customer intimacy, aiming to be a trusted partner rather than just a vendor, with initiatives like MyMedix Connect. [5] Regulatory Environment - The company is advocating for Medicare reform due to the influx of unproven products in the market, which leads to fraud and abuse. [5][6] - Anticipation of changes in the national fee schedule by CMS in July 2026. [6] Financial Performance - Reported $350 million in sales for the trailing 12 months, with adjusted gross margins in the mid-80s, specifically 82%. [7] - Q1 net revenue was $88 million, representing a 4% year-over-year growth, with a 20% EBITDA margin. [8] - Ended Q1 with over $106 million in gross cash and $88 million in net cash after accounting for term debt. [8] Leadership and Market Position - The leadership team has significant experience in healthcare and medtech, with a long-term focus on growth. [9] - The company believes it has a defensible IP posture and competitive position in a maturing reimbursement regulatory landscape. [10] Conclusion - The company is optimistic about its market position, customer engagement, and financial health, with ongoing advocacy for regulatory reform to enhance business operations. [10]