MiMedx — Management Miscommunication Skews Valuation Down and Creates Great Buying Opportunity

  • Number one is management’s miscommunication with the market. The market currently believes that wound care is the core business of MDXG, is not entirely aware of the potential of its biopharma pipeline and more specifically its Amniofix drug, and has priced the company based on this.
  • Number two is the huge potential of the Amniofix treatment and its ability to become the next blockbuster in the healthcare space after the conclusion of its phase 3 trial.
  • Number one is management’s miscommunication with the market. The market currently believes that wound care is the core business of MDXG, is not entirely aware of the potential of its biopharma pipeline and more specifically its Amniofix drug, and has priced the company based on this.
  • Number two is the huge potential of the Amniofix treatment and its ability to become the next blockbuster in the healthcare space after the conclusion of its phase 3 trial.
  1. Given the high influence EW healthcare has on the board of directors, there is potential for more value to describe acquisitions such as that of stability biologics, which was bought for 10 million and sold for 3.5 million 3 years later. If such a trend continues, the value of MDXG’s wound care business can dramatically decrease, which will hurt the share pierce
  2. The FDA approval of Amniofix is a large driver of the valuation calculated. There is a large risk that the FDA will not approve the treatment, however, with the RMAT designation in place and positive results from the first two phases of clinical trials, the odds are strongly in the favour of the approval at the current point in time.

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