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|MiMedx Signs Definitive Agreement to Divest Stability Biologics Subsidiary as Part of Company's Strategic Focus on Biopharma|
The recent announcement by the Company to transition into a biopharmaceutical company was an impetus for this divestiture initiative. Acquired by
Parker H. "Pete" Petit,
Petit added, "We have determined that the Stability Biologics business is not a strategic fit with our new focus on becoming predominantly a biopharmaceutical company. While we believe the potential of Stability Biologics products continues to be significant, we expect to have better return on investment (ROI) opportunities in biopharma compared to those in the cadaver tissue category. A major incentive for the
Petit continued, "Our human placental tissue allografts are the source material for our primary asset base, which is a key technology differentiator in regenerative biologics. We are focusing our efforts on continuing down the Investigational New Drug/Biologics License Application (IND/BLA) regulatory pathways for numerous new therapeutic applications of our placental-based technology. MiMedx will continue to demonstrate, through scientific and clinical studies and trials, the clinical and economic effectiveness of our regenerative biologics and therapies. After this divesture,
MiMedx® is a biopharmaceutical company developing and marketing regenerative and therapeutic biologics utilizing human placental tissue allografts and patent-protected processes for multiple sectors of healthcare. "Innovations in Regenerative Medicine" is the framework behind our mission to give physicians products and tissues to help the body heal itself. We process the human placental tissue utilizing our proprietary PURION® Process among other processes, to produce safe and effective allografts.
Important Cautionary Statement
This press release includes forward-looking statements, including statements regarding the Company's confidence in its overall growth trajectory in 2017 and ability to meet revenue projections for the year even without revenue from Stability Biologics, the Company's expectations regarding the gain on the transaction, the Company's belief that the potential for Stability Biologics continues to be significant, the Company's belief that it will have better return on investment in the biopharma category compared to cadaver tissue, that the Company's placental tissue allografts are its technology differentiator, that the Company will continue to be able to demonstrate the clinical and economic effectiveness of its regenerative biologics and therapies, the Company's belief that its gross profit and operating margins will improve post-divestiture, and the Company's belief that the distributor agreement with Stability Biologics retains key sales relationships for the Company. Forward-looking statements also may be identified by words such as "believe," "except," "may," "plan," "potential," "will" and similar expressions, and are based on our current beliefs and expectations.
Forward-looking statements are subject to significant risks and uncertainties, and we caution investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Among the risks and uncertainties that could cause actual results to differ materially from those indicated by such forward-looking statements include that any of the Company's growth, revenue, and gross profit and operating margins may not continue as expected or may decline, Stability Biologics may not continue to have great potential post-divestiture, that the financial impact of the transaction may not occur as predicted, that the Company may not experience better return on investment in biopharma over cadaver tissue or may not be able to adequately transition into the biopharma space to realize its perceived advantages, that the Company's placental tissue allografts do not continue to be a technology differentiator as competition increases and/or new and different technologies are developed, and that the distributor agreement may fail to retain key sales relationships for the Company. For additional risks that might affect the Company, please review the Risk Factors section of our 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 we assume no obligation to update any forward-looking statement.
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Investor Contact: COCKRELL GROUP, Rich Cockrell, 877-889-1972, email@example.com, cockrellgroup.com; Press Release Contact: Michael Senken, Phone: (770) 651-9100