MiMedx Q2 sales fall less than expected; set to acquire Sanara MedTech

Overview

• US wound care firm's Q2 sales fell 35% yr/yr but beat analyst expectations

• Adjusted EBITDA for Q2 missed analyst estimates, with company posting a loss

• Company to acquire Sanara MedTech in $350 mln cash and stock deal

Outlook

• MiMedx reiterates 2026 net sales guidance of $260-290 mln

• Company expects 2026 adjusted EBITDA to approach breakeven

• MiMedx sees long-term annual net sales growth in low double-digits

Result Drivers

• SURGICAL GROWTH - Surgical product sales rose 15% yr/yr, led by AMNIOFIX and AMNIOEFFECT, per CEO Joseph Capper

• WOUND BUSINESS DECLINE - Wound sales fell 61% yr/yr due to Medicare reimbursement changes effective Jan. 1

• COST REDUCTION ACTIONS - Co took steps to reduce expenses early in Q2, contributing to lower SG&A costs

Company press release: ID:nGNX64q1Wq

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for MiMedx Group Inc is $6.00, about 37.6% above its July 28 closing price of $4.36

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)