MiMedx Group, Inc. (NASDAQ: MDXG) is engaged as a biotechnology company that is focused as a placental biologics developer to meet unmet clinical needs such as advanced wound care. Shares of the biotech company are rallying 29% through early trading on Wednesday, May 3, 2023. Over the past three months, MiMedx Group has seen average daily volume of 508,800 shares. However, volume of 1.42 million shares or dollar volume of around $6.97 million, has already exchanged hands through early trading.
Shares of MiMedx Group are gaining after the company reported a strong Q1 2023 with net sales of $71.7 million, reflecting a 21.7% increase from the prior year period. The company’s net loss was reduced to $5.0 million, and adjusted EBITDA reached $5.5 million. CEO Joseph Capper attributed the growth to the demand for new products in the surgical market and accelerated growth in the private physician office setting. The company also made progress in several structural and operational initiatives, resulting in improved gross margin and operating expenses.
Q1 2023 highlights include a 21.7% increase in net sales compared to Q1 2022, with the Wound & Surgical segment contributing $70.6 million. The gross margin for Q1 2023 stood at 82.7%, a slight decrease from the 83.1% in Q1 2022. Selling, general, and administrative expenses rose to $52.3 million, primarily due to higher commissions associated with increased sales. Research and development expenses increased to $6.5 million, driven by higher costs for the company’s knee osteoarthritis clinical trial program. Net loss decreased to $5.0 million from the previous year’s $10.5 million.
As of March 31, 2023, MiMedx had $61.2 million in cash and cash equivalents. The company aims for low double-digit annual sales growth driven by new products, demand, and sales in Japan. The company also seeks to achieve a Wound & Surgical segment contribution margin at or above 30% of segment net sales and corporate expenses below 20% of sales. A conference call and webcast to review Q1 2023 results will be held on May 2, 2023, at 5:00 PM ET.
Joseph Capper, MIMEDX Chief Executive Officer: “Our first quarter 2023 results demonstrate an excellent level of focus and execution across our organization, particularly among our commercial team. Our double-digit net sales growth this quarter was driven by robust demand for our new products in the surgical market and an accelerated growth rate in the private physician office setting. Our entire product offering is winning across the care settings we serve, as we work to make our best-in-class placental biologics products available to a large and growing number of patients each day.”
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