MiMedx CEO Says Wound Care's Bottom Is Hard To Call, Sees 2027 Looking Like 2026
Joseph Capper says the company is "only three quarters into this reset" as wound sales fell 71% to $22 million.
MiMedx CEO Joseph Capper said on the company's third-quarter earnings call Wednesday that wound care is "probably the toughest one to predict," and that "smart money" expects 2027 to look like 2026. Wound net sales were $22 million, down 71% from a year earlier, as the business absorbs Medicare reimbursement cuts.
A reset with no clear floor
MiMedx, which makes tissue-based products from donated human placental and umbilical cord tissue for wound care and surgical patients, is feeling the Medicare reimbursement changes that took effect on January 1, 2026. Asked by a Craig-Hallum analyst whether visibility had improved, Capper said the company is "only three quarters into this reset."
He said MiMedx came into the year realizing it was losing "probably 42%" of its 2025 revenue, all at a high gross margin. From a gross margin perspective, he said, the company "probably lost $145 million of 2025 revenue." Where volume and price finally settle, he said, is "still a little difficult to pinpoint."
CFO Doug Rice said the company expects mid-single-digit sequential wound growth to finish the year.
Surgical carries the quarter
Total net sales were $62 million, down 45% from a year earlier, Rice said. Surgical sales of $40 million rose 9% and now make up about two-thirds of the total. Capper said surgical volume grew in the mid-teens.
Wound care center unit volume rose more than 20% from a year earlier and 7% from the prior quarter, which Capper called a positive indicator. Use of skin substitutes in other outpatient settings remains well below prior-year levels.
Gross margin was 80%, up about 11 percentage points from the second quarter. Adjusted EBITDA, a measure of operating profit, was $2 million, and the company ended the quarter with $121 million in net cash and no borrowings under its term loan or revolver. Rice said the company now expects full-year net sales of $250 million to $260 million.
November fee schedule, and a pending deal
Capper said the only scheduled event for wound care is publication of the final Medicare fee schedules, which typically come in November. He does not anticipate much change from the July proposal.
Separately, the FTC has issued a second request for information on MiMedx's pending acquisition of Sanera MedTech, extending the antitrust waiting period. Capper said the company had been working toward an October close before the request, and that he would not put a timeline on it. MiMedx also announced a $25 million patent settlement and license with one party it says infringed its patents.
Capper's own forecast for wound care is blunt: what the company sees in 2026 is "probably what we're going to see in 27."
Sources
- MiMedx Group Non-GAAP EPS of -$0.01, revenue of $62.2M misses by $6.52M (MDXG:NASDAQ) | Seeking Alpha — seekingalpha.com
- MiMedx: Q3 Earnings Snapshot — Associated Press
- MIMEDX Announces Third Quarter 2026 Operating & Financial — globenewswire.com
- MIMEDX Announces $25 Million Patent License Agreement — globenewswire.com
