MiMedx Sales Fall 45% To $62 Million As FTC Review Holds Up Sanara Deal
The wound-care maker's Wound sales fell 71% in the third quarter while Surgical rose 9%, and it landed a $25 million patent license.
MiMedx, which makes placental-tissue products for wound care and surgery, said third-quarter net sales fell 45% to $62 million from $114 million a year earlier, as Medicare reimbursement changes gutted its Wound business. CEO Joseph Capper said the company is "working diligently with the FTC to obtain HSR clearance" for its pending purchase of Sanara MedTech.
Wound collapses, Surgical grows
Wound sales dropped 71% from a year earlier to $22 million, which the company blamed on Medicare reimbursement changes that took effect January 1, 2026. Surgical sales rose 9% to $40 million, or 64% of the total.
The company reported a net loss of $9 million, against net income of $17 million a year earlier. Adjusted EBITDA, a profit measure that strips out items such as legal costs and stock pay, returned to positive at $2 million, from $35 million in the year-ago quarter. Gross margin was 80%, against 84% a year ago and 69% in the second quarter.
Capper said Wound Care Center unit volume grew 7% from the prior quarter. He said cost cuts from earlier this year are now fully in the run rate.
A $25 million patent payout
MiMedx also said it signed a license with a wound care competitor that resolves patent infringement allegations. The licensee will pay $25 million in five equal annual installments of $5 million, and the first has been received. The license is non-exclusive.
Sanara deal waits on the FTC
The company said it is fully committed to the Sanara combination and will cooperate with the FTC to reach a resolution quickly. The presentation says Sanara holders approved the deal on September 30 and calls FTC clearance the last major hurdle. The agency issued a second request, a deeper antitrust review.
Financing is a $300 million Hayfin term loan that funds the cash portion of the deal and is contingent on closing. A ticking fee, a charge that accrues while the loan is waiting to fund, began accruing earlier this month and is due at closing.
MiMedx ended September with $121 million in cash and no debt, after repaying the remaining $17 million of its term loan during the quarter. It now expects 2026 net sales of $250 million to $260 million and fourth-quarter adjusted EBITDA above the third quarter's.
MiMedx held a call at 4:30 p.m. ET on Wednesday to discuss the results; the ticking fee on the Hayfin loan keeps accruing until the Sanara deal closes.
