MiMedx is divesting Stability Biologics, its bone graft subsidiary, back to its shareholders as it “transitions” into a biopharmaceutical company.
The Marietta, Georgia-based MiMedx acquired Stability Biologics in January last year to get its hands on its bone graft and tissue allograft products, including structural/particulate bone, demineralized bone matrix and skin products for burn and wound care.
The company concluded that the bone graft business was “not a strategic fit” for its ambitions to become “predominantly a biopharmaceutical company,” said MiMedx CEO Parker “Pete” Petit, in a statement. The deal is expected to close in the third quarter.
"We remain very confident in our growth trajectory continuing and in our ability to meet or exceed the revenue projections we have previously set for 2017,” Petit said.
“Even without the Stability Biologics revenue contribution in the fourth quarter, we are confident in our ability to meet our increased revenue guidance for the year.”
MiMedx markets regenerative and therapeutic biologics based on human placental tissue for use in burn and wound care, surgery, orthopedics and sports medicine, among other healthcare areas.
The divestiture of Stability Biologics comes a year after Mallinckrodt, a specialty pharma company, and dialysis provider Fresenius Medical Care jumped into regenerative medicine. Mallinckrodt announced a merger with Stratatech in August last year, while Fresenius created a regenerative medicine-focused subsidiary with the University of Turin.