Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  MiMedx Group Inc    

MIMEDX GROUP INC

SummaryChartsNewsRatingsCalendarCompany 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations
The feature you requested does not exist. However, we suggest the following feature:

MiMedx : Health Insurer Shuns 'Unproven' Amniotic-Tissue Products -- Update

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/15/2018 | 08:44pm EST

By Gretchen Morgenson

United Healthcare, one of the nation's largest insurance companies, has determined that amniotic tissue products made by MiMedx Group Inc. and other manufacturers are "unproven and/or not medically necessary for any indication," and won't reimburse patients for their use, according to the insurer's most recent medical policy update bulletin.

The updated policy at United Healthcare, which goes into effect Oct. 1, came about because of "insufficient clinical evidence of safety and/or efficacy in published peer-reviewed medical literature" about the products, the bulletin said.

"Due to limited studies, small sample sizes, and weak study designs, there is insufficient clinical evidence to conclude that these skin substitutes have an improved health outcome over standard therapies; well-designed, randomized comparative clinical trials are needed to demonstrate the efficacy and safety of these products," United Healthcare said.

"Unlike many other insurers, UnitedHealthcare has not covered MiMedx products, so this does not represent a change in coverage," said a MiMedx spokesman. "We look forward to continuing to build on our compendium of clinical studies to help gain coverage in the future."

The products, which include wound patches and injectable products made of amniotic tissue, have been aggressively promoted to treat a variety of ailments, including erectile dysfunction, osteoarthritis and hair loss.

The decision by the giant insurer, whose parent company is UnitedHealth Group Inc., hasn't been publicly reported and coincides with a similar policy change by Health Care Services Corp., the parent of Blue Cross/Blue Shield operations in five states.

On Aug. 1, Health Care Services said it wouldn't reimburse patients for injectable amniotic-tissue products, saying they are experimental and investigational. It also said it would limit reimbursement for wound patches made from the material.

After The Wall Street Journal reported on that change, MiMedx issued a news release Wednesday saying the company "continues to build its compendium of clinical studies, including numerous randomized controlled studies, to support the use of EpiFix," an amniotic skin graft.

Once a highflying health-care company, MiMedx is facing an array of woes. It is in the process of restating its financial results back to 2012, and its founder, Parker H. "Pete" Petit, has been removed as chief executive, although he remains on the board. Its shares, which peaked at nearly $18 earlier this year, have fallen to below $4.

The company prospered after it acquired a seller of treatments in 2011 meant to heal wounds more quickly. The products, made from placentas from women who have given birth by caesarean section, were lightly regulated and relatively inexpensive to make.

MiMedx takes the amniotic membrane -- thin, moist tissue that protects the fetus -- and processes it into wound patches or grinds it into a powder that can be applied topically or by injection.

A recent Wall Street Journal investigation detailed allegations by former employees that MiMedx improperly booked revenue when it shipped goods, rather than when the products were used. Its practices are under investigation by the Justice Department, the Department of Veterans Affairs and the Securities and Exchange Commission.

The Marietta, Ga.-based company has said its board's audit committee is conducting an independent investigation into "certain sales and distribution practices and other matters" and that it is cooperating fully with regulatory agencies, but didn't elaborate.

Write to Gretchen Morgenson at gretchen.morgenson@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
UNITEDHEALTH GROUP 1.60% 273.7655 Delayed Quote.8.14%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on MIMEDX GROUP INC
09/23MIMEDX : Announces Resignation of Board Member
AQ
09/20MIMEDX GROUP, INC. : Change in Directors or Principal Officers, Regulation FD Di..
AQ
09/20MIMEDX : Announces Resignation of Board Member
PR
09/17MIMEDX GROUP, INC. : Change in Directors or Principal Officers (form 8-K)
AQ
06/14MIMEDX : Urges Shareholders to Vote Today "FOR" All of the Board's Highly Qualif..
PR
06/13MIMEDX : Highlights Skills and Experience of Director Nominees
PR
06/12MIMEDX : Leading Independent Proxy Advisory Firm Glass Lewis Joins ISS and Egan-..
PR
06/11MIMEDX : Secures $75 million Non-Dilutive Debt Financing
PR
06/10MIMEDX : Issues Additional Information to Shareholders
PR
06/03MIMEDX : Files Definitive Proxy Materials and Mails Letter to Shareholders
PR
More news
Chart MIMEDX GROUP INC
Duration : Period :
MiMedx Group Inc Technical Analysis Chart | MarketScreener
Full-screen chart
Managers
NameTitle
Timothy R. Wright Chief Executive Officer & Director
M. Kathleen Behrens Wilsey Chairman
Scott M. Turner Senior Vice President-Operations & Procurement
Edward J. Borkowski Chief Financial Officer & Executive Vice President
Thomas J. Koob Chief Scientific Officer
Sector and Competitors
1st jan.Capitalization (M$)
MIMEDX GROUP INC-76.61%642
STRYKER CORPORATION31.58%77 220
SMITH & NEPHEW PLC13.01%18 636
WRIGHT MEDICAL GROUP N.V.8.41%3 745
GLAUKOS CORPORATION13.55%2 355
INSPIRE MEDICAL SYSTEMS, INC.51.46%1 497