Highlights Successful Execution of Transformation Strategy Under CEO
Reaffirms Commitment to Enhancing Value for ALL Shareholders
Urges Shareholders to Vote “FOR” Both of MIMEDX’s Highly Qualified Director Nominees –
The MIMEDX Board of Directors recommends unanimously that shareholders vote the WHITE proxy card for both of MIMEDX’s highly qualified directors standing for election –
The full text of the letter follows and can also be found at www.VoteMIMEDX.com, along with other materials regarding the Board of Directors’ recommendation for the 2022 Annual Meeting of Shareholders.
VOTE THE WHITE PROXY CARD TODAY “FOR” BOTH OF MIMEDX’S HIGHLY QUALIFIED AND INDEPENDENT DIRECTORS – JAMES BIERMAN AND
Dear Fellow Shareholder,
On
After accomplishing such significant milestones, the Board and management team, like you, are frustrated that the overall market downturn and product setbacks have negatively impacted the Company’s stock price performance. However, we believe that the Company’s current valuation does not reflect the value potential of our company. We are confident in the steps we are taking to advance our strategy as outlined at the Company’s recent Investor Day, held in
There are no shortcuts in this business. What we offer our healthcare providers, their patients and their loved ones is too important to put at risk. As we look to the future, we see the opportunity to further reinvigorate our product vitality index, drive our placental biologics pipeline forward, and expand our business in support of our mission – a mission that will also drive significant value for all shareholders. We are confident that we have the right Board and management team in place to build on our transformation and execute on our strategic objectives.
We urge all shareholders to vote “FOR” both of MIMEDX’s highly qualified and independent directors
The Board Has Taken Concrete Steps to Enhance Our Governance Practices and Our Highly Qualified Nominees Exemplify Our Commitment to Refreshment and Progress
MIMEDX’s entirely reconstituted Board is made up of nine highly qualified, deeply experienced and demonstrably engaged directors who are strongly committed to acting in the best interests of all shareholders. Under the Board’s oversight,
The two directors standing for re-election this year both are highly respected in the life sciences industry and have made significant contributions to our successful turnaround. They bring important skills, business acumen and industry experience to guide and oversee the Company as fiduciaries with high integrity and sterling reputations:
James L. Bierman , an independent director, brings substantial operational and financial experience in M&A and the healthcare sector. He is an accomplished and experienced executive and public company director in the healthcare industry, having served as President and Chief Executive Officer, and as a member of the board of directors of Owens & Minor, Inc. (NYSE: OMI), a Fortune 500 company and a leading distributor of medical and surgical supplies. Earlier in his career,Mr. Bierman served as Executive Vice President and Chief Financial Officer atQuintiles Transnational Corp and, prior to joining Quintiles Transnational, he was a partner atArthur Andersen LLP for over a decade. In addition toMIMEDX ,Mr. Bierman currently serves on the board of directors of Tenet Healthcare Corporation (THC) and Novan, Inc. and as an independent director of KL Acquisition Corp. (NASDAQ: KLAQU).Mr. Bierman earned his B.A. fromDickinson College and his M.B.A. atCornell University's Johnson Graduate School of Management . He has served on the Board sinceJune 2019 .Phyllis Gardner , M.D., an independent director, has spent over 35 years in academia and offers significant medical expertise and industry experience including as a Professor of Medicine atStanford University .Dr. Gardner stands for independent scrutiny and accountability, as evidenced by her early, original and accurate analysis of the science underlying Elizabeth Holmes’ plans forTheranos . She has served on the board of directors of several public and private companies, as well as an advisor and in various consulting capacities, including as Principal Scientist at a major drug delivery company.Dr. Gardner has been a member of theHarvard Medical School Board of Fellows sinceApril 2013 and is a scientific reviewer for theCancer Prevention and Research Institute of Texas . She holds a B.S. from theUniversity of Illinois and an M.D. fromHarvard University and has served on the Board sinceMarch 2021 .
These markets represent a significant and growing opportunity, due to various demographic trends, including an aging population, increasing incidence of obesity and diabetes and the associated higher susceptibility to non-healing chronic wounds and surgical complications. The increasing number of patients requiring advanced treatment represents a significant cost burden on the healthcare system. By incorporating a strategy to advance the underlying placental science and more rigorously establish the scientific foundation, clinical effectiveness and economic efficiency of our products,
In order to make sure
- Successfully reorganizing our commercial business: Last year, we completely reorganized the commercial business, focusing on geographic redistricting, the addition of new sales aids and educational resources to assist the sales force and aligning the compensation plan with revenue growth. We have re-designed our training program for our sales professionals to improve revenue generation through more consistent, effective and aligned messaging that communicates the clinical and economic value of
MIMEDX products. We are expanding our reach in procedures where our customers are looking for new clinical solutions to address complex cases and where patients are seeking a better outcome. - Formally announcing the reorganization of our internal business: Effective
April 2022 , we created two defined, cohesive business units at the Company. The first focused on Wound Care and Surgical Recovery markets and the second focused on Regenerative Medicine and Biologics Innovation, specifically progressing our placental biologics platform toward registration as an FDA approved biological drug. By focusing on key strategic commercial initiatives, including our goal to develop and launch two new products annually, we believe the realignment will further enable dedicated key contributors to work in collaboration, functioning in a way that streamlines operations and positions necessary resources, infrastructure and expertise critical to innovation and value creation. - Advancing our late-stage clinical pipeline: We are implementing a strategy to advance our products’ underlying placental science and more rigorously establish their clinical efficacy and cost effectiveness. We have more than doubled our R&D staff and significantly improved the rigor of our clinical, regulatory, quality, manufacturing and operations support in a way that improves our overall probability of success.
- Accelerating the initiation of trial enrollment in our Knee Osteoarthritis (KOA) clinical trial program: Our micronized dehydrated Human Amnion Chorion Membrane (mdHACM) platform represents an outstanding opportunity. We are taking critical steps to accelerate the initiation of trial enrollment in our KOA clinical trial program, lining up industry-leading clinical and scientific resources to augment our own efforts and fast-tracking research initiatives to build on the promising data derived from our Phase 2B KOA study and further educate the market on the potential impact of mdHACM on the underlying disease process. If approved, we believe there is tremendous revenue generation potential in these programs, and we are working tirelessly to accelerate our path to serving KOA patients currently suffering from a void in safe and effective treatment options.
The fundamentals of our growth strategy are driving strong performance, and we are executing against our stated objectives. For the third consecutive quarter, the team delivered double-digit revenue growth in our Advanced Wound Care products, achieving a 13% increase year-over-year.
CEO Tim Wright Has Inspired an Entirely New Corporate Culture Rooted in Ethics, Integrity and Core Values
A company’s integrity and credibility stem from exemplary leadership, and
In keeping with this commitment, our Board of Directors and senior management team have taken decisive and positive actions to enhance shareholder value. Over the past three years, we have successfully:
- Completed our restatement of five years of audited financials;
- Re-listed on the
Nasdaq Stock Market ; - Joined the Russell 3000® and 2000® Indexes;
- Resolved substantially all outstanding litigation and regulatory actions;
- Remediated remaining material weaknesses in Company’s internal controls over financial reporting;
- Renewed our reputation and customer relationships;
- Launched an extensive investor relations, shareholder engagement and financial community outreach program;
- Outlined the Company's long-term value creation strategy at the first Investor Day under the new
MIMEDX leadership team; - Held three Annual Shareholder Meetings;
- Invested in and advanced our clinical & scientific research programs;
- Received regulatory approval to commercialize EPIFIX® in
Japan ; and - Obtained reimbursement coverage by the largest
U.S. commercial payor.
Furthermore, the Company’s executive compensation program has been rigorously structured in alignment with widely accepted best practices within our industry, taking into account competitive market data, business performance and individual performance, along with critical needs, skill sets and succession planning. The Board’s Compensation Committee, based on the input and expertise of an independent third-party compensation consultant, applies best judgement and discretion in establishing targeted pay levels, which are well within the average range in comparison with our peer group.
As outlined in our 2022 proxy statement, the Company has recently made more of executives’ total compensation subject to risk. If performance criteria are not met, the performance stock units granted in 2022 simply will not vest. Management’s compensation is directly aligned with increasing shareholder value. For example, NONE of the Company’s executive officers received annual cash bonuses at their 2021 target levels, in part due to the decline in the Company’s stock price.
Prescience Point’s Withhold Campaign Poses a Real Threat to Our Progress
This is not the first time
While navigating the COVID-19 pandemic,
Furthermore, despite
In his public communications,
DO NOT put your investment at risk. DO NOT let
Vote the Enclosed White Proxy Card Today “FOR” Both of MIMEDX’s Highly Qualified Director Nominees
As a shareholder in
We urge you to use the enclosed WHITE proxy card to vote today “FOR” both of MIMEDX’s nominees:
On behalf of your Board and the management team, thank you for your continued support.
Sincerely,
The MIMEDX Board of Directors
Your Vote Is Important, No Matter How Many or How Few Shares You Own |
You can vote by Internet, telephone or by signing and dating the WHITE proxy card and mailing it in the envelope provided. |
If you have any questions about how to vote your shares, or need additional assistance, please contact: |
MORROW |
SODALI |
MDXG@investor.Morrowsodali.com |
(203) 658-9400 |
or |
Toll-Free (800) 662-5200 |
About
Important Cautionary Statement
This press release includes forward-looking statements. Statements regarding: (i) our belief that the long term strategy we have chosen is in the best interests of our shareholders; (ii) our belief that as we continue to execute against our stated objectives and navigate our next phase of growth, we are well positioned for the future; and (iii) our belief that the experience, expertise and commitment of the
Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are uncertain and are affected by competition, access to customers, patient access to healthcare providers, and many other factors; (ii) the status, timing, results and expected results of the Company’s clinical trials, planned regulatory submissions and regulatory approvals, and our expectations regarding our ability to potentially accelerate the timing of any trial or regulatory submission, depend on a number of factors including favorable trial results, patient access, and our ability to manufacture in accordance with Current Good Manufacturing Practices (CGMP) and appropriate chemistry and manufacturing controls; (iii) the Company may change its plans due to unforeseen circumstances, or delays in analyzing and auditing results, and may delay or alter the timeline for future trials, analyses, or public announcements; (iv) our access to hospitals and health care provider facilities could be restricted as a result of the ongoing COVID-19 pandemic or other factors; (v) the results of scientific research are uncertain and may have little or no value; (vi) our ability to sell our products in other countries depends on a number of factors including adequate levels of reimbursement, regulatory approvals, market acceptance of novel therapies, and our ability to build and manage a direct sales force or third party distribution relationship; (vii) the effectiveness of amniotic tissue as a therapy for particular indications or conditions is the subject of further scientific and clinical studies; and (viii) we may alter the timing and amount of planned expenditures for research and development based on the results of clinical trials and other regulatory developments. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports filed with the
Important Additional Information
The Company, its directors, director nominees and certain of its executive officers are participants in the solicitation of proxies from the Company’s shareholders in connection with the 2022 annual meeting of shareholders (the “2022 Annual Meeting”). The Company has filed a definitive proxy statement and a WHITE proxy card with the
Contacts
Investors:
Investor Relations
404-360-5681
jhowarth@mimedx.com
Media:
404-323-4779
hdixon@mimedx.com
Source:
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