Investors Cheer MiMedx Reaffirmation Of Full-Year Forecast

MiMedx Group Inc MDXG shares traded higher after the company reiterated its third quarter and full-year forecast.

The company said that based on the quarter-to-date results, it sees revenue between $62 million and $64 million for the third quarter. Street analysts estimate $63.12 million revenue. The company expressed the confidence that the new product launches like OrthoFlo would enable it to achieve the upper end of the revenue forecast.

For the full year, MiMedx reiterated its guidance of $243.5–$248 million with fourth quarter revenue to be very strong based on its new product line introductions and organic growth in its core areas. Analysts are looking for revenue of $243.59 million.

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The company's president and chief operating officer, Bill Taylor, said, "We expect that the revenue ramp up from this new product will be accelerated. In anticipation of the launch and based on the demand for a product focused on the treatment of dehisced surgical wounds and other deep complex and hard-to-heal surgical wounds, we have products from this new launch already included on certain Group Purchasing Organizations ('GPOs') and Independent Delivery Networks ('IDNs') contracts. This pre-positioning of these contracts should help to generate additional revenue in the fourth quarter."

Additionally, the company indicated that it bought back $55.1 million worth of shares from the open market at the end of August.

Following the news, the stock traded up by $0.15, or 2.04 percent, to $7.49.

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