MiMedx divests Stable Biologics subsidiary in transition to focus on biopharma

MiMedx (NSDQ:MDXG) said today it inked a definitive agreement with the former shareholders of Stability Inc. to divest itself of Stability Biologics, which it acquired last January. The Marietta, Ga.-based company said the divestiture is part of its plan to transition back into a biopharmaceutical-focused company. “The transaction is expected to be completed in the 3rd quarter of 2017, and the consideration will include a promissory note issued by Stability Biologics in the principal amount of $3.5 million in favor of MiMedx and a waiver by the former stockholders of Stability, Inc. of all claims and rights to the earn-out consideration. The company expects to book a 1-time gain on this transaction of approximately $8 million to $10 million,” MiMedx CFO Mike Senken said in a press release. “Our infrastructure has been carefully adjusted and assembled to pursue our biopharma strategy. With this new strategic focus, the long-term strategy of Stability Biologics is no longer a strategic fit for MiMedx. That said, through a new “private label” distribution agreement with Stability Biologics, we have retained their key sales relationships for the spine and orthopedics areas of our surgical business,” MiMedx prez & COO Bill Taylor said in a prepared release. Formerly Nashville, Tenn.-based Stability Biologics produces tissue products for use in surgical, spinal and orthopedic sectors, including processed bioactive bone graft products...
Source: Mass Device - Category: Medical Devices Authors: Tags: Business/Financial News Mergers & Acquisitions Regenerative Medicine MiMedx Group Inc. Stability Biologics Source Type: news