MiMedx Group has signed a new definitive agreement with former stockholders of Stability to sell its subsidiary, Stability Biologics, back to the stockholders to focus on biopharma.
MiMedx Group is a US-based biopharmaceutical company focused on developing and commercialising regenerative and therapeutic biologics using human placental tissue allografts and patent-protected processes for several healthcare sectors.
Stability Biologics was purchased by MiMedx in January last year and manufactured and processed bioactive bone graft products and tissue allografts, including structural / particulate bone, structural allografts, demineralised bone matrix (DBM), skin products for burns and traumatic wound care, and bone grafting material known as Physio.
MiMedx CEO Parker Petit said: “We have determined that the Stability Biologics business is not a strategic fit with our new focus on becoming predominantly a biopharmaceutical company.
“While we believe the potential of Stability Biologics products continues to be significant, we expect to have better return on investment (ROI) opportunities in biopharma compared to those in the cadaver tissue category.
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“A major incentive for the MiMedx acquisition of Stability Biologics was its independent sales representative organisation.
"As part of the transaction, MiMedx will retain access to this sales representative organisation via a distributor agreement with Stability. This group of sales reps will continue to focus on certain areas of our surgical business.”
With the transaction expected to be concluded in the third quarter of this year, MiMedx anticipates booking a one-time gain of approximately $8m to $10m on the transaction.
