MIMEDX GROUP, INC. Q1 FY2025 earnings call

• Top line grew 4% Y/Y despite tough comparison from Q1 2024. • Surgical business had double-digit growth. • Medicare LCD implementation delayed until Jan 1, 2026, causing disruption in private office settings. • Strategic priorities: innovate/diversify product portfolio, develop/deploy programs to expand surgical market footprint, introduce programs to enhance customer intimacy. • Introduced third-party manufactured AMNIOCORD allograft CELERA as contingency for LCD delays. • R&D expenses up 17% Y/Y due to EPIEFFECT RCT and pipeline spend.

First quarter 2025 net sales were $88 million, up 4% year-over-year. By product category, wound sales were $56 million, down 2% Y/Y, and surgical sales were $32 million, up 16% Y/Y. AMNIOEFFECT in surgical grew 22% in Q1, while wound care had essentially flat revenue due to Medicare reimbursement issues, but was offset partially by third-party manufactured CELERA. Surgical business contributed significantly with 16% growth, driven by products like AMNIOEFFECT and HELIOGEN.

• Reiterates full year revenue growth outlook in high single digits with higher growth in the back half of the year. • Expects full year adjusted EBITDA margin to be above 20%. • Anticipates resetting top line growth to low double digits post Medicare reform.

• Competition in the market. • Unfavorable reimbursement environment. • Unforeseen circumstances and delays that could impact outcomes. • Risks described in the Risk Factors section of annual report on Form 10-K and quarterly report on Form 10-Q.

Q: Regarding adjusted gross profit margin expectation, Doug responded it's related to mix with some ASPs decreasing and higher ASP products offsetting, but mostly mix related to manufacturing COGS and gross margin.

A: Doug Rice Q: Chase Knickerbocker asked about progress on EPIFIX in Japan, Joe responded it's growing nicely but still relatively small in contribution and on track.

A: Joseph Capper Q: Chase Knickerbocker inquired about reimbursement landscape confidence and thoughts on LCDs and pricing reform, Joseph Capper discussed CMS's need to act on pricing methodology, his recent meeting with CMS, and the importance of physician fee schedule change.

A: Joseph Capper Q: Ross Osborn asked about efforts to prepare for better market environment, Joseph Capper talked about sales force turnover normalization, expanding product portfolio, investing in commercial strength and R&D, and potential Corp Dev assets.

A: Joseph Capper Q: Anthony Petrone asked about purchasing pattern shifts with LCD delays and DOGE tackling waste, Joseph Capper discussed DOGE's focus on fraud waste and abuse, the high spend in the category, and uncertainty around ordering pattern shifts but belief CMS will take action eventually.

A: Joseph Capper