CG MEDTECH, DIAGNOSTICS AND DIGITAL HEALTH & SERVICES FORUM - MIMEDX GROUP INC

Explicit Guidance:

• Revenue & Margins: Projected to become a roughly $400 million top-line surgical-led company in the first year of the combined MiMedx/Sonara business, with >20% adjusted EBITDA margins.
• Financial Structure: Anticipated >75% of combined revenue will stem from the surgical franchise post-acquisition.

Business-Segment Outlook:

• Surgical Franchise: Expected to drive the majority of revenue mix; currently 2/3 of Q3 revenue and growing in mid-teens volume year-over-year. Targeting expansion into ~100 million annual U.S. surgical procedures, with a focus on General Surgery (~25% of market).
• Wound Care: Recovery expected to be non-linear but showing inflection points in Q3 with improved margins and adjusted EBITDA. Management views the 2026 Medicare reimbursement reforms as behind the company, with status quo rates confirmed for 2027 (PFS/OPPS).
• Pipeline & Products: Two 510K FDA submissions for surgical innovations expected to reach market in the near term. An RCT for EpiEffect expected to publish later this year.
• Geography/Market Reach: Leveraging Sonara's hundreds of third-party agents to unlock $4 billion in incremental addressable markets (specifically no-rinse irrigation and bone fixation) not currently served by MiMedx.

Market and Competitive Outlook:

• Payer/Reimbursement: Confirmed that 2026 Medicare reform measures remain status quo for 2027, stabilizing the wound care reimbursement environment.
• Competitive Position: Secured a $25 million structured settlement with a wound care competitor regarding IP infringement; favorable court ruling on Axiophil product supports market positioning.
• Trends: Anticipated share gains in the wound care sector as patients seek care in wound centers; surgical growth driven by evidence of cost avoidance (e.g., reduced anastomotic leak rates) resonating with value analysis committees.

Macro / Industry Outlook:

• Regulatory: Awaiting final FTC approval for the Sonara acquisition, currently navigating a Second Request; aiming for completion as quickly as possible.
• Industry Structure: Viewing the 2026 Medicare overhaul as a structural reset that has concluded, shifting the immediate landscape.

Strategic Initiatives:

• M&A (Sonara): Pending acquisition of Sonara MedTech (>$100M revenue business) to accelerate growth, expand product footprint to 100% operating room focus, and provide immediate accretion to revenue and profitability.
• Inorganic Growth: Recent expansion via Heliogen and G for Derm Plus products.
• Operational Strategy: Executing a mix shift toward surgical products; maintaining >80% gross margin discipline.

Risks and Headwinds to Outlook:

• Regulatory Delays: Final FTC approval remains the primary hurdle for the Sonara deal closing.
• Wound Market Volatility: 2026 recovery is described as sluggish and non-linear due to prior reimbursement reforms, though an inflection point was signaled in Q3.

Management Tone on the Future:

• Confidence: Described as "bullish" about the future, citing a "very different" company profile than prior years.
• Narrative: Management emphasizes a transition from a wounded franchise to a surgical-led engine, highlighting a strong balance sheet ($121M cash, no debt at end of Q3) and positive free cash flow as structural advantages.
• Differentiation: Confidence in the ability to win in wound care despite past turbulence and in capturing the surgical market through evidence and expanded IP.