MiMedx Group

01/08/2015 7:00 am EST

Focus: STOCKS

James Oberweis

President, Oberweis Asset Management, Inc.

Our Top Pick for 2015 is a regenerative medicine company focused on providing skin grafts to their ‘core’ market for chronic wounds such as diabetic foot ulcers, explains small-cap expert Jim Oberweis, Jr., editor of The Oberweis Report

MiMedx Group (MDXG) also faces newer sizable opportunities in the spine & sports medicine and trauma markets.

The company utilizes a patent-protected tissue processing technology known as Purion. Taken from amniotic tissue (typically from pre-planned C-sections), the product has significant advantages over competitors.

It can be stored at room temperature, has a 5-year shelf life (as opposed to six months for many competitors), and achieves better efficacy at a cost much lower than current products on the market. 

The company’s main holdup had been gaining reimbursement, though they’ve made tremendous progress over the last few years in this regard.  

They started with huge success in the VA hospitals, and then in 2013 their product gained reimbursement in the physician office setting (as opposed to just for hospital-based procedures). 

In December, MiMedx released additional clinical data which should drive further reimbursement on the commercial. 

They continue hiring sales reps rapidly to keep up with demand, with their most recent headcount at 150 after adding 70 sales heads since the start of 2014.

The company grew revenues over 100% in the latest reported quarter and we expect strong growth to continue throughout 2015 with revenue growth near 60%.

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