Zinger Key Points
- MIMEDX concentrates on the rapidly expanding skin substitutes market, which is projected to grow at a 12% by 2026.
- The analyst adds that over 50 publications back MIMEDX products.
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Cantor Fitzgerald has initiated coverage on MiMedx Group Inc. MDXG, a provider of a product portfolio for applications in wound care, burn, and surgical recovery.
The analyst notes that MIMEDX’s technologies target a $3.9 billion market that will grow at a 5% CAGR to $4.9 billion in 2028.
In Advanced Wound Care, MIMEDX concentrates on the rapidly expanding skin substitutes market, which is projected to grow at a 12% CAGR from $1.1 billion in 2021 to $2.0 billion by 2026, Cantor cites BCC Research. Additionally, MIMEDX anticipates the Surgical Wound Care market, which will increase at a 3% CAGR from $2.1 billion in 2023 to $2.5 billion by 2026.
Cantor initiates with an Overweight rating and a price target of $11.
The analyst adds that MIMEDX products are backed by over 50 publications, showing a 97% complete wound closure rate for diabetic foot ulcers (DFUs), faster wound healing in 23.6 days, and significant cost savings, with a median graft cost of $1,517 for EpiFix compared to $8,918 for Apligraf.
Lastly, the Cantor analyst includes a detailed survey of 30 physicians to learn the drivers in the chronic and surgical wound care space, including product choice, procedure volume, and reimbursement landscape.
According to survey respondents, MIMEDX-related volumes are showing steady to accelerating growth year-over-year and quarter-over-quarter. This suggests wider adoption and increased use of MIMEDX products in private offices, indicating a positive trend for upcoming quarters.
The analyst says the survey found that reimbursement considerations, clinical outcomes, and ease of use are key factors in using MIMEDX products over competitors.
Physicians noted competitive prices and relatively similar efficacy compared to competitors. However, the physicians are satisfied with MIMEDX’s availability/distribution overall and are more likely than not to recommend MIMEDX products.
Price Action: MDXG shares are up 1.87% at $6.82 at last check Tuesday.
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