MiMedx updated the stock repurchasing program with an increased value.
Here are five quick facts about the program:
1. The company previously announced a $10 million repurchasing plan in May 2014. The update increases stock repurchasing up to $20 million.
2. The repurchase timing and amount will depend on several factors, including:
• Company stock price
• Economic conditions
• Market conditions
• Regulatory requirements
• Other corporate considerations
3. MiMedx reserved the right to initiate, suspend or discontinue purchases under the stock repurchase program at any time.
4. The board of directors made this move to take advantage of the market's "overreaction to recent events," according to Chairman and CEO Parker H. Petit. The company recently filed a lawsuit against Organogenesis and was subpoenaed by the OIG in connection with marketing practices. However, the company projects to exceed guidance for 2014 full year.
5. The FDA recently issued draft guidance for human cell tissue manipulation, and MiMedx commented on the issue. However the draft guidance is finalized, the company doesn't expect an impact on 2015 revenue.