MiMedx Group Inc (OTCMKTS: MDXG) has bounced back nicely after shedding more than 80% in market value in 2018. Positive price action supported by strong trading volumes signals renewed investor interest, as the stock continues to bounce off one-year lows.
MidMedx Price Analysis
A 100% plus rally since the start of the year signals that the Company’s prospects are finally on the upswing. The trigger behind the spike could as well be the installation of a new board of directors that has brought a new lease of life into the company.
MiMedx Group has also benefited on the touting of a new long-range strategic plan. The new plan calls for an increased focus on the advancement of the wound care segment. The Company is also to focus on the development and expansion of the current portfolio pipeline. The focus will also be on driving continued operational excellence as a way of supporting future growth and sustained productivity.
The stock has since taken a flight as investors react to a string of positive developments that underscore a phase of robust growth. A spike to the $4.47 level means MiMedx Group is on its way to the $6.50 mark, the next substantial resistance level.
A rally followed by a close above the critical technical level should reaffirm MiMedx Group breakout credentials, paving the way for it to make a run for the $9 mark. Above the $9 mark, the stock would be bullish with a higher chance of pushing for 52-week highs.
On the downside, support is seen at the $4 mark. A breach of the support level would leave the stock exposed to dropping to the $2.40 mark, the next support level, supporting the current upswing. A violation of the $2.40 support level could result in the acceleration of the sell-off level that could result in MiMedx Group plummeting back to all-time lows.
What Does MiMedx Group Do
MiMedx Group bills itself as a biopharmaceutical company, engaged in the development and marketing of regenerative biologics placental tissue allografts. The Company is also an industry elder in advanced wound care.
MiMedx Group shares are flying high on the launch of a comprehensive board refreshment plan. The Company has carried out a string of management changes as part of the ongoing restructuring drive. Under the new plan, the Company has announced six new directors.
Under the new plan, M. Kathleen Behrens Wilsey is to take over as the Chairman of the board. Other members appointed into the board include Richard J. Barry, James L. Bierman, K. Todd Newton, and Mr. Wright.
“We are pleased to have worked collaboratively with Prescience Point to identify and add new directors who bring exceptional experience and records of accomplishment to MiMedx. With the Audit Committee’s investigation complete and a plan to refresh the Board in place, the Company is now in a position to focus on its future and enhance its business, for the benefit of all stakeholders,” said Charles R. Evans, Chairman of the Board.
Long Range Strategic Plan
The installation of a new board of directors comes high on the heels on the approval of a long-range strategic plan as focus shifts towards enhancing value for shareholders. Under the new plan, MiMedx is to focus on capitalizing on market expansion opportunities. The focus will also be on broadening the access customers, and parents have to the Company’s leading technology portfolio.
According to the Chief Executive Officer, David Coles, new strategic priorities should enable MiMedx to achieve the full potential of its product portfolio. Plans are already underway to seek additional capital for implementing the new strategic plan that includes expanding the current product offering.
The company has already achieved a string of accomplishment among them being the renewal of a three-year contract with a large GPO. A world-renowned multi-facility healthcare facility has also selected MiMedx as its preferred amniotic tissue product provider.
“We are focused on building on key successes like these, which are made possible by the teamwork and collaboration demonstrated at all levels of our organization, coupled with the strength of our evidence-based products,” stated Mr. Coles.
MiMedx is on the right track as significant price appreciation complimented by increased trading volume signals renewed investor interest. The Company’s wound care products are the best in the business and expected to be a key driver of value going forward.
An end to internal investigations followed by the installation of a new board and the touting of a new strategic plan should continue to support further upswings in the stock.
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Disclosure: We have no position in MDXG and have not been compensated for this article.