MIMEDX GROUP, INC. Q4 FY2024 earnings call

• 2024 was excellent with full year revenue up 9%. Q4 net sales grew 7% to $93 million. Gross profit margin was 82% in Q4. Adjusted EBITDA was $20 million (21% of sales) in Q4 and $76 million (22% of sales) for the full year. • Strategic priorities: Continue to innovate and diversify product portfolio, with products like HELIOGEN, EPIEFFECT, and AMNIOEFFECT gaining traction. Expand surgical market through clinical research and product/service expansions. Enhance customer intimacy via initiatives like MiMedx Connect. • Progress on LCDs: Implementation now scheduled for April 13, 2025, with MiMedx poised to gain market share.

In Q4 2024, net sales grew 7% year-over-year to $93 million. Full year sales were $349 million, up 9% from the prior year. Wound sales in Q4 were $61 million, a 10% y-o-y growth. Surgical sales were $32 million, up 2% y-o-y (excluding certain discontinued items, up 6%). EFFECT product lines (EPIEFFECT and AMNIOEFFECT) had strong growth. HELIOGEN, the first xenograft, was in early market release. Revenue contribution: Wound sales contributed $61 million in Q4, surgical sales $32 million, with EFFECT product lines showing robust growth.

• 2025 guidance assumes LCD implementation on April 13, expecting net sales growth in the high single digits and adjusted EBITDA margin above 20%. • Long-term, aim for top-line growth in the low double digits. • No quarterly guidance provided, with revenue typically lowest in Q1 and highest in Q4.

• Medicare reimbursement issues and associated sales force turnover in select markets. • Potential market disruption from LCD implementation, including confusion in ordering patterns. • Legal/IP matters such as AXIOFIL FDA issues, Surgenex suit, and IP infringement from competitors.

Q: Specific drivers in Wound in Q4.

A: International growth, EFFECT product lines (AMNIOEFFECT and EPIEFFECT) were factors.

Q: What guidance assumes for 2025?

A: At least high single digits across the board, with potential benefit from LCD implementation but uncertainty due to market disruption.

Q: Refresh on HELIOGEN revenue opportunity?

A: In early stage of launch, contribution nominal now but expected to be bigger in 2025.

Q: Status of sales force hiring?

A: Commercial team recovered from turnover, near full strength.

Q: Thoughts on LCD implementation impact?

A: Prepared with inventory and contingency plans, expecting to benefit from market share gain despite potential disruption.

Q: Comments on legal matters?

A: AXIOFIL case reassigned, Surgenex case ongoing, IP infringement cases being addressed.

Q: EpiFix in Japan growth?

A: High growth off low base, driven by targeting key opinion leaders, but market prep takes time.