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MiMedx Group, Inc. (Nasdaq: MDXG) ("MIMEDX" or the "Company") today announced that it has entered into a license agreement with a wound care competitor that resolves allegations of infringement of MIMEDX's patents.
Under the terms of the agreement:
- The licensee will pay MIMEDX a total of $25 million in five equal installments of $5 million.
- The first installment has been received, and the four remaining installments will be paid annually on the anniversary of the signing date.
- MIMEDX has granted the licensee a non-exclusive license to the covered patents.
"This agreement underscores the strength and value of the intellectual property portfolio MIMEDX has built since its inception. We believe our expertise in placental biologics is unmatched, and this agreement recognizes the innovation behind our product portfolio and pipeline. It also provides MIMEDX with meaningful, recurring cash over the next several years. We will continue to vigorously protect our intellectual property while investing in further innovation and differentiation in the marketplace," said Joseph H. Capper, Chief Executive Officer of MIMEDX.
The counterparty to this agreement is not involved in either of MIMEDX's two ongoing patent infringement actions, in both of which MIMEDX has secured favorable claim construction rulings. The Company also recently received a favorable reexamination decision from the U.S. Patent and Trademark Office confirming the validity of all sixteen claims of its '092 patent without amendment.
About MIMEDX
MIMEDX is a pioneer and leader focused on helping humans heal. With more than a decade and a half of helping clinicians manage chronic and other hard-to-heal wounds, MIMEDX provides a leading portfolio of products for applications in the wound care, burn, and surgical sectors of healthcare. The Company's vision is to be the leading global provider of healing solutions through relentless innovation to restore quality of life. For additional information, please visit www.mimedx.com.
Contact:
Matt Notarianni
Investor Relations
470-304-7291
mnotarianni@mimedx.com
This press release includes forward-looking statements. Statements regarding future payments under the license agreement, the anticipated benefits of the agreement, MIMEDX's intellectual property strategy and enforcement efforts, and other statements that are not historical facts are forward-looking statements. Forward-looking statements may be identified by words such as "believe," "expect," "may," "plan," "potential," "will," and similar expressions and are based on management's current beliefs and expectations. Forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those set forth in the forward-looking statements. The Company describes risks and uncertainties in the Risk Factors section of its most recent Annual Report and Quarterly Reports filed with the Securities and Exchange Commission. Any forward-looking statements speak only as of the date of this press release, and the Company assumes no obligation to update any forward-looking statement.
