Benzinga | Jan 10, 2022 08:16AM EST

MIMEDX Sees FY22 Annual Revenue Growth Of 11%-14%; Sees Advanced Wound Care/Section 361 Adj. Revenue $236M-$240M

2022 Outlook

The Company provides the following financial outlook for 2022:

* Annual revenue growth of 11% to 14% in the Company's continuing portfolio of products Base is 2021 Advanced Wound Care (AWC)/Section 361 Adjusted Net Sales (estimated to range from $236 million to $240 million) Contribution from individual drivers varies across quarters and years Revenue Transition1 impact complete in fourth quarter of 2021 We expect 2022 growth rates to be lowest in first quarter, increasing thereafter: 1Q22: Mid-single digit percent growth 2Q22: High-single digit percent growth 3Q22: Mid- to high-teens percent growth 4Q22: High-teens to twenty percent growth

* Research and Development (R&D) spend increasing from expected 2021 level of $17 million to $22 million

* Gross margins slightly lower due to competitive dynamics and product mix

* Expectations for growth assume full access to hospitals and health care provider facilities, as a continuation or escalation of access restrictions or lockdown orders resulting from the ongoing COVID-19 pandemic would adversely affect our results. These expectations additionally anticipate the mid-2022 launch of EPIFIX(r) in Japan, following expected reimbursement approval, and the 2022 launch of the Company's new AMNIOEFFECT(tm) and Placental Collagen Matrix product lines.

1. For a discussion of the revenue transition and the defined terms, refer to Item 8, Notes to the Consolidated Financial Statements in the MiMedx Group, Inc. Annual Report on Form 10-K for the years ended December 31, 2019 and 2020, and the respective Quarterly Reports on Form 10-Q for the noted quarterly periods.