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Investing.com - Cantor Fitzgerald has maintained its Overweight rating and $11.00 price target on MiMedx Group (NASDAQ:MDXG) following a significant Medicare reimbursement policy proposal. According to InvestingPro data, the company maintains strong financials with an 82% gross margin and positive earnings of $0.27 per share over the last twelve months.
The firm’s decision comes after the Centers for Medicare & Medicaid Services (CMS) released its Calendar Year 2026 Medicare Physician Fee Schedule Proposed Rule.
The proposed rule outlines what Cantor Fitzgerald describes as "a fundamental shift in how skin substitute products are reimbursed" under Medicare.
MiMedx Group specializes in placental tissue products used for wound care and surgical applications, making Medicare reimbursement policies particularly relevant to its business model.
The maintained Overweight rating suggests Cantor Fitzgerald remains positive on MiMedx’s outlook despite the pending reimbursement structure changes that will take effect in 2026.
In other recent news, MiMedx Group Inc . reported its first-quarter earnings for 2025, meeting analyst expectations with an earnings per share (EPS) of $0.06 and surpassing revenue forecasts with $88.2 million. The company achieved a 4% year-over-year growth in net sales, driven by a 16% increase in surgical sales, although wound sales declined by 2%. Despite these positive financial results, MiMedx faces ongoing challenges with Medicare reimbursement policies. The Centers for Medicare & Medicaid Services (CMS) proposed significant changes to the reimbursement of skin substitutes, which could impact companies like MiMedx. CMS’s proposal aims to eliminate product-specific reimbursement, potentially reducing spending on these products by nearly 90%. Analyst Ryan Zimmerman from BTIG noted that while the proposal appears severe, it might lead to market consolidation. Despite the proposal’s impact, Zimmerman maintains a buy rating on Organogenesis. MiMedx’s CEO, Joe Capper, emphasized the company’s commitment to advocating for market reform and expressed confidence in future growth prospects, projecting high single-digit revenue growth for the full year.
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