Amid buzz around a short sell­er’s FBI vis­it, MiMedx stock craters fol­low­ing in­ter­nal in­ves­ti­ga­tion

A bio­phar­ma in Geor­gia tied to an un­usu­al FBI sto­ry is watch­ing its stock tum­ble this morn­ing fol­low­ing news that the com­pa­ny is launch­ing an in­ves­ti­ga­tion in­to its own prac­tices.

The com­pa­ny, called MiMedx $MDXG, has been in­volved in a nasty re­la­tion­ship with short sell­ers that re­cent­ly took a turn for the worse. Now, the com­pa­ny’s in­ter­nal in­ves­ti­ga­tion is de­lay­ing the re­lease of its fi­nan­cial re­sults, in­clud­ing its an­nu­al state­ment that would de­tail last year’s per­for­mance.

In­vestors aren’t hap­py. The stock has fall­en more than 31% as of press time Tues­day morn­ing.

This is the kind of ac­tiv­i­ty that will like­ly make short sell­ers cheer. An in­ter­est­ing de­vel­op­ment con­sid­er­ing the com­pa­ny’s re­cent his­to­ry.

Park­er “Pe­te” Pe­tit

Just days ago, news broke that a Cal­i­for­nia short sell­er named Marc Co­hodes had re­ceived a vis­it from FBI agents at his home in Sono­ma Coun­ty. Co­hodes has laid out his crit­i­cism of MiMedx all over the web, in­clud­ing hun­dreds of tweets that tear down MiMedx and the com­pa­ny’s CEO, Park­er “Pe­te” Pe­tit. What did these tweets look like? “I will bury the lit­tle fel­la in a shoe box,” one says from Oc­to­ber.

The FBI showed up at Co­hodes’ home with a print­out of some ug­ly tweets made months ear­li­er, in­clud­ing the one above. In short, the agents told the short sell­er he should stop send­ing threat­en­ing tweets about the CEO, or else.

That’s ac­cord­ing to a sto­ry from Bloomberg, which notes that Pe­tit, the lam­bast­ed CEO, hap­pens to be a top Re­pub­li­can fundrais­er in the state of Geor­gia. The re­quest to dis­patch FBI agents came from the At­lanta of­fice. Co­hodes’ lawyer called that in­to ques­tion in a Jan­u­ary 12 com­plaint let­ter to the Jus­tice De­part­ment.

“As part of your in­ves­ti­ga­tion, you should de­ter­mine how Mr. Pe­tit was able to in­flu­ence the FBI to take ac­tion de­signed to sti­fle one of his com­pa­ny’s crit­ics,” at­tor­ney David Shapiro wrote.

Marc Co­hodes. Im­age: BNN

This is not the first time MiMedx has drawn the ire of oth­ers. The com­pa­ny, which makes tis­sue grafts used to treat burns and soft tis­sue wounds, has faced law­suits brought by ex-em­ploy­ees who al­lege the com­pa­ny has fraud­u­lent­ly boost­ed its sales. It’s spent sev­er­al years chal­leng­ing the FDA, which says its grafts don’t meet reg­u­la­to­ry stan­dards.

Now, MiMedx is ad­dress­ing those con­cerns head on. The com­pa­ny’s au­dit com­mit­tee has hired le­gal and ac­count­ing ad­vis­ers to con­duct an in­ter­nal in­ves­ti­ga­tion of the al­le­ga­tions re­lat­ing to sales and dis­tri­b­u­tion. Ex­ec­u­tives are al­so re­view­ing the ac­count­ing treat­ment of cer­tain dis­trib­u­tor con­tracts, among oth­er items.

“The com­pa­ny be­lieves, based on in­for­ma­tion avail­able to date, that the out­come of such in­ves­ti­ga­tion should not have a ma­te­r­i­al im­pact on rev­enue guid­ance for 2018,” reads a state­ment.

M&A: a crit­i­cal dri­ver for sus­tain­able top-line growth in health­care

2021 saw a record $600B in healthcare M&A activity. In 2022, there is an anticipated slowdown in activity, however, M&A prospects remain strong in the medium to long-term. What are future growth drivers for the healthcare sector? Where might we see innovations that drive M&A? RBC’s Andrew Callaway, Global Head, Healthcare Investment Banking discusses with Vito Sperduto, Global Co-Head, M&A.

15 LGBTQ lead­ers in bio­phar­ma; Paul Stof­fels’ Gala­pa­gos re­vamp; As­traZeneca catch­es up in AT­TR; and more

Welcome back to Endpoints Weekly, your review of the week’s top biopharma headlines. Want this in your inbox every Saturday morning? Current Endpoints readers can visit their reader profile to add Endpoints Weekly. New to Endpoints? Sign up here.

A return to in-person conferences also marks a return to on-the-ground reporting. My colleagues Beth Synder Bulik and Nicole DeFeudis were on-site at Cannes Lions, bringing live coverage of pharma’s presence at the ad festival — accompanied by photos from Clara Bui, our virtual producer, that bring you right to the scene. You can find a recap (and links to all the stories) below.

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AstraZeneca's new Evusheld direct to consumer campaign aims to reach more immunocompromised patients.

As­traZeneca de­buts first con­sumer cam­paign for its Covid-19 pro­phy­lac­tic Evusheld — and a first for EUA drugs

AstraZeneca’s first consumer ad for Evusheld is also a first for drugs that have been granted emergency use authorizations during the pandemic.

The first DTC ad for a medicine under emergency approval, the Evusheld campaign launching this week aims to raise awareness among immunocompromised patients — and spur more use.

Evusheld nabbed emergency authorization in December, however, despite millions of immunocompromised people looking for a solution and now more widespread availability of the drug.

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Abortion-rights protesters regroup and protest following Supreme Court's decision to overturn Roe v. Wade. (AP Photo/Gemunu Amarasinghe)

Fol­low­ing SCO­TUS de­ci­sion to over­turn abor­tion pro­tec­tions, AG Gar­land says states can't ban the abor­tion pill

Following the Supreme Court’s historic decision on Friday to overturn Americans’ constitutional right to an abortion after almost 50 years, Attorney General Merrick Garland sought to somewhat reassure women that states will not be able to ban the prescription drug sometimes used for abortions.

Following the decision, the New England Journal of Medicine also published an editorial strongly condemning the reversal, saying it “serves American families poorly, putting their health, safety, finances, and futures at risk.”

De­spite a slow start to the year for deals, PwC pre­dicts a flur­ry of ac­tiv­i­ty com­ing up

Despite whispers of a busy year for M&A, deal activity in the pharma space is actually down 30% on a semi-annualized basis, according to PwC’s latest report on deal activity. But don’t rule out larger deals in the second half of the year, the consultants said.

PwC pharmaceutical and life sciences consulting solutions leader Glenn Hunzinger expects to see Big Pharma companies picking up earlier stage companies to try and fill pipeline gaps ahead of a slew of big patent cliffs. Though a bear market continues to maul the biotech sector, Hunzinger said recent deals indicate that pharma companies are still paying above current trading prices.

Joe Wiley, Amryt Pharma CEO

Am­ryt Phar­ma sub­mits a for­mal dis­pute res­o­lu­tion to the FDA over re­ject­ed skin dis­ease drug

The story of Amryt Pharma’s candidate for the genetic skin condition epidermolysis bullosa, or EB, will soon enter another chapter.

After the Irish drugmaker’s candidate, dubbed Oleogel-S10 and marketed as Filsuvez, was handed a CRL earlier this year, the company announced in a press release that it plans to submit a formal dispute resolution request for the company’s NDA for Oleogel-S10.

Sen. Thom Tillis (R-NC) (J. Scott Applewhite/AP Images)

Phar­ma-friend­ly sen­a­tor calls on FDA for a third time to show patent pro­tec­tions should­n't be blamed for high drug prices

North Carolina Republican Sen. Thom Tillis made a name for himself in the 2020 election cycle as the darling of the pharma industry, accepting hundreds of thousands in campaign contributions, even from the likes of Pfizer CEO Albert Bourla.

Those contributions have led Tillis to attempt to re-write patent laws in pharma’s favor, a move which failed to gain steam in 2019, and request for a third time since January that the FDA should help stop “the false narrative that patent protections are to blame for high drug prices.”

EMA signs off on 3 drugs re­cent­ly re­ject­ed by FDA, in­clud­ing Bio­Mar­in's new he­mo­phil­ia gene ther­a­py

The EMA’s human medicines committee on Friday recommended three new drugs for approval or conditional approval, even as their US counterparts have rejected these three for various reasons.

In a major move, CHMP offered a thumbs-up to a conditional marketing authorization for the first gene therapy to treat severe hemophilia A, although the agency cautioned that it’s so far unknown how long the effects of infusion will last.

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Joe Papa (Ryan Remiorz/The Canadian Press via AP, File)

Joe Pa­pa re­signs as chair of Bausch Health as bil­lion­aire John Paul­son takes over

Joe Papa, chair of Bausch Health, officially resigned on Thursday and the board appointed billionaire hedge fund manager John Paulson as the new chair, effective immediately.

The specialty pharma company sought to make clear that Papa’s abrupt departure “was not due to any dispute or disagreement with the Company, its management or the Board on any matter relating to the Company’s operations, policies or practices.”

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