MiMedx revives Organogenesis beef

MiMedx (NSDQ:MDXG) CEO Pete Petit last week renewed a beef with regenerative medicine rival Organogenesis, accusing that company of being behind a short-seller’s letter advising investors to bet against MiMedx.

Early this year, Marietta, Ga.-based MiMedx bailed out of a lawsuit against Canton, Mass.-based Organogenesis alleging “malicious actions” and interference from Organogenesis in the U.S. Veterans Affairs Dept. decision to stop using its allografts in June 2013. MiMedx’s EpiFix allograft competes with the Apligraf and Dermagraft skin substitutes made by Organogenesis.

Organogenesis at the time called the MiMedx lawsuit “frivolous” and “completely without merit,” crediting its threat to seek sanctions forced MiMedx to back down.

In a Dec. 23 letter to shareholders, Petit said he believes the unidentified short-seller’s note “is likely another product of Organogenesis untoward activity.”

“You may recall that our most troubled competitor, Organogenesis, has tried multiple times to injure MiMedx, and it would not surprise me if they were involved with this document,” Petit wrote. “In fact, the author makes a few direct comparisons to their products and revenues that are interesting in their detail, which would ordinarily be hard for an investor to find since the company is not public.”

Petit, noting the October dismissal of a whistleblower lawsuit brought by an Organogenesis executive that prompted a federal probe, said the short-seller’s note “seems to have inside knowledge of [Organogenesis’s] revenue levels, and it touts [Organogenesis] products and clinical trials with inaccurate descriptions.”

Organogenesis did not immediately respond to a request for comment.

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