August 18, 2017 / 7:24 PM / a year ago

BRIEF-MiMedx signs agreement to divest Stability Biologics unit as part of co's strategic focus on biopharma

Aug 18 (Reuters) - MiMedx Group Inc:

* MiMedx signs definitive agreement to divest Stability Biologics subsidiary as part of company’s strategic focus on biopharma

* MiMedx Group Inc - ‍Expects to book a one-time gain on transaction of approximately $8 million to $10 million​

* MiMedx Group Inc -‍ Even without Stability Biologics revenue contribution in Q4, confident in ability to meet increased revenue guidance for year​

* MiMedx Group Inc says ‍signed agreement with former stockholders of Stability Inc to divest Stability Biologics LLC back to those stockholders​

* MiMedx Group Inc - ‍Consideration for deal to include a promissory note issued by stability biologics in principal amount of $3.5 million in favor of MiMedx ​

* ‍Assuming divestiture transaction closes in Q3, co will maintain full year revenue guidance​

* MiMedx Group Inc - MiMedx acquired Stability Biologics with a combination of cash and stock paid at closing

* MiMedx Group Inc - After divesture, MiMedx’s gross profit and operating profit margins are expected to improve

* MiMedx Group Inc - Deal includes ‍a waiver by former stockholders of Stability Inc of all claims and rights to earn-out consideration​ Source text for Eikon: Further company coverage:

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