MiMedx (NSDQ:MDXG) shares have lost nearly a third of their value today after the company announced it is delaying the release of its 2017 financial results due to an internal investigation into alleged issues with sales and distribution practices at the company.
The Marietta, Ga.-based company said that its board’s audit committee has tapped a group of independent legal and accounting advisors to conduct an internal investigation into the matters, and that company executives are also reviewing the “accounting treatment of certain distributor contracts.”
Earnings results will be delayed until the internal investigation is complete, MiMedx said in its press release, but added that it is hopeful that the investigation will not have a material impact on its revenue guidance for the coming year.
“Our board of directors and executives believe it is in the best interests of our Company and shareholders for our audit committee to address these allegations in an internal investigation with the support of independent legal and accounting advisors. We look forward to releasing our 2017 financial results as soon as this process is complete. MiMedx has been experiencing rapid growth over the last few years as our product portfolio continues to meet significant, unmet needs in the marketplace. We are literally saving lives by saving limbs, and we expect to continue to deliver operational and clinical success in the months and years to come,” chair & CEO Parker Petit said in a press release.
Nasdaq suspended trading in the company’s stocks for little over 30 minutes earlier today after it had seen a drop in share price of over 30%.
So far today, MiMedx shares have fallen 33.5%, at $9.62 as of 10:02 a.m. EST.
Last October, MiMedx said it completed the divestiture of its Stability Biologics subsidiary back to the former stockholders of Stability, Inc.