MiMedx CEO Parker H. “Pete” Petit and COO and President William C. “Bill” Taylor have resigned as a board-directed independent investigation continues into accounting practices, Marietta, Ga.–based MiMedx (Nasdaq: MDXG) announced today.
Petit and Taylor’s exit comes after recent departures of MiMedx’s CFO and corporate controller and treasurer. In addition to the resignations of top brass, the regenerative and therapeutic biologics company now plans to restate all of its earnings reports going back to 2012. The company says it is cooperating with U.S. Securities and Exchange Comission and Department of Justice investigations.
Petit and Taylor did not immediately respond to requests for comment over LinkedIn.
MiMedx shares were down about a third in morning trading, to around $4.40 per share, amid the news. The company’s shares dropped by another third in late February after the company announced it was delaying 2017 financial results due to an internal investigation into alleged issues with sales and distribution practices at the company.
David Coles, a managing director with global professional services firm Alvarez & Marsal, will serve as MiMedx’s interim CEO. Charles R. Evans, previously the company’s lead independent director, will serve as board chair.
“MiMedx will remain focused on executing its strategy to deliver operational and clinical successes that are expected to drive long-term value creation,” Coles said in a news release.
Edward J. Borkowski, MiMedx’s EVP and interim CFO, added that MiMedx has no outstanding debt, and has enough liquidity to fund all operational needs and planned business investment activities.
“The company continues to implement operational improvements, expand its product pipeline, grow its business and remains focused on healthcare providers and their patients,” Borkowski said.
MiMedx is developing and marketing regenerative and therapeutic biologics that use human placental tissue allografts.