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MDXG: Speculative Pop of the Week - views
CHARLOTTE, N.C. (Stockpickr) -- MiMedx Group (MDXG) , a manufacturer of patented regenerative biomaterial products designed to treat inflammation and help wounds heal, saw its shares plunge in a matter of minutes from $6.15 to as low as $1.81 in early afternoon trading on Wednesday, before rising to close at $3.85, after the company announced the receipt of an untitled letter from the Food and Drug Administration alleging that the company is not properly licensed at its Georgia plant to manufacture some of its products.
Lacking the proper licenses, it could be inferred that MiMedx is illegally manufacturing certain of its products.
MiMedx COO and President Bill Taylor quickly responded, declaring his surprise at the receipt of the letter. Wednesday evening, the company reiterated its full-year revenue guidance for 2013 and 2014. The company's management stressed that it believs it has done everything to meet the pre-set guidelines, but CEO Parker Petit noted that the company, if necessary, does have the ability to alter its production to meet its revenue goals.
MiMedx will be meeting with the FDA to determine what will be required, going forward.
In the meantime, if MiMedx is found to be in the right or if the company can truly meet its revenue guidance by utilizing an alternative manufacturing method, if necessary, then its share price could very easily bounce back to the previous level -- which is nearly 30% higher than its price at the time of this writing.
As you can see in the five-minute chart below, MDXG has been steadily recovering, throughout the course of today's trading.
Trader Ben Brinneman, featured on MarketWatch, Bloomberg and Reuters, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.
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