MiMedx’s amniotic fluid technology not convincing

It is a hard momentum for MiMedx, a company based in Marietta, Georgia, manufacturing and marketing products obtained from amniotic fluids and tissues. The company over the last few days has lost over 15% in capitalization as United Healthcare, one of the main US-based healthcare insurance companies, has announced it will not cover the products by MiMedx and any other company working with amniotic fluid-derived products, since there is not enough clinical evidence supporting the technology yet. MiMedx manufactures bands, membranes, plasters, and injectable liquids targeting disorders such as erectile dysfunction, osteoarthritis and baldness. Doubts over the real efficacy of MiMedx’s technology already arose some time ago, indeed the company’s shares (NasdaqCM) have lost over 70 % since the beginning of the year. The business model developed by the Marietta-based company is fairly simple: indeed, MiMedx collects amniotic tissue contained in the placenta – which are fairly economical – from hospitals and integrates them into membranes to be applied to wounds and scars, or dries and powders them, obtaining solutions to be administered subcutaneously.

(Source: WSJ)