ATLANTA–(BUSINESS WIRE)–MiMedx Group, Inc. (OTCBB:MDXG – News) (the “Company”) announced today that it has sold the assets of its upper extremities business, LeveL Orthopedics, in separate transactions valued at over $1 million. The majority of the assets were sold to UPex Holdings, LLC (“UPex”), a design and distribution company that focuses on upper extremity orthopedic products. UPex purchased eight patent applications and the related intellectual property for $300,000 cash, a $100,000 promissory note, and up to $630,000 in royalty obligations. Two provisional patent applications and the related intellectual property were sold to the primary inventor, Dr. Thomas Graham, in a separate transaction in September.
Parker H. ‘Pete’ Petit, Chairman and CEO of MiMedx Group, said, “Over the course of the past six months we refined our corporate strategy to focus on bringing our innovative biomaterial technologies to market; therefore, we made the decision to divest the assets of our LeveL Orthopedics division, which is focused on technology for the upper extremities market. This was a difficult decision because we believe the LeveL technology will garner a significant market position once the product line is fully developed. That said, our management and board believe it is critical for us to focus our resources on our biomaterials.”
The sale process was led by Scott Chesky of the Maren Group, an investment banking firm with strong expertise in healthcare, and Bill Taylor, who was recently appointed as MiMedx Group President and Chief Operating Officer. Regarding the sale, Taylor said, “Not only will the LeveL sale enable MiMedx Group to focus on our biomaterial platform strategy, but by finding a new home for the technology in UPex, I believe that surgeons and patients will soon enjoy the benefits of the innovations embodied in the LeveL intellectual property.” Regarding his recent appointment as the Company’s President and Chief Operating officer, Taylor commented, “MiMedx has some incredibly talented people and two phenomenal platform technologies that have great market potential, and I am honored to be a part of this organization.”
With respect to the Company’s remaining business assets, Petit said, “Our transition from a development company to an operating company continues as planned and is nearly complete. We expect our first product sales before the end of this year. We have strengthened our board of directors and our management team, and we are well positioned to take these innovative technologies into the market place.”