February 5, 2015 by Brad Perriello
Organogenesis blasts back after MiMedx says it’s bailing out of a tortious interference lawsuit.
MiMedx (NSDQ:MDXG) said yesterday that it’s bailing out of a lawsuit filed against Organogenesis, alleging tortious interference related to business with the U.S. Veteran’s Affairs Dept., so it can widen the scope of its investigation of its rival.
Marietta, Ga.-based MiMedx revealed the lawsuit last month, alleging that the U.S. Veterans Affairs Dept. stopped using its allografts in June 2013 based on “malicious actions” and interference from Organogenesis. MiMedx’s EpiFix allograft competes with the Apligraf and Dermagraft skin substitutes made by Organogenesis.
“The company continues to believe that Organogenesis has engaged in misconduct against MiMedx,” according to a press release.
“However, the company has determined that, rather than expend its time and resources in a protracted litigation with Organogenesis at this juncture, the company’s efforts would be better spent continuing its investigation into the Organogenesis activities against MiMedx involving not only the Veterans Administration, but also other governmental agencies as well as MiMedx customers. MiMedx believes that proceeding in that fashion will be more efficient because it will enable the company to address any and all improper conduct engaged in by Organogenesis against MiMedx at 1 time,” MiMedx said.
