MiMedx spent the first half of 2026 learning what a Medicare payment reset does to a wound franchise that had grown on average-selling-price reimbursement. The Marietta regenerative-medicine company is no longer arguing that the old Wound economics return intact. It is using the reset, and a cash-and-stock bid for Sanara MedTech, to recast itself as an operating-room biologics platform whose residual Wound book is a volume-recovery story rather than the earnings engine. The bid values Sanara at about $350 million of enterprise value and is the cleanest statement yet that management prefers surgical mix to a wait for Wound cash to heal.
Surgical sales still grew in the June quarter while Wound dollar sales collapsed, which is the only reason the print looks like a going business rather than a runoff. The new national rate replaced the old ASP-plus model, so the dollar decline is mostly price and site-of-care mix, not a sudden disappearance of diabetic ulcers. Sequential Wound unit volume did turn higher, and hospital outpatient and wound-center mix improved, which is the first real evidence that clinicians are rewriting protocols around the new payment rather than abandoning allografts. The offset is credit quality. Legacy office customers are the source of a sharp rise in bad-debt expense that consumed a large share of the spring cost takeout.
Net sales printed well below last year even after a sequential rebound. Management reiterated the lowered full-year sales range issued after the first-quarter collapse and still talks about adjusted earnings before interest, taxes, depreciation, and amortization approaching breakeven on a standalone basis. The question the next two quarters resolve is whether Wound volume keeps compounding in hospital settings while the Sanara close converts a net-cash balance sheet into a leveraged surgical platform.