Tim Wright: You Have a Major Legacy Problem on Your Hands!

People with personal knowledge have reported that MiMedx has been engaged in tissue tagging “irregularities” for a very long time. Jerem Sutherland and the former ABH crowd know what I am talking about!

MiMedx uses tissue tagging, via Salesforce.com, to count when a piece of MiMedx’s tissue is used or implanted.  Tagging generates a commission, tracks implantation per FDA requirements, records procedure type – and triggers revenue recognition and alignment based on data input. MiMedx requires that “ALL tissue must be tagged.”

Under standard business practices, a piece of tissue should be “tagged” only once because the tissue can only be used or implanted one time in one patient.  But that is not what knowledgeable people have reported:  tissue has been tagged over and over again in Salesforce.com, additional commissions have been generated, AND MiMedx recognizes revenue each time a tissue is tagged.  It should be impossible to “re-tag” tissue, but there is no guard against re-tagging.  The same sales managers and AVPs are tagging the same piece of tissue over and over again. Why? To generate revenue.

Current MiMedx sales managers are also creating false or misleading FDA records regarding patient information for tissue tracking.  This is a practice that has gone on at MiMedx for years. People who work or worked at MiMedx say that MiMedx executives know about the false records at least because they are running the tissue tagging operations through Salesforce.com.

The government (SEC and US Attorney’s Office) ought to investigate the current generation of what maybe inflated revenue and profits at the same time that MiMedx is purportedly cooperating with the government agencies.  MiMedx was able to settle years of misconduct for a relatively small fine because of its cooperation.  It is an easy task to pull reports generated by Salesforce.com of the tissue identifications as well as the commissions and associated revenue from tagging.