MIMEDX Announces Fourth Quarter and Full Year 2022 Operating and Financial Results Reports Highest Quarterly Net Sales Since the Fourth Quarter of 2019 Quarterly Net Sales of $74.4 million Reflect Growth of 10% with Stro

MIMEDX Announces Fourth Quarter and Full Year 2022 Operating and Financial Results

Reports Highest Quarterly Net Sales Since the Fourth Quarter of 2019

Quarterly Net Sales of $74.4 million Reflect Growth of 10% with Strong Contributions from Sales to the Surgical Market

Initiated the First of Two Registrational Clinical Trials for micronized dehydrated human amnion/chorion membrane ( mDHACM ) in

the Treatment of Knee Osteoarthritis ( KOA )

Management to Host Conference Call Today, February 28, 2023, at 5:00 PM

MARIETTA, Ga., February 28, 2023 MiMedx Group, Inc. (Nasdaq: MDXG) ( MIMEDX or the

Company ), a pioneer and leader in placental biologics, today announced operating and financial results for the fourth quarter and full year 2022.

Joseph H. Capper, MIMEDX Chief Executive Officer ( CEO ), commented, The MIMEDX team closed out 2022 on a high note, delivering the highest

quarterly net sales in a couple of years. That strong momentum has continued into 2023, driven by our best-in-class product offering. These solid results and our

continued commercial execution come despite the uneven playing field in the private physician office, specifically around Medicare reimbursement. We remain optimistic that reimbursement changes in this care setting, once finalized, can add even more

momentum to our business.

Mr. Capper continued, During my first month at MIMEDX, I have been highly impressed by the experience,

industry knowledge and competitive spirit throughout the company. As I look across MIMEDX, we have an excellent platform from which to build, our Wound & Surgical business in the U.S. is performing well, we have an emerging presence with a

first-mover advantage in Japan and a robust product pipeline including our mDHACM product with its registrational trial now underway. Furthermore, with a focus on cost management and targeted complementary investments, I am confident our

business has the potential to grow significantly over time.

Recent Operating and Financial Highlights:

Key Fourth Quarter and Full

Year 2022 Financial Metrics

MIMEDX operates as two reportable segments: Wound & Surgical and Regenerative Medicine. A summary of the Company s performance for the three

months ended December 31, 2022 and 2021 by segment is summarized below (amounts in thousands):

Three Months Ended December 31, 2021

Segment results for the year ended December 31, 2022 and 2021 can be found

at the end of this press release.

MIMEDX reported net sales for the three months ended December 31, 2022, of $74.4 million, compared to $67.4 million for the three months ended

December 31, 2021, an increase of 10.3%. Net sales growth came from solid contributions in both the Wound & Surgical end markets.

full year 2022, MIMEDX reported net sales of $267.8 million, compared to $258.6 million in the prior year period, reflecting growth of 3.6%. MIMEDX s full year 2022 net sales also reflect growth of 10.5% across its continuing

portfolio of Advanced Wound Care products.

Gross Profit and Margin

Gross profit for the three months ended December 31, 2022, was $60.0 million, an increase of $3.4 million as compared to the prior year. For the

full year 2022, gross profit was $219.5 million, reflecting an increase of $4.2 million compared to the prior year period.

Gross margin for the

three months ended December 31, 2022, was 80.7%, compared to 84.0% for the three months ended December 31, 2021. For the full year 2022, MIMEDX reported gross margin of 82.0%, compared to 83.3% for the full year 2021.

Gross margins were negatively influenced in both the fourth quarter and for the full year 2022 by impacts from production variances, primarily due to lower

general and administrative ( SG&A ) expenses for the three months ended December 31, 2022 were $50.0 million compared to $53.1 million for the three months ended December 31, 2021. SG&A expense during the fourth

quarter 2022 included increased sales commissions and the impact of severance associated with restructuring activities. Lower compensation expense, principally due to year-end incentive adjustments, more than

offset the impact of the increased costs.

For the full year 2022, SG&A expenses totaled $208.8 million, compared to $198.4 million for the

prior year period. The increase was driven by higher travel expenses, sales commissions, bad debt expense and severance costs, all of which were partially offset by the reversal of share-based compensation expense associated with the severance

activities and lower professional service expenses.

Research and development expenses were $5.4 million for the three months ended December 31,

2022 compared to $4.6 million for the three months ended December 31, 2021. The increase was primarily driven by higher costs associated with our KOA clinical program. For the full year 2022, research and

development expenses totaled $22.8 million compared to $17.3 million in 2021. In addition to the spend related to the KOA efforts, the increase in research and development expenses for

the full year was also driven by costs associated with the launches of our recent products and higher personnel costs.

Investigation, restatement and

related expense for the three months ended December 31, 2022 was an expense of $3.4 million compared to a benefit of $4.5 million for the three months ended December 31, 2021. For the full year 2022, investigation, restatement

and related expenses totaled $12.2 million compared to $3.8 million in 2021.

Net losses for the three months and full year ended

December 31, 2022, were $0.4 million and $30.2 million, respectively, compared to net income of $2.2 million for the three months ended December 31, 2021 and a net loss of $10.3 million for the year ended

Cash and Cash Equivalents

As of December 31, 2022, the Company had $66.0 million of cash and cash equivalents compared to $87.1 million as of December 31, 2021 and

$73.2 million as of September 30, 2022. The decrease during the year ended December 31, 2022 reflects payments of accrued compensation, which included the payment of annual employee incentives, and the payment of payroll taxes, some

of which had been deferred under the Coronavirus Aid, Relief, and Economic Security Act. The decrease also reflects the initial payment to Turn Therapeutics in connection with our licensing and distribution agreement.

The Company s goal is to deliver

net sales percentage growth in the low double-digits annually.

In 2023, the Company expects to see continued growth in both the wound and surgical end

markets throughout the year, particularly in the hospital and wound care clinic sites-of-service, as well as a modest contribution from sales generated in Japan.

However, in light of the ongoing uncertainty around potential changes to the U.S. Centers for Medicare and Medicaid Services reimbursement in the private physician office setting, the Company anticipates a continued challenging environment in this site-of-service during the year.

As previously communicated, the Company has

goals to achieve a Wound & Surgical segment contribution margin at or above 30% of segment net sales and corporate expenses as a percentage of sales below 20%.

KOA Registrational Clinical Trial Details

The registrational trial for KOA, which is now underway, will study approximately 470 patients randomized into three arms: (1) a control group receiving a

single intra-articular placebo injection; (2) a treatment group receiving a single intra-articular injection of 40 mg mDHACM; and (3) a treatment group receiving a single intra-articular injection of 100 mg mDHACM. Co-primary endpoints include statistically significant improvement in Pain and Function scores at six months, as measured on the Western Ontario and McMaster Universities ( WOMAC ) Osteoarthritis Index. An

additional six month follow-up evaluation is also included in the trial protocol, developed following extensive dialogue with the United States Food & Drug Administration and in partnership with the

Company s Contract Research Organizations.

Conference Call and Webcast

MIMEDX will host a conference call and webcast to review its fourth quarter and full year 2022 results on Tuesday, February 28, 2023, beginning at 5:00

p.m., Eastern Time. The call can be accessed using the following information:

U.S. Investors: 877-407-6184

International Investors: 201-389-0877

Conference ID: 13735959

A replay of the webcast will be

available for approximately 30 days on the Company s website at www.mimedx.com following the conclusion of the event.

Important Cautionary

This press release includes forward-looking statements. Statements regarding: (i) our confidence that our business has the potential to

grow significantly over time; (ii) our optimism that reimbursement changes in the private physician office care setting, once finalized, can add momentum to our business; (iii) future sales or sales growth; (iv) our goals and

expectations for future financial results, including net sales, segment contribution margins and levels of expenses; (v) our expectations regarding a continued challenging environment in the private physician office site-of-service; (vi) our expectations regarding the timing of clinical programs and trials; (vii) our expectations regarding the timing and impact of new product

launches; and (viii) the effectiveness of amniotic tissue as a therapy for any particular indication or condition. Additional forward-looking statements may be identified by words such as believe, expect,

may, plan, goal, outlook, potential, will, preliminary, and similar expressions, and are based on management s current beliefs and expectations.

Forward-looking statements are subject to risks and uncertainties, and the Company cautions investors

against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ from expectations include: (i) future sales are

uncertain and are affected by competition, access to customers, patient access to healthcare providers, the reimbursement environment and many other factors; (ii) the status, timing, results and expected results of the Company s clinical

trials and planned regulatory submissions, and our expectations regarding our ability to potentially accelerate the timing of any trial or regulatory submission, depend on a number of factors including favorable trial results, patient access, and

our ability to manufacture in accordance with Current Good Manufacturing Practices ( CGMP ) and appropriate CMC; (iii) the Company may change its plans due to unforeseen circumstances, or delays in analyzing and auditing results, and

may delay or alter the timeline for future trials, analyses, or public announcements; (iv) our access to hospitals and health care provider facilities could be restricted as a result of the ongoing

COVID-19 pandemic or other factors; (v) the results of scientific research are uncertain and may have little or no value; (vi) our ability to sell our products in other countries depends on a number

of factors including adequate levels of reimbursement, market acceptance of novel therapies, and our ability to build and manage a direct sales force or third party distribution relationship; (vii) the effectiveness of amniotic tissue as a

therapy for particular indications or conditions is the subject of further scientific and clinical studies; and (viii) we may alter the timing and amount of planned expenditures for research and development based on the results of clinical

trials and other regulatory developments. The Company describes additional risks and uncertainties in the Risk Factors section of its most recent annual report and quarterly reports filed with the Securities and Exchange Commission. Any

forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to update any forward-looking statement.

MIMEDX is a pioneer and leader in placental

biologics, developing and distributing placental tissue allografts to help address unmet clinical needs in multiple sectors of healthcare, including the Advanced Wound Care market as well as in surgical recovery settings. MIMEDX is also focused on

advancing a promising late-stage pipeline opportunity targeted at decreasing pain and improving function for patients with knee osteoarthritis. Our products are derived from human placental tissues and processed using our proprietary methods,

including the Company s own PURION process. We employ Current Good Tissue Practices, Current Good Manufacturing Practices, and terminal sterilization to produce our allografts. MIMEDX

has supplied over two million allografts, through both direct and consignment shipments. For additional information, please visit www.mimedx.com.

Selected Unaudited Financial Information