Why Shares of MiMedx Are Collapsing Today

Shares of MiMedx Group (NASDAQ: MDXG) are down more than 60% as of 12:15 p.m. EDT today after a pair of clinical trials failed to demonstrate their intended benefits.

The biotech focuses on regenerative medicine using amniotic tissue as a platform. The results today were from trials employing its micronized dehydrated human amnion chorion membrane (mdHACM).

The first was a phase 2b study to treat knee osteoarthritis (KOA). The study will officially conclude in October. But the 446 patients enrolled did not produce a statistically significant difference between those treated with the company's product and those treated with a placebo. There was also no statistically significant difference between a cohort of patients evaluated at the three-month or six-month end point.

Source Fool.com