MiMedx Group (MDXG) stock plunged about 38% to a yearly low of $3.80 on Monday. The stock was battered by the refinement of the company’s leadership on the investigation of its own accounting. Also, Parker Petit has resigned as executive chief and Chairman, and William Taylor has stepped down as operating chief and president.
The independent investigation is ongoing and conducted by the Audit Committee. The company’s leadership and direction remained the main focus for the board of directors, which is looking to the future and preparing the company for its next chapter.
Petit will still remain as a director while Taylor is leaving the board. This followed the recent resignations of its finance chief and corporate controller and treasurer.
The company appointed David Coles as interim executive chief and Charles Evans as Chairman with immediate effect. The board of directors has started searching for a permanent CEO by identifying and evaluating internal and external candidates.
The Audit Committee suggested for the restatement of its prior financial statements for fiscal years 2012, 2013, 2014, 2015, and 2016, and interim periods within such years. MiMedx has withdrawn all previous forecast issued for 2018. In addition, the company continues to provide documents in response to the subpoena, which it received last year from the Securities and Exchange Commission.
Despite the stock touching a yearly low, most of the market analysts are recommending a “buy” rating with an average price target of $15.33. Looking ahead, for the next five years, analysts are expecting a 15% growth per annum.
Shares of the regenerative and therapeutic biologics developer plummeted 65% year-to-date and 71% in the past one year. The stock had been trading between $4.15 and $18.25 for the past 52 weeks.