The Centers for Medicare & Medicaid Services (CMS) has postponed the implementation of new coverage rules for certain skin substitute grafts until January 1, 2026. This delay affects products used in the treatment of diabetic foot ulcers and venous leg ulcers. The decision to defer stems from an ongoing review of coverage policies, aiming to ensure patient access to efficacious skin substitute products backed by robust evidence.
In light of this extension, CMS has called for the submission of peer-reviewed publications and high-quality evidence from public sources. The deadline for submitting this information is November 1, 2025. The gathered evidence will be forwarded to the Medicare Administrative Contractors (MACs), who will evaluate whether adjustments to the Local Coverage Determination (LCD) are necessary.
This development could have significant implications for companies such as MiMedx (MDXG, Financial) and Organogenesis (ORGO), which produce these types of grafts. Both companies may need to continue providing strong evidence to support the effectiveness of their products to ensure consistent coverage and reimbursement under Medicare.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for MiMedx Group Inc (MDXG, Financial) is $13.75 with a high estimate of $16.00 and a low estimate of $12.00. The average target implies an upside of 104.31% from the current price of $6.73. More detailed estimate data can be found on the MiMedx Group Inc (MDXG) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, MiMedx Group Inc's (MDXG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for MiMedx Group Inc (MDXG, Financial) in one year is $6.82, suggesting a upside of 1.34% from the current price of $6.73. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the MiMedx Group Inc (MDXG) Summary page.
