[September 20, 2017]

Viceroy Research Believes MiMedx's Employment of Kickback & Bribery Scheme Inducers Makes It Uninvestable

Viceroy Research (Viceroy) today released its research and analysis of MiMedx Group Inc. (NASDAQ: MDXG). MiMedx is a company primarily engaged in the manufacture and sale of amniotic products for the medical sector, including the United States Department of Veterans Affairs.

Viceroy Research uncover substantial previously-unreported data evidencing an incestuous hiring policy from a kickback & bribery company scheme, a possible SEC (News - Alert) enforcement investigation, and indications of channel stuffing.

While MiMedx outward appearance is one of dynamic and successful organization, the reality is much different and raises serious concerns.

For the full Viceroy report on MiMedx, click here: www.viceroyresearch.org

Follow Viceroy on Twitter (News - Alert): @ViceroyResearch

Through extensive research Viceroy has uncovered startling issues:

• Sean McCormack, the company's "Director of New Market Initiatives," allegedly directed a kickback and bribery inducement scheme at Advanced BioHealing, which resulted in the largest False Claims act settlement ever (January 2017¹ $350M). At least 54 Advanced BioHealing alumnus have been identified by Viceroy within MiMedx's sales force including at least 15 in senior/principle employment positions.
• The SEC's response to a FOIA request suggests MiMedx may already have an undisclosed SEC investigtion. Viceroy believes this puts the company at serious risk of losing its ability to supply government agencies, which makes up a substantial portion of its income.
• MiMedx's System for Award Management (SAM) government compliance certification was filed by an employee that left 3 months before the filing date. Viceroy believes material disclosures were absent regarding employees previously associated with illegally inducing sales.
• A large number of MiMedx's senior sales staff were previously employed by Advanced BioHealing, and their presence seems to be something MiMedx would prefer hidden.
• MiMedx employees/ex-employees have set up resale businesses for MiMedx products under their own names without any apparent disclosure. Viceroy calls in to question the quality of sales to such businesses and the reasoning behind the disguise.
• Whistleblowers claimed MiMedx conducted channel-stuffing operations, and while these claims were withdrawn, Viceroy highlights key factors in those claims that raise serious concerns.
• MiMedx's rapid acquisition and divestment of Stability Biologics raises serious questions about MiMedx financial literacy. It appears MiMedx bought a business engaged in channel- stuffing.
• When its longtime auditors began finding material weaknesses in the company's internal controls, MiMedx's response was to change auditors.

About Viceroy Research

Viceroy is an investigative financial research group. As global markets become more opaque and complex, and traditional gatekeepers and safeguards often compromised, investors and shareholders are at greater risk than ever of being misled or uninformed by public companies and their promoters and sponsors. Our mission is to sift fact from fiction and encourage greater management accountability through transparency in reporting and disclosure by public companies and overall improve the quality of global capital markets. Viceroy's analysts utilize experience from diverse backgrounds including finance, engineering, forensic accounting, and law. Our research is further developed and vetted through an extensive consultant network of industry specialists. Visit: www.viceroyresearch.org

View source version on businesswire.com: http://www.businesswire.com/news/home/20170920005861/en/

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