Sanara MedTech Agrees to Be Acquired by MIMEDX
Second-quarter net revenue was $28.1 million as year-over-year growth slowed to 9% from 19% in the first quarter.
Sanara MedTech Inc. (SMTI), a medical technology company focused on surgical products, said it had entered an agreement under which it is expected to be acquired by MIMEDX, a provider of wound care, burn and surgical products, after reporting second-quarter results in which revenue growth slowed.
The combination, which remains subject to customary closing conditions, is expected to pair Sanara’s surgical portfolio of collagen particulate, wound irrigation and bone fixation with MIMEDX’s surgical products, President and Chief Executive Officer Seth Yon said.
Net revenue for the three months ended June 30, 2026 was $28.1 million, up 9% from $25.8 million a year earlier. That pace slowed from 19% growth in the first quarter of 2026, when revenue was $27.8 million.
Soft tissue repair products, including CellerateRX Surgical, BIASURGE and FORTIFY TRG, accounted for $25.2 million of the quarter’s sales, up 11% from $22.7 million a year earlier. Bone fusion products were $2.9 million.
Gross profit was $26.2 million, or 93% of net revenue, compared with $23.9 million, or 92%, a year earlier. Higher gross profit and margin were primarily due to the revenue mix and product mix.
Operating income fell to $1.8 million from $2.5 million a year earlier. Operating expenses rose 14% to $24.4 million, or 86.8% of net revenue, from $21.4 million, or 82.9%.
Selling, general and administrative expenses were $22.6 million. The increase was primarily due to about $1.2 million of higher direct sales and marketing, about $0.6 million of compensation and about $1.1 million of legal and advisory services associated with corporate strategic initiatives. Research and development was $1.2 million.
Continuing operations swung to a net loss of $0.4 million, or $0.05 a share, from net income of $0.5 million, or $0.05 a share, a year earlier. The loss was primarily due to higher SG&A, interest expense on the CRG term loan and a larger share of equity-method losses, partially offset by revenue growth.
Other expense was $2.2 million. The increase was primarily due to cash interest on the CRG term loan, which in the year-ago quarter had been paid in kind, and a share of losses from equity-method investments of $0.4 million versus $0.2 million. Adjusted EBITDA was $5.0 million.
Net loss from discontinued operations, covering Tissue Health Plus, was $41,720, compared with a $2.5 million loss a year earlier.
Cash and cash equivalents were $15.4 million at June 30, 2026, and long-term debt was $46.5 million.
Yon said the company remained focused on expanding penetration of CellerateRX Surgical, BIASURGE and OsStic, a licensed synthetic injectable structural bio-adhesive bone void filler that remains on track to be introduced in the first quarter of 2027.