U.S. Probes MiMedx's Federal Contracts, Accounting
- Sales to government seen under Justice Department inquiry
- FBI scouring emails, sales and pay details of biotech firm
Photographer: Tomohiro Ohsumi/Bloomberg
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Biotech firm MiMedx Group, which jolted investors last week by delaying its year-end earnings announcement, is under U.S. Justice Department scrutiny related to a pair of business practices, according to people familiar with the matter.
Federal authorities are investigating whether the Marietta, Georgia-based company overcharged the government for its tissue-repair products, said a person with knowledge of the matter. The Justice Department is also looking into MiMedx’s distribution practices -- including whether it inappropriately booked sales of products that hadn’t been ordered, a practice known as channel stuffing -- according to several others familiar with that probe.