MiMedx (NSDQ:MDXG) said today that it won coverage from Aetna Inc. for its EpiFix allograft effective December 23rd. The insurance company classified EpiFix as “medically necessary” for the treatment of partial and full-thickness neuropathic diabetic foot ulcers when used in combination with standard diabetic ulcer care.
The non-viable cellular amniotic membrane allograft helps to regenerate soft tissue by delivering extracellular matris proteins, growth factors and other proteins found in amniotic tissue, according to MiMedx.
“We are very pleased to have received coverage from Aetna and with the significant progress we have made in gaining coverage for our allografts from both the commercial, as well as the federal and state payers,” chairman & CEO Parker Petit said in prepared remarks. “We believe we have substantial opportunities ahead as we continue to grow our advanced wound care products and broaden the other therapies and market sectors we serve with our allografts. Gaining coverage from all commercial payers has been a critical strategy for MiMedx. From our viewpoint, attainment of EpiFix coverage for the vast majority of the commercial covered lives has been a significant contributor to the success we have experienced in achieving and exceeding our growth projections.”
“The clinical efficacy and cost effectiveness of tissues and products are heavily scrutinized by the commercial health plans. It is clear to us that the evidence demonstrating that our allografts benefit their members clinically, as well as provide more cost effective care, has been a significant factor in our success in attaining coverage awards from insurers,” president & chief operating officer Bill Taylor added. “We know the positive clinical and economic impact our allografts have on their covered populations, and we are always pleased when health plans come to this same conclusion.”
This month, the Marietta, Ga.-based company published information about lawsuits filed against and by the company involving 2 former sales reps. The employees were terminated after MiMedx found they had sold other company’s products, violating their contracts. After the company fired the sales reps, MiMedx filed suits related to breaches in contract and the 2 employees soon returned fire, alleging that the company engaged in fraudulent business practices.
MiMedx said yesterday that preliminary findings of an investigation determined that the allegations against the company are “without merit”.