MiMedx Group (MDXG) Says '687 Patent Ruled Invalid

August 11, 2016 2:53 PM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

MiMedx Group, Inc. (NASDAQ: MDXG) announced today a ruling has been rendered from the Patent Trial and Appeal Board ("PTAB") of the United States Patent and Trademark Office with regard to MiMedx's United States Patent No. 8,597,687 related to the embossment of tissues. This embossment is a method for the clinician to determine which side is "up." This patent is not related to the EpiFix® or AmnioFix® patents, other than for the embossment.

Parker H. "Pete" Petit, Chairman and CEO, stated, "The PTAB ruled that the '687 patent was invalid because of prior art rendering it obvious. We believe the finding was wrongly decided. We are disappointed in the PTAB's finding regarding this embossment patent, and we are considering whether we will appeal the decision. It is important to understand that the value of this patent was related to an easy method for the physician to determine which side should be placed 'up' on a wound. While this embossment is useful, and in my opinion, a novel concept, it is not relevant to the clinical efficacy of our products."

Notably, the decision does not impact MiMedx's PURION® process, which is embodied in many other of MiMedx's patents, such as the 8,709,494; 8,323,701; 8,642,092; and 8,703,207 patents. The decision also does not impact MiMedx's flagship EpiFix® and AmnioFix® patents, the 8,709,494 and 8,323,701 Patents, respectively, each of which successfully withstood challenges before the PTAB last year. MiMedx's active district court litigations on those patents against competitors such as Musculoskeletal Transplant Foundation, Inc. ("MTF") and Transplant Technology, Inc. d/b/a Bone Bank Allograft ("Bone Bank") and Texas Human Biologics Ltd. remain pending, and upcoming trials in those matters are unaffected by the Board's ruling on the '687 patent.

Bill Taylor, President and COO, said, "As mentioned in our press releases of August 21 and 27, 2015, and September 1, 2015, our EpiFix and AmnioFix patents have been tested in the inter partes review ("IPR") process. In separate rulings on these patents, the PTAB found no basis to challenge either patent, which means that the PTAB decided that it would not review either patent and that these patents are on solid footing. MiMedx was not only able to unequivocally defeat challenges to the '494 and '701 patents, but we were able to obtain the extraordinary outcome of having the PTAB deny even instituting a proceeding against these patents in the first place. Such a denial occurs in only a handful of cases and demonstrates the strength of the patents and adds to our confidence that we will prevail."

Petit noted, "We have a very robust patent portfolio with 28 amniotic patents issued and nearly 100 amniotic patents pending with the U.S Patent and Trademark Office. For all of our technologies, we currently have over 200 patents issued and pending."

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Hot Corp. News, Litigation, Management Comments

Add Your Comment