Diamonds and Dogs
9/4/13MiMedx Group Inc. (MDXG)
MiMedx Group is trading in the red today, down 36.49% at $3.85. The regenerative biomaterial company saw its shares fall hard after the FDA addressed the company in a letter. The FDA said that the company is unlawfully manufacturing drugs at one of its plants. A MiMedx plant in Georgia is licensed to package and store a number of products designed, among other things, to heal or reduce inflammation and heal tissue wounds. Because the products handled by MiMedx have been altered through a micronization process, they are defined by law as drugs and must be licensed as such by the FDA. However, MiMedx does not have the proper license to market drugs. Shares of MiMedx were able to hold up above their 52-week low of $1.81.
Rochester Medical Corporation (ROCM)
Rochester Medical is skyrocketing today, up 44.17% at $19.91. The urinary continence and urine drainage company saw its shares jump nearly 50% after news that the company would be bought out. C.R. Bard Inc. offered to buy Rochester Medical for $262 million or $20 per share, representing a 45% premium over Rochester's Tuesday close. "We believe that strengthening our position in the home care market, and specifically the large and fast-growing intermittent self-catheter segment, is strategically important at this time," Bard Chief Executive Timothy Ring said. Rochester Medical set a new 52-week high of $19.97 intraday.