MiMedx-Sanara Merger Faces Fresh Regulatory Obstacle – SMTI Stock Falls Below This Key Support Level For The First Time In 4 Months

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The Federal Trade Commission issued a Second Request on Friday, seeking additional documents and information from both companies for the merger.

  • The request extends the mandatory waiting period to 30 days after both companies comply.
  • In July, MiMedx agreed to acquire Sanara in a cash-and-stock transaction at $35 per share.
  • The transaction was expected to close by the end of the year.

Shares of Sanara MedTech (SMTI) and MiMedx Group (MDXG) slumped on Friday after a regulatory request regarding their proposed merger to form a regenerative medicine company.

The Federal Trade Commission (FTC) issued a Second Request, seeking additional documents and information from both companies as part of its antitrust review, raising uncertainty about the timeline for the deal’s closure.

The request extends the mandatory waiting period to 30 days after both companies comply. The latest development could delay the merger beyond its original year-end target.

SMTI stock was down 5.5%, dropping below its 50-day moving average (50-DMA) for the first time since June. Meanwhile, MDXG shares, which were also testing their 50-DMA, were down 2.8%.

MDXG, SMTI Expect $400M Revenue In FY2027

In July, MiMedx agreed to acquire Sanara in a cash-and-stock transaction at $35 per share. Sanara shareholders will receive $33 in cash and 0.4735 MiMedx shares for each share held.

MiMedx said the combination aims to create a larger regenerative medicine company that caters to multiple surgical specialties, including wound care, soft-tissue repair, and bone fixation.

MiMedx expects the acquisition to nearly double its surgical revenue and generate more than $20 million in annual cost savings. The combined business is targeting over $400 million in full-year 2027 revenue and adjusted earnings before interest, tax, depreciation and amortization (EBITDA) margin above 20%.

Retail Remains Bearish On MDXG, SMTI

Retail sentiment surrounding both MDXG and SMTI on Stocktwits remained in the ‘bearish’ territory over the past 24 hours, amid ‘high’ message volumes.

The stocks have had a contrasting 2026 so far, with SMTI shares gaining more than 44% while MDXG stock has slumped nearly 30%.

Also read: Lilly’s Foundayo Pill Gets European Regulatory Backing – LLY Stock Heads For Best Week In Nearly Four Months

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