Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of MiMedx Group (NASDAQ: MDXG ) , a maker of patented regenerative biomaterial products that treat inflammation and aid in wound healing, jumped as much as 12% after announcing a distribution deal with Medtronic (NYSE: MDT ) .
So what: According to the press release, MiMedx has partnered with Medtronic subsidiary SpinalGraft Technologies to supply it with its Purion allograft products, which will in turn be marketed by SpinalGraft under a private label. Medtronic's subsidiary is expected to handle all promotion, marketing, and sales of MiMedx's allograft product.
Now what: There's no knocking it; this is good news for shareholders because it's rare that you land perhaps the most important medical device maker in the world -- let alone the most important one when it comes to spinal devices. However, this still doesn't excuse that circus act last month that sent MiMedx shares down by 70% at one point. MiMedx still has an unresolved untitled letter from the Food and Drug Administration to deal with, and until we have better clarity on its ability to continue to manufacture its products with the blessing of the FDA, I'd suggest keeping your distance.
Keep an eye on these two biotechs instead
The best way to play the biotech space is to find companies that shun the status quo and instead discover revolutionary, groundbreaking technologies. In The Motley Fool's brand-new FREE report "2 Game-Changing Biotechs Revolutionizing the Way We Treat Cancer," find out about a new technology that big pharma is endorsing through partnerships, and the two companies that are set to profit from this emerging drug class. Click here to get your copy today.