Medical device filing citing a Facial Plastic Surgery & Aesthetic Medicine paper — Mimedx, 2021-12-07
MimedxMimedxNASDAQ MDXG
Filings SEC · Quote Yahoo cited a paper published in Facial Plastic Surgery & Aesthetic Medicine in its regulatory filing with the U.S. Securities and Exchange CommissionU.S. Securities and Exchange Commission
Regulator · Website as a basis for its claim. The company read the manner in which it wrote the paper and the actual scope the paper demonstrated in sequence. It described where the stock price movement over the following month compared to past cases of the same type. This is a hindsight judgment written after knowing the results. The paper was read only up to the abstract.
The disclosure wrote the paper in the press release like this
When a U.S. listed company has something to inform its shareholders, the form it files with the Securities and Exchange Commission is called 8-K. The item numbers in the document filed by Mimedx on 2021-12-07 were 7.01 Reg FD disclosure and 9.01 financial statements · exhibits. The company cited a paper published in Facial Plastic Surgery & Aesthetic Medicine in the press release attached to it. If the sentence citing the paper is translated verbatim, it reads as follows.
Mohs Defect Repair with Dehydrated Human Amnion/Chorion Membrane. Facial Plast Surg Aesthet Med. 2021 Oct 29. doi: 10.1089/fpsam.2021.0167.
What readers should first look at is where the company placed the paper in the press release. Next, they should determine whether the paper supports the company's entire claim or only a part of it. To answer the latter question, one must read the full paper. This article only read the abstract and cannot provide an answer to that.
The scope of the paper discussed in the abstract is limited to this extent.
The paper's title is Mohs Defect Repair with Dehydrated Human Amnion/Chorion Membrane and it was published in Facial Plastic Surgery & Aesthetic Medicine on 2021-10-29. The authors' affiliations are University of South Florida · Mimedx (United States) · Brown University · Dermatology Specialists. The summary at the beginning of the paper is called abstract. This article only read up to there. This paragraph was rewritten by a person after filtering a draft written by a machine reading the abstract by numerical comparison, and thus differs in quality from a full-text reading and original judgment.
This study is a retrospective case-control study comparing complex site reconstruction methods after Mohs micrographic surgery applied to elderly patients. Patients who used placental grafts and autologous tissue (grafts and full-thickness skin grafts) at the reconstruction site after Mohs surgery were compared. The group using placental grafts had significantly lower risks of infection or appearance issues of scars, scar revision surgery, and reoperation. However, it did not clarify long-term outcomes or applicability to other sites.
The abstract does not answer; the details remain in the main text and appendices. This article, which does not go there, leaves the blanks as they are. Readers compare the two citations above to determine which sentence in the abstract corresponds to the excerpt cited by the company.
One month later, the stock price was within the middle half of the sample.
The return excluding the portion attributable to market-wide movements is called excess return. Dates are recorded as trading days, counting only the days the stock market is open. In calendar terms, 20 trading days amount to approximately one month. The excess return for the day of the regulatory filing and the following month are presented in the table below.
| Period | Excess return relative to the market | Meaning |
|---|---|---|
| 5 trading days before the filing | +4.4% | The extent to which the stock had already moved before the filing |
| regulatory filing day | +0.0% | filing day or the first trading day thereafter |
| cumulative +1~+5 trading days | −8.8% | one week |
| cumulative +1~+20 trading days | −18.1% | one month |
A bundle of past cases of the same type is called a sample. The position counted from the bottom is expressed as a percentile. The one-month excess return of −18.1% in this case is within the bottom 31% of the 142 samples and is within the lower half.
| sample scale (20 trading days) | Tenth from the bottom | Fourth from the bottom | median | top 25% | top 10% | this case |
|---|---|---|---|---|---|---|
| excess return | −31.9% | −20.1% | −6.9% | +5.5% | +19.5% | −18.1% |
Half of the sample falls between the two middle marks in the table. Check the table to see whether this case falls inside or outside of that range. The sample consists of cases where U.S.-listed companies cited papers in 8-K filings over the past decade. The company itself is excluded from the sample. The numbers listed here are historical facts, not rules to apply to future cases.
After the filing, the company submitted these documents.
After the filing date, this company submitted three 8-K filings. Only the item numbers are listed here. In 8-K filings without titles, the item numbers indicate the type of content. Whether it was an earnings announcement or a contract can be identified by the number. The details of what occurred are read in the original text via each link.
- 2022-01-10 8-K Items 2.02,7.01,9.01 — Earnings announcement · Reg FD disclosure · Financial statements · Attached documents
- 2022-02-28 8-K Items 2.02,9.01 — Earnings announcement · Financial statements · Attached documents
- 2022-03-22 8-K Items 7.01,9.01 — Reg FD disclosure · Financial statements · Attached documents
What this article does not answer
This article, which reads only abstracts, cannot answer how the paper was conducted, what it re-evaluated, or what it demonstrated. How often the paper cited by the company was cited afterward can be rechecked via the citation count on OpenAlexOpenAlex
Data source · Website. What will be examined next is whether the company's next 8-K again cites the same paper.
Term Explanation
- 8-K
- A periodic report filed with the Securities and Exchange Commission when a listed company in the United States has something to inform its shareholders. The type is indicated by item numbers such as performance, contracts, and executive changes. All events in this article are derived from this document.
- Excess return
- The remainder obtained by subtracting the overall market return from the stock return. It is used to observe the movement of the company itself by removing the portion that reflects the market's overall rise or fall.
- Trading day
- A date counting only the days when the stock market is open. Since weekends and holidays are excluded, 20 trading days correspond to approximately one calendar month.
- Sample and percentile
- A bundle of past cases of the same type is a sample, and the position from the bottom is expressed as a percentile. A percentile of 10 means that nine out of ten cases performed better than this case.
- Abstract
- A summary appearing at the beginning of a paper. The author writes in a few sentences what was done, how it was done, and what results were obtained. Without reading the full text, one cannot know the details and limitations of the methods.