Mimedx agreed to buy Sanara Medtech in a cash-and-stock deal valued at about $350 million as it tries to reposition away from a wound-care business pressured by CMS reimbursement changes for skin substitutes. Mimedx described the acquisition as a way to expand its surgical footprint and shift its revenue mix. The deal terms reflect the operational stakes for Mimedx: in its second quarter, the wound segment’s sales dropped 61% year over year and total revenue declined 35%. With Sanara onboard, Mimedx expects wound care to become a smaller part of its portfolio while it scales in the broader surgical market. For deal-watchers, the transaction is a reminder that reimbursement-driven demand swings can force mid-cap biotechs to restructure—often through acquisitions rather than internal pivot timelines.