Organogenesis falls on anonymous short report

Oct. 12, 2021 11:25 AM ETOrganogenesis Holdings Inc. (ORGO)By: Jonathan Block, SA News Editor7 Comments

Economic crisis - Financial and business background

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  • Shares of Organogenesis (ORGO -18.4%) are down after a anonymous short report published in Value Investors Club accuses the company of "ripping off" the federal government with reimbursement.
  • The report alleges the wound care company has been improperly billing the feds for $250M per year.
  • It further says that the company set the price of its new amnion wound covering Affinity "exorbitantly high" which Medicare reimbursed.
  • In addition, the report alleges that the company had been providing large rebates to doctors for Affinity, making it lucrative for doctors to use.
  • However, the document says that came to end in July when CMS set a new price for Affinity.
  • In August, Organogenesis' Q2 2021 earnings beat on both EPS and revenue.

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