Osiris Sues MiMedx Alleging Theft of Customers, Trade Secrets

Osiris Therapeutics filed a lawsuit against MiMedx Group for alleged theft of its clients and pre-paid commissions to Osiris’ longtime distributor Stability Biologics.

In the lawsuit, filed in the District of Maryland, Osiris claims its 2013 agreement with Stability to distribute its bone repair drug Ovation and wound inflammation treatment Grafix through the end of 2015 required the distributor to protect its confidential information, including sales figures and customer lists.

But in mid-2015, MiMedx began moves to acquire the distributor and in the second half of the year — ahead of its January 2016 acquisition of the distributor — Stability’s sales of Osiris products saw a steep dropoff, the lawsuit claims.