A comprehensive operational review and restructuring program launched in April 2026 to align the company's cost structure with slower-than-expected recovery in the wound care market. The initiative includes a 15% workforce reduction, streamlining corporate layers (including eliminating the Chief Operating Officer role), and reducing annual operating expenses by approximately $40 million.

Expected impact: Reduces annual operating expenses by $40 million, helping the company achieve Adjusted EBITDA breakeven for the full year 2026 despite severe top-line headwinds in the wound care segment.

Strategic focus on expanding the high-margin Surgical business to achieve a more balanced business mix. This includes commercial investments, hiring specialized sales representatives, and launching new products such as the AmnioFix Thyroid Shield alongside licensing three 510(k)-cleared products for surgical applications.

Expected impact: Sustains double-digit top-line growth in the Surgical segment (which grew 13% YoY in Q1 2026 to $36 million, exceeding wound care revenue for the first time) to offset regulatory headwinds in the wound care market.

Conducting randomized controlled trials (RCTs) for key placental biologics, including completing enrollment for the EpiEffect RCT and planning a new RCT for ChorioFix to establish robust clinical efficacy data.

Expected impact: Secures long-term clinical differentiation, supports commercial insurance coverage, and drives clinician adoption in acute and chronic wound settings.