Axogen Inc. (NASDAQ:AXGN) on Thursday agreed to acquire a privately held medical device manufacturer, BioCircuit Technologies Inc., for $200 million in cash.
The strategic acquisition integrates NerveTape, the first FDA-approved sutureless nerve repair device, into Axogen’s existing surgical solutions for restoring peripheral nerve function.
Funding The Acquisition
To finance the $200 million purchase price, Axogen launched an underwritten public offering of 4.91 million shares of common stock, priced at $42.50 per share.
Axogen expects the stock sale to generate approximately $208.7 million in gross proceeds. Underwriters also received a 30-day option to buy an additional 736,500 shares.
Axogen will allocate any remaining net proceeds toward general corporate purposes, including working capital and capital expenditures.
Enhancing Nerve Repair Technology
BioCircuit’s NerveTape allows surgeons to align, connect, and protect severed nerves without relying on traditional microsutures.
This technology offers a faster and simpler alternative to micro-suturing, reducing the need for highly specialized microsurgical skills. Consequently, the device makes nerve repair procedures accessible to a wider variety of surgeons and medical facilities.
Axogen expects its established hospital infrastructure and direct sales force will rapidly accelerate the adoption of this new technology.
Financial Outlook And Timeline
Axogen projects the BioCircuit buyout will increase revenue growth, adjusted earnings per share, and adjusted EBITDA margins throughout the first year following the close.
Furthermore, the company expects to maintain positive free cash flow.
Management views the addition as a foundational platform that complements current products and potentially supports future expansions into new medical indications.
The companies plan to finalize the transaction during the fourth quarter of 2026. Once finalized, Axogen will issue updated full-year 2026 and 2027 financial guidance.
AXGN Price Action: Axogen shares were down 10.54% to $45.46 at the time of publication on Thursday, according to Benzinga Pro data.
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