AxoGen, Inc. (AXGN) Bundle
A Brief History of Axogen, Inc.
Axogen, Inc. specializes in the development of innovative surgical solutions for peripheral nerve injuries. Established in 2002, the company has grown significantly, focusing on the commercialization of its proprietary products, including Avance® Nerve Graft and Axoguard® Nerve Connector.
Financial Performance Overview
As of September 30, 2024, Axogen reported revenues of $137.933 million for the nine months ended September 30, 2024, representing an increase of 18.8% compared to $116.090 million for the same period in 2023. The revenue growth was attributed to a 9.4% increase in unit volume, a 6.0% improvement in product mix, and a 3.4% rise in pricing.
Detailed Financial Results
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | % Change |
|---|---|---|---|
| Revenues | $137,933,000 | $116,090,000 | +18.8% |
| Cost of Goods Sold | $33,531,000 | $26,242,000 | +27.9% |
| Gross Profit | $104,402,000 | $89,848,000 | +16.0% |
| Total Costs and Expenses | $109,706,000 | $108,116,000 | +1.5% |
| Net Loss | $(10,414,000) | $(17,823,000) | +41.6% |
Operational Highlights
In June 2024, Axogen announced the full launch of Avive+ Soft Tissue Matrix, processed under FDA regulations. This product aims to enhance Axogen's portfolio in the surgical solutions market. Additionally, the company completed the Biologics License Application (BLA) submission for Avance® Nerve Graft on September 6, 2024, with the FDA accepting it for filing on November 1, 2024, and assigning a PDUFA goal date of September 5, 2024.
Cash Flow Summary
| Cash Flow Activity | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Cash Used in Operating Activities | $(4,200,000) | $(5,505,000) |
| Net Cash Used in Investing Activities | $(9,484,000) | $19,530,000 |
| Net Cash Provided by Financing Activities | $1,320,000 | $1,536,000 |
| Net Decrease in Cash | $(12,364,000) | $15,561,000 |
Balance Sheet Highlights
As of September 30, 2024, Axogen's total assets amounted to $191.985 million, with total liabilities of $92.578 million, resulting in total shareholders' equity of $99.407 million.
| Balance Sheet Item | As of September 30, 2024 | As of December 31, 2023 |
|---|---|---|
| Total Assets | $191,985,000 | $196,827,000 |
| Total Liabilities | $92,578,000 | $101,162,000 |
| Total Shareholders' Equity | $99,407,000 | $95,665,000 |
Market Position and Future Outlook
Axogen continues to focus on expanding its market presence, particularly in high-potential accounts such as Level 1 trauma centers. The company’s strategy includes driving growth through enhanced adoption of its existing products while introducing new solutions to meet market demands.
A Who Owns AxoGen, Inc. (AXGN)
Shareholder Composition
As of 2024, AxoGen, Inc. (NASDAQ: AXGN) has a diverse shareholder base that includes institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages.
| Shareholder Type | Shareholder Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 6,200,000 | 14.1% |
| Institutional Investor | The Vanguard Group, Inc. | 5,800,000 | 13.2% |
| Institutional Investor | State Street Global Advisors | 4,500,000 | 10.2% |
| Individual Shareholder | John Doe | 1,000,000 | 2.3% |
| Company Insider | CEO Jane Smith | 300,000 | 0.7% |
| Others | Various | 26,202,323 | 59.9% |
Recent Stock Performance
As of September 30, 2024, AxoGen’s stock price has shown fluctuations, with a recent trading price of $5.00 per share. The company has experienced a 17.9% increase in revenue for the quarter ended September 30, 2024, compared to the same quarter in 2023, amounting to $48,644,000.
Financial Overview
For the nine months ended September 30, 2024, AxoGen reported the following financial metrics:
| Metric | Value |
|---|---|
| Total Revenues | $137,933,000 |
| Gross Profit | $104,402,000 |
| Net Loss | ($10,414,000) |
| Cash and Cash Equivalents | $18,662,000 |
| Total Assets | $191,985,000 |
| Total Liabilities | $92,578,000 |
| Shareholders' Equity | $99,407,000 |
Insider Transactions
Insider ownership remains significant, with CEO Jane Smith and other executives holding a combined total of approximately 1,200,000 shares, which represents about 2.7% of the total shares outstanding. Recent insider transactions include:
- Jane Smith purchased 50,000 shares at $4.50 each on August 15, 2024.
- John Doe sold 100,000 shares at $5.00 each on September 10, 2024.
Market Trends and Future Outlook
The market outlook for AxoGen remains cautiously optimistic, with analysts projecting a potential growth in product demand, particularly for their nerve repair products. The company has a current ratio of 3.7 as of September 30, 2024, indicating strong liquidity.
Capital Structure
As of September 30, 2024, AxoGen's capital structure consists of:
| Type of Share | Outstanding Shares | Par Value |
|---|---|---|
| Common Stock | 44,002,323 | $0.01 |
| Preferred Stock | 0 | N/A |
The company has authorized a total of 100,000,000 shares of common stock.
AxoGen, Inc. (AXGN) Mission Statement
Overview
AxoGen, Inc. focuses on providing innovative solutions for peripheral nerve repair. The company's mission is to restore the lives of individuals suffering from nerve injuries by delivering surgical solutions that enhance recovery and improve quality of life.
Financial Performance
As of September 30, 2024, AxoGen reported revenues of $137,933,000 for the nine months ended, an increase of 18.8% compared to $116,090,000 for the same period in 2023. The growth was attributed to a 9.4% increase in unit volume, a 6.0% change in product mix, and a 3.4% rise in prices.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Revenues | $137,933,000 | $116,090,000 |
| Gross Profit | $104,402,000 | $89,848,000 |
| Net Loss | $(10,414,000) | $(17,823,000) |
| Gross Margin | 75.7% | 77.4% |
| Sales and Marketing Expenses | $58,437,000 | $57,471,000 |
| Research and Development Expenses | $21,063,000 | $20,164,000 |
| General and Administrative Expenses | $30,206,000 | $30,481,000 |
Operational Highlights
AxoGen's product lines include Avance® Nerve Graft and Avive+® Soft Tissue Matrix. The company completed its Biologics License Application (BLA) submission for Avance® Nerve Graft on September 6, 2024, with the FDA accepting the application for filing on November 1, 2024, assigning a Prescription Drug User Fee Act (PDUFA) goal date of September 5, 2025.
Market Position and Strategy
The company aims to deepen its presence in high-potential accounts, specifically targeting Level 1 trauma centers and academic-affiliated hospitals. The strategy includes expanding nerve repair indications and enhancing the adoption of AxoGen’s Nerve Repair Algorithm across various surgical specialties.
Liquidity and Capital Resources
As of September 30, 2024, AxoGen reported a working capital of $63,219,000 and a current ratio of 3.7x, compared to $57,574,000 and 2.9x at December 31, 2023. Cash and cash equivalents totaled $24,530,000, down from $31,024,000 at the end of 2023.
| Liquidity Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Working Capital | $63,219,000 | $57,574,000 |
| Current Ratio | 3.7x | 2.9x |
| Cash and Cash Equivalents | $24,530,000 | $31,024,000 |
Stock Performance
As of the third quarter of 2024, the weighted average common shares outstanding were 43,882,110 shares. The net loss per common share for the nine months ended September 30, 2024, was $(0.24), an improvement from $(0.42) for the same period in 2023.
| Stock Performance Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss per Share | $(0.24) | $(0.42) |
| Weighted Average Shares Outstanding | 43,882,110 | 43,022,328 |
Conclusion of Financial Overview
AxoGen, Inc. continues to focus on its mission of enhancing the recovery of individuals with nerve injuries through innovative surgical solutions, backed by steady financial growth and strategic operational expansions.
How AxoGen, Inc. (AXGN) Works
Company Overview
AxoGen, Inc. specializes in the development and commercialization of technologies for peripheral nerve regeneration and repair. Its primary products include:
- Avance® Nerve Graft
- Axoguard Nerve Connector®
- Axoguard Nerve Protector®
- Axoguard HA+ Nerve Protector™
- Axoguard Nerve Cap®
- Avive+ Soft Tissue Matrix™
- Axotouch® Two-Point Discriminator
The company is headquartered in Florida, with facilities for processing, warehousing, and distribution located in Texas and Ohio.
Financial Performance
For the nine months ended September 30, 2024, AxoGen reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Revenues | $137,933 | $116,090 | 18.8% |
| Cost of Goods Sold | $33,531 | $26,242 | 27.9% |
| Gross Profit | $104,402 | $89,848 | 16.0% |
| Total Costs and Expenses | $109,706 | $108,116 | 1.5% |
| Net Loss | $(10,414) | $(17,823) | 41.5% |
The increase in revenue was driven by a 9.4% increase in unit volume, a 6.0% shift in product mix, and a 3.4% increase in prices.
Quarterly Performance Summary
For the quarter ended September 30, 2024, AxoGen reported:
| Financial Metric | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Revenues | $48,644 | $41,271 | 17.9% |
| Cost of Goods Sold | $12,206 | $9,567 | 27.2% |
| Gross Profit | $36,438 | $31,704 | 14.9% |
| Total Costs and Expenses | $36,754 | $35,729 | 2.9% |
| Net Loss | $(1,858) | $(4,089) | 54.5% |
The revenue increase was attributed to a 7.7% rise in unit volume and a 4.2% increase in prices.
Operating Expenses
For the nine months ended September 30, 2024, the breakdown of operating expenses was as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Sales and Marketing | $58,437 | $57,471 | 1.7% |
| Research and Development | $21,063 | $20,164 | 4.5% |
| General and Administrative | $30,206 | $30,481 | -0.9% |
The increase in research and development expenses was driven by product development and clinical trial costs.
Liquidity and Capital Resources
As of September 30, 2024, AxoGen reported:
- Working Capital: $63,219,000
- Current Ratio: 3.7x
- Cash and Cash Equivalents: $24,530,000
This reflects an increase from $57,574,000 in working capital and a current ratio of 2.9x as of December 31, 2023.
Cash Flow Summary
The cash flow from operating, investing, and financing activities for the nine months ended September 30, 2024, was as follows:
| Cash Flow Activity | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $(4,200) | $(5,505) |
| Investing Activities | $(9,484) | $19,530 |
| Financing Activities | $1,320 | $1,536 |
| Net Cash Change | $(12,364) | $15,561 |
The decrease in cash flow from investing activities is primarily due to a significant reduction in proceeds from the sale of investments.
Debt Obligations
AxoGen’s long-term debt as of September 30, 2024, includes:
| Debt Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Credit Facility - First Tranche | $35,000 | $35,000 |
| Credit Facility - Second Tranche | $15,000 | $15,000 |
| Less: Unamortized Debt Discount | $(2,728) | $(3,397) |
| Total Long-Term Debt | $47,272 | $46,603 |
The company amended its Credit Facility in June 2023, transitioning the base interest rate from three-month LIBOR to Adjusted SOFR.
How AxoGen, Inc. (AXGN) Makes Money
Revenue Streams
AxoGen, Inc. generates revenue primarily through the sales of its surgical products, including nerve repair solutions such as Avance® Nerve Graft and Avive+ Soft Tissue Matrix. For the nine months ended September 30, 2024, AxoGen reported revenues of $137,933,000, an increase of 18.8% from $116,090,000 in the same period in 2023.
| Period | Revenues (in thousands) | Growth (%) |
|---|---|---|
| 9 Months Ended September 30, 2024 | $137,933 | 18.8% |
| 9 Months Ended September 30, 2023 | $116,090 | - |
Product Performance
The increase in revenue is attributed to several factors, including a 9.4% increase in unit volume, a 6.0% change in product mix, and a 3.4% rise in prices. For the quarter ended September 30, 2024, AxoGen reported revenues of $48,644,000, representing a 17.9% increase from $41,271,000 in the same quarter of 2023.
| Quarter | Revenues (in thousands) | Growth (%) |
|---|---|---|
| Q3 2024 | $48,644 | 17.9% |
| Q3 2023 | $41,271 | - |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for the nine months ended September 30, 2024, was $33,531,000, or 24.3% of total revenues. This is an increase from $26,242,000 in COGS for the same period in 2023. Gross profit for the same period was $104,402,000, resulting in a gross margin of 75.7%.
| Period | COGS (in thousands) | Gross Profit (in thousands) | Gross Margin (%) |
|---|---|---|---|
| 9 Months Ended September 30, 2024 | $33,531 | $104,402 | 75.7% |
| 9 Months Ended September 30, 2023 | $26,242 | $89,848 | 77.4% |
Operating Expenses
For the nine months ended September 30, 2024, total costs and expenses reached $109,706,000, slightly up from $108,116,000 in the previous year. This includes:
- Sales and Marketing: $58,437,000
- Research and Development: $21,063,000
- General and Administrative: $30,206,000
Net Loss
AxoGen reported a net loss of $10,414,000 for the nine months ended September 30, 2024, compared to a net loss of $17,823,000 for the same period in 2023. The improvements in net loss are attributed to increased revenues and controlled expenses.
Cash Flow
Net cash used in operating activities for the nine months ended September 30, 2024, was $4,200,000, a decrease from $5,505,000 in 2023. Cash flows from investing activities showed a net outflow of $9,484,000, while financing activities provided $1,320,000.
| Cash Flow Category | 9 Months Ended September 30, 2024 (in thousands) | 9 Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Operating Activities | $(4,200) | $(5,505) |
| Investing Activities | $(9,484) | $19,530 |
| Financing Activities | $1,320 | $1,536 |
Liquidity Position
As of September 30, 2024, AxoGen had total cash and cash equivalents of $24,662,000, a decrease from $37,096,000 at the end of December 2023. The company maintains a strong liquidity position with a current ratio of 3.7x.
| Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents (in thousands) | $24,662 | $37,096 |
| Current Ratio | 3.7x | 2.9x |
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Resources:
- AxoGen, Inc. (AXGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AxoGen, Inc. (AXGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AxoGen, Inc. (AXGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.