In this ROBO Global Healthcare Technology and Innovation Index spotlight, we focus on Axogen (AXGN). The index underlies the $56.2 million ROBO Global Healthcare Technology and Innovation ETF (HTEC ). Here, we explore what makes Axogen unique within the Regenerative Medicine Subsector and dive into its recent performance.
Axogen pioneers off-the-shelf tissue products for nerve repair. No other company focuses exclusively on this segment. It offers a comprehensive portfolio of products used to repair injured nerves. These are available in the United States and 19 other countries. It derives most of its revenue from treating traumatic injuries. However, its technology also addresses oral maxillofacial (OMF), breast reconstruction neurotization, and upper extremity compression.
Axogen designs its leading product, Avance Nerve Graft, to provide the microarchitecture and guidance necessary for nerve fibers to regenerate without the potential complications associated with traditional autografts, which require a second surgical site. Avance Nerve Graft has been implanted more than 100,000 times since its launch.
In the second quarter of 2024, Axogen posted $47.9 million in revenue, a 25.6% year-over-year increase, and a gross margin of 73.8%. The company also increased its annual revenue guidance to the range of $182 million to $186 million and adjusted its gross margin guidance for the full year to be in the range of 74% to 76%. Additionally, it reiterated their expectation of being net cash flow positive cumulatively for the period from Apr. 1 through year-end.
April of this year saw the first surgical implants of Avive+ Soft Tissue Matrix, a nerve protection product that provides temporary protection and tissue separation during the critical phase of healing for nerve injuries. As of now, Axogen is the only company offering a commercially available biologically active nerve allograft to repair peripheral nerves. However, it has only penetrated 3% of its addressable market, which the company estimates to be $2.7 billion.
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