AxoGen Inc. (NSDQ:AXGN) said today it sold 4.8 million shares to investment firm Essex Woodlands, reeling in $17.1 million for Axogen and giving Essex Woodlands a 16% stake in the company.
The funds from the sale are slated to support market growth and accelerate the company’s entry into new nerve repair markets, including the development and commercialization of new nerve repair products.
“Our partnership with Essex Woodlands puts AxoGen in an excellent position to build on the momentum we are generating in the nerve repair market as well as capitalize on our numerous opportunities. Essex Woodlands is a premier, long-term focused healthcare investor and through their investment in AxoGen we now have the resources in place to execute our current business plan as well as fund expansion. Based on our current operations, we believe the investment provides AxoGen with the resources to achieve positive operating cash flow,” CEO Karen Zaderej said in a press release.
Peripheral nerve-repair focused Axogen said it would be taking on Essex Woodlands operating partner Guido Neels as a new member of its board along with the new financing.
“We are very glad to be a shareholder of AxoGen and we look forward to supporting Karen and the management team to continue AxoGen’s momentum as the leader of innovative surgical solutions for peripheral nerve injuries. We expect a very successful growth trajectory for the company,” Neels said in a prepared statement.
In June, Axogen said it enrolled the 1st subject in a clinical trial of its Avance nerve graft. The multicenter, prospective randomized Recon study will compare the Avance graft to nerve tubes currently used for bridging peripheral nerve tissue gaps, the Florida-based regenerative medicine company said.
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