Aug 02 2017
ALACHUA, Fla., (GLOBE NEWSWIRE)—AxoGen, Inc. (NASDAQ:AXGN), a global leader in developing and marketing innovative surgical solutions for peripheral nerve injuries, today reported financial results and business highlights for the second quarter ended June 30, 2017.
Second Quarter 2017 Financial Results and Recent Business Highlights
Revenue of $15.2 million, up 46% compared to $10.4 million in the second quarter of
Gross margin of 85.0% compared to 85.2% in the second quarter of 2016
Net loss for the second quarter of 2017 is $2.1 million, or $0.06 per share, compared with a net loss of $2.8 million, or $0.09 per share, in the second quarter of 2016
Adjusted EBITDA loss of $593,000 compared to Adjusted EBITDA loss of $932,000 in Q2 2016
Increased our addressable market opportunity to $2 billion to include expanded use in Oral and Maxillofacial (OMF) procedures, including nerve repair during mandible reconstruction due to benign tumor resections
Appointed Jon Gingrich as Chief Commercial Officer. He brings extensive medical device experience with Hologic and Boston Scientific and will oversee the development and execution of the company’s sales and marketing strategies
“Our continued growth reflects our focus on execution,” said Karen Zaderej, President and Chief Executive Officer. “We are building the peripheral nerve repair market and increasing confidence in our portfolio of products, as illustrated by OMF surgeons’ expanding use of our products in nerve repair during mandible reconstruction.”
Additional Second Quarter and Recent Operational Highlights
Increased active accounts in the second quarter to 510, up 36% from 374 in Q2 2016
Ended the quarter with 51 direct sales reps and 52 year-to-date, as well as 20 independent distributors
Conducted three national education symposia in the second quarter, and eight yearto-date; these surgeon lead symposia highlight recent data and emerging best practices in peripheral nerve repair
Increased the number of presentations of our surgical portfolio to a total of 18 yearto-date
Built peer reviewed clinical publications for our surgical portfolio to a total of 52. Three of these recent publications focused on the use of AxoGen products in nerve repair during mandible reconstruction
Continued market development activities in potential expansion applications, including breast reconstruction neurotization and neuropathic pain associated with lower limb total joint replacement
Increased global awareness of our product portfolio by exhibiting and conducting surgeon-lead educational programs at professional society meetings in Europe and Asia
Ended the quarter with $23.9 million in cash compared to $25.9 million at the end of Q1 2017. Net cash burn in Q2 was $2.0 million
Ended the quarter with $25 million of total bank debt, unchanged from the end of Q1 2017
“We’re pleased with our results through the first half of 2017,” added Zaderej. “We continue to increase our capabilities across the company, and will continue to develop new nerve repair applications and expand our portfolio of products where we believe we can bring meaningful solutions to current clinical challenges.”
2017 Financial Guidance
Management reiterates 2017 annual revenue will grow at least 40% over 2016 revenue and gross margins will remain above 80%.
Members of the AxoGen management team will participate at the following upcoming conferences and events:
Wedbush PacGrow Healthcare Conference in New York City on August 15
American Society for Surgery of the Hand Annual Meeting in San Francisco on September 7-9
Lake Street Capital Markets Best Ideas Growth (BIG) Conference in New York City on September 13
Dougherty & Co Investor Conference in Minneapolis on September 19
Cantor Fitzgerald Healthcare Conference in New York City on September 25
American Association of Oral and Maxillofacial Surgeons Scientific Sessions in San Francisco on October 9-14
The Company is also announcing that it will be conducting its second analyst and investor day on Monday, November 20 in New York City. This event will provide an additional opportunity to educate the investment community about the Company, as well as a more detailed review of our current market and expansion opportunities.
The Company will host a conference call and webcast for the investment community today at 4:30 p.m. ET. Investors interested in participating by phone are invited to call toll free at 1-877-407-0993 or use the direct dial-in number 1-201-689-8795. Those interested in listening to the conference call live via the Internet can do so by visiting the Investors page of the Company’s website at www.axogeninc.com and clicking on the webcast link on the
Investors home page.
Following the conference call, a replay will be available on the Company’s website at www.axogeninc.com under Investors.
AxoGen (AXGN) is a global leader in innovative surgical solutions for peripheral nerve injuries. AxoGen is the only company focused specifically on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. We are passionate about restoring nerve function and quality of life to patients with peripheral nerve injuries by providing innovative, clinically proven and economically effective repair solutions for surgeons and health care providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day, people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Damage to a peripheral nerve can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain. AxoGen’s portfolio of products includes Avance® Nerve Graft, an off-the-shelf processed human nerve allograft for bridging severed nerves without the comorbidities associated with a second surgical site, AxoGuard® Nerve Connector, a porcine submucosa extracellular matrix (ECM) coaptation aid for tensionless repair of severed nerves, AxoGuard® Nerve Protector, a porcine submucosa ECM product used to wrap and protect injured peripheral nerves and reinforce the nerve reconstruction while preventing soft tissue attachments, and Avive® Soft Tissue Membrane, a minimally processed human umbilical cord membrane that may be used as a resorbable soft tissue covering to separate tissue layers and modulate inflammation in the surgical bed. Along with these core surgical products, AxoGen also offers AcroVal® Neurosensory & Motor Testing System and AxoTouch® Two-Point Discriminator. These evaluation and measurement tools assist health care professionals in detecting changes in sensation, assessing return of sensory, grip, and pinch function, evaluating effective treatment interventions, and providing feedback to patients on nerve function. The AxoGen portfolio of products is available in the United States, Canada, the United Kingdom, and several other European and international countries.
Peter J. Mariani, Chief Financial Officer
The Trout Group – Investor Relations
Source: AxoGen, Inc.