Axogen has entered into a definitive agreement to acquire BioCircuit Technologies for $200 million in cash, adding NerveTape, the first FDA-approved device for sutureless peripheral nerve repair, to its portfolio of nerve repair technologies.
The $200 million purchase price will be paid at closing and is subject to customary adjustments for cash, debt, transaction expenses and working capital. Axogen expects the transaction to close in the fourth quarter of 2026, subject to customary conditions and completion of the spinout of BioCircuit’s electronics research and development business.
Axogen plans to finance the acquisition using net proceeds from a public offering of its common stock announced alongside the transaction.
BioCircuit’s NerveTape is designed to allow surgeons to align, connect and protect severed nerves without microsutures. Axogen said the system provides a simpler and faster alternative to traditional microsuturing and could make nerve repair accessible to a wider group of surgeons and care settings.
Axogen expects to use its direct sales organization, surgeon relationships, reimbursement capabilities and hospital contracting infrastructure to accelerate adoption of NerveTape.
BioCircuit’s technology also adds biomaterials, precision Nitinol design and manufacturing, and bioelectronics capabilities that could support additional nerve repair and neuromodulation products.
Axogen expects the transaction to be accretive to revenue growth, adjusted EBITDA margin and adjusted EPS in the first year following closing while remaining free cash flow positive.
Assuming the transaction closes during 2026, the company expects BioCircuit to add to 2027 revenue and be accretive to gross margin and adjusted EBITDA margin.
BofA Securities is serving as financial advisor to Axogen and Foley Hoag is its legal advisor. Piper Sandler is advising BioCircuit financially, with Jones Day serving as legal counsel.
KEY QUOTES:
“This acquisition advances our mission to restore health and improve quality of life by making restoration of peripheral nerve function an expected standard of care,” said Michael Dale, President and Chief Executive Officer of Axogen. “NerveTape’s sutureless approach makes high-quality nerve repair simpler and more accessible for surgeons, and we believe it meaningfully advances our innovation agenda by adding a differentiated technology to simplify one of the most challenging aspects of nerve surgery.”
Michael Dale, President and Chief Executive Officer of Axogen
“BioCircuit has developed a highly differentiated technology that complements our existing portfolio and expands our ability to serve surgeons across the continuum of nerve repair,” said Lindsey Hartley, Chief Financial Officer of Axogen. “We believe this transaction represents disciplined capital allocation and adds an attractive growth asset that is expected to be accretive to revenue growth, adjusted EBITDA margin and adjusted earnings per share in the first year following close, while maintaining our focus on cash generation.”
Lindsey Hartley, Chief Financial Officer of Axogen
“The combination of our two companies could not be a better outcome for patients and surgeons. Axogen’s vision to make restoration of peripheral nerve care, standard of care and our commitment to make nerve repair simpler, faster, and more effective represents the best possible outcome for all stakeholders.” said Michelle Jarrard, Chief Executive Officer of BioCircuit. “Axogen’s commercial reach, reimbursement expertise and surgeon relationships create an ideal platform to expand the impact of NerveTape and bring this technology to more patients.”
Michelle Jarrard, Chief Executive Officer of BioCircuit Technologies
