Axogen signed a definitive agreement on September 10 to buy BioCircuit Technologies for $200 million in cash. About $1.0 million is held back for a post-closing purchase price adjustment. Axogen expects to close in the fourth quarter, and one condition is that BioCircuit spin out its electronics research group first.
The asset is NerveTape. FDA cleared it under K233533 on February 12, 2024, against 21 CFR 882.5275, product code JXI. It is porcine submucosa carrying embedded microhooks, wrapped around two nerve ends to hold the repair without microsutures. BioCircuit is based in Atlanta and was backed by NIH small business grants, Alsora Capital and the GRA Venture Fund.
Axogen is paying for it with equity. The company priced about $208.7 million of stock at $42.50 a share, with a 30-day option on 736,500 more, and BofA Securities and Wells Fargo Securities running the books. Shares fell more than 10% on the day, to $42.46.
Two things are worth pricing off this. A single cleared device with 31 months on the market fetched $200 million all cash, with no milestone tail. And the buyer required the research arm to leave before closing, which is a reminder that acquirers pay for the cleared product, not the pipeline attached to it.