A couple more quarters have gone by, but nothing has really changed for the good at Axogen (AXGN), as the company continues to struggle to gain real traction with its nerve repair products (Avance in particular). While explanations like disruptions and delays due to COVID-19 are valid to a point, the reality is that the adoption curve wasn’t tracking to expectations even before the pandemic, and quite a lot more is riding on the company’s upcoming RECON study read-out.
While I continue to believe in the clinical case for Avance and allograft nerve repair, the reality is that changing how surgeons practice is difficult and time-consuming. Axogen has been investing a lot of resources into training surgeons, but clinical data (namely the RECON study) are likely the best chance Axogen has to alter opinions and practice. After a nearly 50% drop since my last update, I’m still bullish on Axogen based largely on the results seen in the RANGER and MATCH studies, but this stock is only suitable for aggressive investors who can accept biotech-like binary outcomes.
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