AxoGen Working Its Way Out Of The Penalty Box, But Execution Is Key

With much less progress than expected on sales productivity and surgeon utilization, 2019 has been a tough year for AxoGen (AXGN). The shares have recovered quite a lot of ground from their September/October lows, but if this rally is going to continue, the company must shift to beat-and-raise quarters and reassure the Street that 20%-plus revenue growth is attainable – a development that I believe will hinge on improving sales rep productivity and surgeon utilization of the company’s grafts.

It’s not unusual for small med-tech stories to stumble, but that makes it no less frustrating for shareholders. I continue to believe that AxoGen has a differentiated product platform backed by legitimate data, but that’s not all it takes to run a successful med-tech business. These shares are still in Wall Street’s penalty box for having missed revenue growth expectations, but there is still upside into the mid-$20s over the next 12-18 months if management can deliver on improved productivity and utilization metrics and rebuild the buy side’s confidence in the name as a growth med-tech story.

Read the full article here:
AxoGen Working Its Way Out Of The Penalty Box, But Execution Is Key