Axogen to Acquire NerveTape Maker BioCircuit Technologies for $200 Million

Axogen has agreed to acquire BioCircuit Technologies, the privately held Atlanta company that developed the NerveTape sutureless nerve repair device, for total consideration of $200 million in cash at closing, Axogen announced on Sept. 10.

The purchase price is subject to customary adjustments for cash, debt, transaction expenses and net working capital, and $1.0 million of the estimated merger consideration will be withheld at closing pending a post-closing price adjustment, according to the release. Axogen, based in Alachua, Florida, said it anticipates funding the purchase with the net proceeds of a public offering of its common stock announced the same day.

The transaction has been approved by both companies' boards and is expected to close in the fourth quarter of 2026. Closing conditions include completion of the spin-out of BioCircuit's electronics research and development business, the company said.

The product

According to Axogen, NerveTape lets surgeons align, connect and protect transected nerves without microsutures. The release's description of BioCircuit calls NerveTape "the first FDA-cleared sutureless device for repairing transected nerves." Axogen said that by reducing reliance on microsurgical skills, the device could extend nerve repair to a broader range of surgeons and care settings, and that its own sales force, surgeon relationships and hospital contracting are expected to speed adoption.

"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," Axogen President and CEO Michael Dale said in the release.

BioCircuit, which also works on biomaterials, Nitinol design and bioelectronics for nerve stimulation and recording, has been supported by small business funding from the National Institutes of Health and private investors including Alsora Capital and GRA Venture Fund, according to the release.

Financial expectations

Axogen said it expects the acquisition to be accretive to revenue growth, adjusted EBITDA margin and adjusted earnings per share in the first year after closing, while the company remains free cash flow positive. It said it will update its full-year 2026 guidance to include BioCircuit after the deal closes, and will give 2027 guidance in the first quarter of 2027.

"We believe this transaction represents disciplined capital allocation and adds an attractive growth asset," Chief Financial Officer Lindsey Hartley said.

Axogen's stock fell more than 10% to $42.46 on Thursday morning, MedTech Dive reported, adding that Axogen said in a separate statement that the equity offering is expected to raise about $208.7 million. Truist Securities analysts wrote that the dilution from the equity raise "might be viewed as a point of contention for investors," but that the growth potential, margin accretion and strategic fit made the rationale sound, according to the outlet.

BofA Securities and Foley Hoag are advising Axogen. Piper Sandler and Jones Day are advising BioCircuit.