BUZZ-Axogen drops after equity raise for $200 mln BioCircuit acquisition
AXGN•Shares fall after offering priced
Surgical device maker Axogen's shares were down 5.6% at $44.61 before the bell on Thursday after an M&A-related equity raise.
Florida-based Axogen announced pricing of about 4.9 million shares at $42.50 each for approximately $208.7 million. The offering price represents a 10.1% discount to the stock's last sale on Wednesday.
Deal and stock performance details
BofA, Jefferies, Wells Fargo and Mizuho are the bookrunners for the equity offering.
With about 53.8 million shares outstanding, Axogen had a market capitalization of about $2.5 billion through Wednesday.
At Wednesday's close, the stock was up 44% year to date and had nearly tripled over the past 12 months.
All 10 analysts covering the stock are bullish; the median price target is $55, according to LSEG.
Proceeds to fund BioCircuit acquisition
The company said it will use net offering proceeds to fund its $200 million acquisition of privately held BioCircuit Technologies, developer of NerveTape, an FDA-approved device for sutureless nerve repair.
Axogen expects the acquisition to be accretive to revenue growth, adjusted EBITDA margin and adjusted EPS in the first year following the transaction's close, which is anticipated in the fourth quarter this year, according to the statement.
