Axogen drops after equity raise for $200 mln BioCircuit acquisition
BUZZ-Axogen drops after equity raise for $200 mln BioCircuit acquisition ** Surgical device maker Axogen's AXGN.O shares down 5.6% at 44.61 before the bell on Thurs after M&A-related equity raise
** Florida-based AXGN announces pricing ~4.9 mln shares at $42.50 for approx $208.7 mln; offering price represents 10.1% discount to stock's last sale on Weds
** Co to use net offering proceeds to fund $200 mln acquisition of privately held BioCircuit Technologies, developer of NerveTape, FDA-approved device for sutureless nerve repair
** AXGN expects acquisition to be accretive to revenue growth, adj EBITDA margin and adj EPS in the first year following transaction's close, which is anticipated in Q4 this year, per the statement
** BofA, Jefferies, Wells Fargo and Mizuho are bookrunners for equity offering
** With ~53.8 mln shares outstanding, AXGN had about $2.5 bln market cap through Weds
** At Weds close, stock up 44% YTD and has nearly tripled over the past 12 months
** All 10 analysts covering the stock are bullish; median PT $55, per LSEG
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))