Axogen

For a company that is growing so fast , there seems to be a lot of poor moral and complaining. Some reps must be doing well right ? It seems like the market is still underpenatrated and a lot of growth to come ...do folks disagree? I wonder is axogen will be part of a bigger organization at some point.

 

http://dailyquint.com/2016-10-19-john-p-engels-invests-in-4000-by-purchasing-axogen-inc-axgn-stock-shares/

 

I am sorry all of you previous posters have disliked your experience with AxoGen so much. Have you looked at their stock though? An 8k investment 10 years ago would be worth $250k today. It doesn't matter if you are underpaid in the industry...the purchase of your company stock would more than make up for it! It's crazy to assume they won't be bought out eventually. One product or not, it's a freaking solid product with a lot of repeat customers.

 

WTF school did you not graduate from? "It doesn't matter if you are underpaid in the industry...the purchase of your company stock would more than make up for it!" You are either stone cold stupid, or part of management. GFY!!

 

Calm down man - I am trying to actually have a discussion about Axogen. My career is not in Sales so maybe that is why I don't feel as strongly about how much I'm paid as you do. I look for a lot of other benefits in my job package such as PTO, stock options, growth opportunity, work environment, etc.

Are you in Sales? If Axogen Reps are indeed underpaid, why do you think that is the case? Please provide meaningful information instead of attacking somebody such as you did before.

 

What is Axogens' debt load, and how much $$ have they burned through since start up?

What % of a sales persons compensation is commission?

Can a sales person raise a family or own a home on "base" only?

To what degree has management increased their salary since start up?

Looking forward to your response.

 

Yikes! Somebody must have been let go from Axogen. Seriously though, are you the former CFO? Why troll cafepharma?

 

1. $100+ million since graft was approved 9 yrs ago
2. 50-75% They dont believe in increasing base pay for reps...no loyalty
3. I couldn't...It's a short term gig with no basis quotas going up 20-40% every yr
4. Significantly the last 5 yrs...ever heard of google?

 

9 Years, This product has been on the market for 9 Years? Isn't that a long time to go as a stand alone company? Have companies like STRYKER/SYNTHES/INTEGRA taken a look at this technology to see if it will fit in their bag?

 

Stryker already played with Axg yrs ago. The have one product and that is the Avace Nerve Graft. Good niche technology, but way to costly to handle & ship. After 9 years they still trying to gain traction and show a profit. Axg would live to sell but the fact is, nobody wants them. Very mismanaged company.

 

And as we have previously disclosed and subsequent to the end of the quarter, we raised an additional $18.6 million in equity and refinanced our $25 million debt facility. Our new debt facility is with MidCap Financial and provides for up to $31 million of debt comprised of a $21 million term loan and a revolving line of credit commitment of up to $10 million.

The revolver may be increased at a later date to $15 million at our request and with the approval of MidCap. However the amount available under the revolver is subject to our borrowing base, which is tied to certain accounts receivable and inventory balances. At closing, our borrowing base was $5.4 million and we drew $4 million of the revolver for a total debt outstanding of $25 million.

The facility carries a 54-month term with interest-only payments on the term loan for the first 24 months. The interest rate on the term loan is 8% plus the greater of LIBOR or one half of 1% and at the closing resulted in a rate of 8.5%. Borrowings under the revolving line of credit bear interest at a rate of 4.5% plus the greater of LIBOR or one half of 1%, which at the closing resulted in rate of 5%.

Annual interest cost savings of this new facility is estimated to be at least $1.5 million compared to the previous debt facility. Proceeds from the new facility were used to repay and retire our previous $25 million term loan and revenue royalty interest agreement with Three Peaks Capital.

Fees and expenses associated with this agreement were approximately $700,000 and prepayment fees of approximately $2.3 million net of accrued interest were paid from the company's own funds. After giving effect of the equity raise and debt refinancing our September 30 pro forma cash would have been $31.7 million and pro forma debt would remain $25 million.

 

Translation: Axogen is "honored" to announce a net loss of $2.3 million in Q3 of 2016 and is full steam ahead to close out the year reporting another $10+ million loss. Over the last 4 years, they've only reported a cumulative net loss of $56 million. Retained earnings will eclipse the -$110 million mark. Will they approach breaking even by the end of 2020?

 

Fantastic commentary - will KZ and the gang vote themselves raises based upon this stock offering?

 

Study authors, John Elfar, M.D., associate professor of Orthopaedics, and Mark Noble, Ph.D., Martha M. Freeman, M.D., Professor in Biomedical Genetics, and their laboratory team, found that daily treatment with 4AP promotes repair of myelin, the insulating material that normally surrounds nerve fibers. When this insulation is damaged, as occurs in traumatic peripheral nerve injury, nerve cell function is impaired. These researchers found that 4AP treatment accelerates repair of myelin damage and improvement in nerve function.

These findings advance an area of research that has been stagnant for nearly 30 years and may address unmet needs of traumatically injured patients in the future. The current standard of care for traumatic peripheral nerve injury is "watchful waiting" to determine whether a nerve has the ability to spontaneously recover, or if it will require surgery.

 

Absolutely...after 8+ years of being on the market, only reporting a net loss of $10.5 million this year is great! Let's celebrate by raises and more options for all upper management and 30% quota increases for all reps! Heck, since we're rolling in cash, let's add another layer of mgmt under SM to manage our regional managers! Let's not forget to roll out our annual price increase and cut our reps commission. Happy holiday's and cheers everybody!

 

What are the RSD's making at Axogen?
It appears that Axogen is doing well in the market? Why so much negativity about the company?

 

I've never seen such gripes and crying from a sales group. Pick up your gear and go sell otherwise get out of sales. Wow, I've been a sales pro for years and would love to have this line in my sales bag. I hope the company is acquired so that the dead weight is removed.

 

What gear would this be?