Capricorn Fund Takes $22 Million Stake in Nerve Repair Specialist Axogen

Capricorn Fund Managers Ltd has entered a new position in Axogen (AXGN), acquiring 687,600 shares during the first quarter of 2026. The investment is valued at approximately $22.36 million based on quarterly average pricing, with the position reaching a valuation of $22.78 million by March 31. Axogen operates in the specialized medical device sector, focusing on biologic and medical device technologies to treat peripheral nerve injuries. The company aims to reduce surgical complexity and improve patient outcomes through its proprietary off-the-shelf and specialized product lines. While Axogen has faced a decade of GAAP losses, including a $15.7 million net loss in 2025, the company reported an adjusted profit of $14.4 million, or $0.34 per share. This divergence suggests a path toward profitability that may have attracted institutional interest. A primary driver for the investment is likely the December FDA approval of the Avance product for treating peripheral nerve discontinuities. Because the product is now a licensed biologic rather than a human tissue product, the company expects reimbursement to be less challenging. Management forecasts that this approval will propel total 2026 revenue to at least 18% higher year-over-year. Furthermore, the company expects to achieve positive free cash flow within the current year. Investors are now looking toward April 28, 2026, when Axogen is scheduled to report its first-quarter financial results.