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Axogen

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anonymous said:
Stryker has made many new acquisitions why wasn't Axogen one of them?
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Simple, Stryker is not stupid. The market is extremely small and the costs involved for such a product does not make for good profit. Hence why AxoGen has never turned a profit to date. Also, in order to stay afloat they constantly piss on their end users by raising prices well beyond acceptable market range. No smart device company will ever touch them.
 




Interesting thread... Some truth in this thread as well as some exagerration. Avance is a solid premium product in a niche market. Their marketing officer who left used to ramble on about Axogen's target market being $1.2 billion...lol. In reality, it's probably a $100 million mkt as it stands(decent).

Axogen's 2015 sales of $27 million sounds good until you see that they actually reported a net loss on the year of $13.4 million. After being on the mkt for 8+ yrs, how are they able to consistently report net losses of $10+ million and continue to raise funds? No exagerration, the company has lost close to $75 million since inception. A good portion of the sales growth the last several years can be attributed to significant price increases(approx. 15%/yr). They need to be very careful with repeated aggressive annual price increases in today medical climate or they risk upsetting facilities and pricing themselves out of the mkt.

In regards to their sales leadership, SM comes across like a nice guy who has the reps best interest in mind. However, at the end of the day, he as well as upper mgmt have no loyalty to their reps. Every January, they reduce commissions and attempt to spin it like it's a positive thing. They are putting associate reps in the few seasoned reps territories and reducing territories left and right. SM continues to display his cronyism by bringing in past Posis regional mgrs instead of promoting Axogen's few tenured reps. The sales quotas for the most part are a joke. Reps have zero input into their quota and are simply given a pie in the sky number approx 40-60% higher than the previous yr. It's a travesty the Philly rep wasnt promoted to RM after 6+ yrs of being a top 5 rep.

In short, these are reasons why their rep turnover continues to be very high. Axogen is a decent startup if you are newer to device and are ok with higher turnover risk and a pay plan that is dialed back every year. If you are sucessful for a yr and actually get near your quota, dont be surprised if you're "rewarded" with a territory reduction and/or an associate rep that will eventually take some of your territory.

Lastly, they need to find another product offering outside of the graft and wrap. If they do this and learn how to start valuing their reps, the future could be bright.
 




anonymous said:
Interesting thread... Some truth in this thread as well as some exagerration. Avance is a solid premium product in a niche market. Their marketing officer who left used to ramble on about Axogen's target market being $1.2 billion...lol. In reality, it's probably a $100 million mkt as it stands(decent).

Axogen's 2015 sales of $27 million sounds good until you see that they actually reported a net loss on the year of $13.4 million. After being on the mkt for 8+ yrs, how are they able to consistently report net losses of $10+ million and continue to raise funds? No exagerration, the company has lost close to $75 million since inception. A good portion of the sales growth the last several years can be attributed to significant price increases(approx. 15%/yr). They need to be very careful with repeated aggressive annual price increases in today medical climate or they risk upsetting facilities and pricing themselves out of the mkt.

In regards to their sales leadership, SM comes across like a nice guy who has the reps best interest in mind. However, at the end of the day, he as well as upper mgmt have no loyalty to their reps. Every January, they reduce commissions and attempt to spin it like it's a positive thing. They are putting associate reps in the few seasoned reps territories and reducing territories left and right. SM continues to display his cronyism by bringing in past Posis regional mgrs instead of promoting Axogen's few tenured reps. The sales quotas for the most part are a joke. Reps have zero input into their quota and are simply given a pie in the sky number approx 40-60% higher than the previous yr. It's a travesty the Philly rep wasnt promoted to RM after 6+ yrs of being a top 5 rep.

In short, these are reasons why their rep turnover continues to be very high. Axogen is a decent startup if you are newer to device and are ok with higher turnover risk and a pay plan that is dialed back every year. If you are sucessful for a yr and actually get near your quota, dont be surprised if you're "rewarded" with a territory reduction and/or an associate rep that will eventually take some of your territory.

Lastly, they need to find another product offering outside of the graft and wrap. If they do this and learn how to start valuing their reps, the future could be bright.
Click to expand...

How is KZ allowed to pay herself almost $800k/yr and SM $500k/yr when the company is hemorrhaging investor's money to the tune of $13+ mil/yr? Hasn't the product been on the market for almost a decade? Why are they still losing this much every year and upper mgmt is allowed to pay themselves like they are a profitable venture?

Meanwhile, SM canned their tenured TX rep after he was one of their top sales guys for 5 yrs. Apparently, he had his first down sales yr and was shown the door. The other tenured top sales guy based in the Southeast jumped ship after SM put an associate rep in his territory and was about to cut his territory. Par for the course with this company.
 




anonymous said:
Interesting thread... Some truth in this thread as well as some exagerration. Avance is a solid premium product in a niche market. Their marketing officer who left used to ramble on about Axogen's target market
$1.2 billion...lol. In reality, it's probably a $100 million mkt as it stands(decent).
Axogen's 2015 sales of $27 million sounds good until you see that they actually reported a net loss on the year of $13.4 million. After being on the mkt for 8+ yrs, how are they able to consistently report net losses of $10+ million and continue to raise funds? No exagerration, the company has lost close to $75 million since inception. A good portion of the sales growth the last several years can be attributed to significant price increases(approx. 15%/yr). They need to be very careful with repeated aggressive annual price increases in today medical climate or they risk upsetting facilities and pricing themselves out of the mkt.

In regards to their sales leadership, SM comes across like a nice guy who has the reps best interest in mind. However, at the end of the day, he as well as upper mgmt have no loyalty to their reps. Every January, they reduce commissions and attempt to spin it like it's a positive thing. They are putting associate reps in the few seasoned reps territories and reducing territories left and right. SM continues to display his cronyism by bringing in past Posis regional mgrs instead of promoting Axogen's few tenured reps. The sales quotas for the most part are a joke. Reps have zero input into their quota and are simply given a pie in the sky number approx 40-60% higher than the previous yr. It's a travesty the Philly rep wasnt promoted to RM after 6+ yrs of being a top 5 rep.

In short, these are reasons why their rep turnover continues to be very high. Axogen is a decent startup if you are newer to device and are ok with higher turnover risk and a pay plan that is dialed back every year. If you are sucessful for a yr and actually get near your quota, dont be surprised if you're "rewarded" with a territory reduction and/or an associate rep that will eventually take some of your territory.

Lastly, they need to find another product offering outside of the graft and wrap. If they do this and learn how to start valuing their reps, the future could be bright.
Click to expand...

Nice post and quite accurate. However, I would in no way hold hope that AxoGen would suddenly change their business model and begin valuing sales reps. It will simply never happen. Their comp plan is crap because their quotas ( like you say) are made out of thin air. I'm surprised they have held on to the couple of remaining tenured reps. Any rep looking to make money, grow with a compnay, be valued, challenged or respected, need apply.
 




anonymous said:
Nice post and quite accurate. However, I would in no way hold hope that AxoGen would suddenly change their business model and begin valuing sales reps. It will simply never happen. Their comp plan is crap because their quotas ( like you say) are made out of thin air. I'm surprised they have held on to the couple of remaining tenured reps. Any rep looking to make money, grow with a compnay, be valued, challenged or respected, need apply.
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When do you think they will become profitable?
 




Do you understand the word profit?? please do yourself a favor and research this word.

The real question is how many - what # - of Avance grafts have been sold from quarter to quarter?

Why has it been 9 years - again - there will be little patent life left for anyone who purchases this company.

Who would buy it? A company that doesn't currently sell conduits or wraps - So in other words a company with no nerve reconstruction experience.

How does that make sense? You tell me
 




anonymous said:
Do you understand the word profit?? please do yourself a favor and research this word.

The real question is how many - what # - of Avance grafts have been sold from quarter to quarter?

Why has it been 9 years - again - there will be little patent life left for anyone who purchases this company.

Who would buy it? A company that doesn't currently sell conduits or wraps - So in other words a company with no nerve reconstruction experience.

How does that make sense? You tell me
Click to expand...


Look, it doesn't take much intelligence to realize no device company wants any part of Axg. As long as KZ and the folks on top can solicit funds to keep the tugboat afloat and put money in their pockets, they will continue the downward path. Heck, it's working. If you are an investor you know full well it's not a good buy. If you are a rep currently employed at Axg then you know the reality and you know your two choices. Smart move would be stop wasting time complaining and simply move on.
 




anonymous said:
Look, it doesn't take much intelligence to realize no device company wants any part of Axg. As long as KZ and the folks on top can solicit funds to keep the tugboat afloat and put money in their pockets, they will continue the downward path. Heck, it's working. If you are an investor you know full well it's not a good buy. If you are a rep currently employed at Axg then you know the reality and you know your two choices. Smart move would be stop wasting time complaining and simply move on.
Click to expand...

Very well said - I am actually very impressed with management, they are the best sales people! Just keep the "investment" coming on and everything is great - just ask Engles! They wake up every morning and laugh at both the investors and the disposable reps.
 




















Mr. Leach will receive a base salary of $290,000 (to be reviewed on an annual basis), be eligible to participate in AxoGen's current bonus program and receive benefits afforded to other executive officers. He was granted incentive stock options for 160,000 shares of the Company's Common Stock on March 14, 2016, such options having a seven-year term, at an exercise price equal to $5.30 which was the fair market value of the Company's common stock based on the closing price of the Company common stock on the option grant date and pursuant to the terms of the Company's form of incentive stock options. Such options will vest as to 25% of the shares after one year and 12.5% every six months thereafter until fully vested.
 




anonymous said:
Mr. Leach will receive a base salary of $290,000 (to be reviewed on an annual basis), be eligible to participate in AxoGen's current bonus program and receive benefits afforded to other executive officers. He was granted incentive stock options for 160,000 shares of the Company's Common Stock on March 14, 2016, such options having a seven-year term, at an exercise price equal to $5.30 which was the fair market value of the Company's common stock based on the closing price of the Company common stock on the option grant date and pursuant to the terms of the Company's form of incentive stock options. Such options will vest as to 25% of the shares after one year and 12.5% every six months thereafter until fully vested.
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Who is Mr. Leach?
 




anonymous said:
Mr. Leach will receive a base salary of $290,000 (to be reviewed on an annual basis), be eligible to participate in AxoGen's current bonus program and receive benefits afforded to other executive officers. He was granted incentive stock options for 160,000 shares of the Company's Common Stock on March 14, 2016, such options having a seven-year term, at an exercise price equal to $5.30 which was the fair market value of the Company's common stock based on the closing price of the Company common stock on the option grant date and pursuant to the terms of the Company's form of incentive stock options. Such options will vest as to 25% of the shares after one year and 12.5% every six months thereafter until fully vested.
Click to expand...


Didn't know Mr. Leach was still alive. Ever since Lifestyles of the Rich and Famous went off the air, he's been low key.
 




Kevin Leach is the new chief marketing officer. Hey Kevin...best of luck marketing Lee Dellon's new nerve testing machine... lol. Axogen will pay/kiss butt to Dellon to keep his name involved with the company. This "device" will flop just like their absurd Axotouch motor nerve testing device.
 
















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