Exagen secures $75 million credit facility with Perceptive Advisors

CARLSBAD, Calif. - Exagen Inc. (NASDAQ:XGN), a $111 million market cap company specializing in autoimmune testing solutions, has finalized a term loan credit agreement with Perceptive Advisors LLC, obtaining up to $75 million in financing. The company’s stock has shown remarkable strength, posting a 340% return over the past year and currently trading near its 52-week high of $6.23. This strategic move, announced today, aims to retire the firm’s existing debt and bolster its financial position.According to InvestingPro data, Exagen operates with a moderate level of debt and maintains strong liquidity, with current assets exceeding short-term obligations by 2.7x.

The initial $25 million tranche was received at the closing and was utilized to pay off Exagen’s previous term debt with Innovatus Capital Partners. With revenue growth of 5.9% in the last twelve months and analysts forecasting 16% growth next fiscal year, the agreement includes provisions for additional tranches, contingent upon Exagen meeting specific revenue milestones. A second tranche of $10 million is accessible through March 31, 2026, and a third tranche of $10 million through December 31, 2026. Moreover, a business development tranche of $30 million is available through March 31, 2027, at Perceptive’s discretion for the company’s business development efforts.

John Aballi, President and CEO of Exagen, expressed satisfaction with the new facility, highlighting the extended amortization timeline and the potential for future growth initiatives through access to capital that is minimally dilutive. Sam Chawla of Perceptive Advisors also commented on the partnership, emphasizing Exagen’s role in advancing personalized medicine for autoimmune diseases.

The loan, secured by nearly all of Exagen’s assets, carries an interest rate of Term SOFR + 7%, with a 4.75% SOFR floor. Exagen is set to make interest-only payments for 60 months, with the total interest and principal due at maturity.

As part of the initial transaction, Exagen issued warrants to Perceptive for the purchase of 400,000 shares of its common stock. Additional warrants up to 750,000 shares may be issued with the closure of subsequent tranches.

Exagen, known for its AVISE® CTD test that aids in diagnosing autoimmune conditions, has committed to providing clarity for such diseases and improving clinical outcomes. The company’s laboratory specializes in rheumatic disease testing, ensuring precise and timely results.

Details of the financing will be disclosed in a Form 8-K filing with the Securities and Exchange Commission within four business days of the credit agreement’s closure.

This financial maneuver is designed to enhance Exagen’s leadership position in autoimmune diagnostics and support the company’s mission to improve patient care in the field of rheumatology and other healthcare practices. The information is based on a press release statement.

In other recent news, Exagen Inc. reported its fourth-quarter 2024 earnings, revealing a 6% increase in annual revenue, reaching $55.6 million. The company achieved a notable improvement in its gross margin, which rose to nearly 60%. Exagen launched new biomarkers for its Advise CTD test, which are expected to enhance diagnostic sensitivity and potentially add approximately $90 per test in incremental revenue. Analyst Mark Massaro from BTIG maintained a Buy rating on Exagen stock, highlighting the company’s ambition to achieve Adjusted EBITDA positivity by the fourth quarter of 2025. The analyst praised the company’s leadership for expanding gross margins and reducing operational expenses, contributing to positive cash flow. Exagen’s strategic initiatives, including product launches and biomarker development, are aimed at enhancing financial metrics and market presence. The company plans to expand its sales territories and anticipates high single-digit volume growth, targeting mid-60% gross margins. These recent developments reflect Exagen’s focus on achieving its financial goals for the upcoming year.

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