Trace Biosciences Announces Strategic Investment from Axogen to Advance Clinical Development of its Nerve Trace Nerve-Specific Imaging Technology

PORTLAND, Ore., July 29, 2026 /PRNewswire/ -- Trace Biosciences, Inc., a clinical-stage biotechnology company developing nerve-targeted imaging agents, today announced it has received a strategic investment from Axogen, Inc. (NASDAQ: AXGN), the global leader in surgical solutions for restoration of peripheral nerve function, as its technology continues to advance through clinical development. The investment is part of Trace's Series A financing round with additional investors expected to join.

Nerve Trace is a near-infrared fluorescence imaging technology designed to provide direct, real-time visualization of nerves during surgery, including nerves that are otherwise obscured from view by surrounding tissue. The technology enables two clinically significant applications. First, by rendering nerves visible in real time, it allows surgeons to identify and avoid nerves that would otherwise be obscured from view during a broad range of surgical procedures. Second, in cases where a nerve has already been injured, it allows surgeons to localize and assess the nerve with greater precision, supporting more effective surgical repair. Trace's lead candidate, Nerve Trace Dx, received FDA clearance of its Investigational New Drug (IND) application in December 2025 and has began its Phase I clinical trial evaluating Nerve Trace's safety and feasibility in surgical patients. Proceeds from the investment will support Trace's Phase II and III clinical trials toward a New Drug Application (NDA).

"We're pleased to welcome Axogen, a company that shares our commitment to protecting nerve function, as a strategic partner in this next phase of our growth. This investment strengthens our ability to advance Nerve Trace through the clinical work ahead, giving surgeons visibility into nerves they've not been able to see before," said Connor Barth, Ph.D., Co-Founder and CEO of Trace Biosciences.

"Improving nerve care starts with being able to see the nerve. You can't treat what you can't see," said Michael Dale, President and CEO of Axogen, Inc. "This investment in Trace's technology is directly aligned with our mission of making restoration of peripheral nerve function an expected standard of care. Giving surgeons the ability to see nerves in real time, whether to protect them or to treat them, is foundational to that mission."

About Trace Biosciences

Trace Biosciences is a clinical-stage biotechnology company pioneering nerve-targeted imaging technologies for surgery. Founded by leaders in imaging, chemistry, and translational medicine, Trace is developing a new class of small-molecule imaging agents designed to make nerves visible and measurable in clinical settings. The company's mission is to make safe, precise surgery a reality by making nerves visible in every operating room.

For more information, visit www.trace-bio.com 

About Axogen, Inc

Axogen (AXGN) is the leading company focused specifically on the science, development and commercialization of technologies for peripheral nerve regeneration and repair. Axogen employees are passionate about providing the opportunity to restore nerve function and quality of life for patients with peripheral nerve injuries by providing innovative, clinically proven and economically effective repair solutions for surgeons and healthcare providers. Peripheral nerves provide the pathways for both motor and sensory signals throughout the body. Every day people suffer traumatic injuries or undergo surgical procedures that impact the function of their peripheral nerves. Physical damage to a peripheral nerve or the inability to properly reconnect peripheral nerves can result in the loss of muscle or organ function, the loss of sensory feeling, or the initiation of pain. Axogen's product portfolio includes Avance® (acellular nerve allograft-arwx), Avance® Nerve Graft, Axoguard Nerve Connector®, Axoguard Nerve Protector®, Axoguard HA+ Nerve Protector™, Axoguard Nerve Cap®, and Avive+ Soft Tissue Matrix™.

For more information, visit www.axogeninc.com 

Forward-Looking Statements

This press release contains forward-looking statements, including statements regarding the terms and expected timing of the financing, the use of proceeds, the progress of clinical trials, and the anticipated benefits of the collaboration between Trace Biosciences and Axogen. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Trace Biosciences undertakes no obligation to update these statements except as required by law.

Media Contact: [email protected] 

SOURCE Trace Biosciences