Case studiesBiologics and wound care
Axolotl Biologix
How a ten-person biologics company with a great product and no focused strategy grew revenue fortyfold and merged with a Nasdaq-listed company.
$1M → $40M+revenue, 2021 to 2023
Zero findingson first FDA inspection
$140Mpotential merger value, Carmell (Nasdaq: CTCX)
The challenge
Products for diabetic foot ulcers and venous leg ulcers live or die on Medicare reimbursement, which demands evidence of clinical effectiveness and cost efficiency. The market is crowded with established players, so new products need strong clinical evidence and sharp positioning.
Axolotl, an Arizona biotech producing human biologics, had the science and the patient outcomes. It needed to grow faster and target the right customers.
Every company has its own characteristics. This is an example of how we did it, not a template. There are no copy-and-paste solutions.
How it unfolded
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01 · 2018
A great product, no focused strategy
OSP began consulting with Axolotl in 2018. The quality of the product, the science and the patient outcomes were clear. What was missing was a plan to grow faster and reach the clinicians who treat these conditions.
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02
The first acquisition
The board had burned through significant cash and was behind on revenue. We saw an opportunity for a private equity firm or family office to own the entire company.
- Identify the right investor
- Rework the existing cap table
- Build a turnaround strategy
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03
Close and implement
We became experts in where the FDA and CMS were heading. Two OSP executives joined the board and one served as CEO, earning the owner’s trust in both the strategy and the team’s ability to execute.
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04
Organize the operations
We let the company focus on what it did best: great products and owning the sales channel. Partner company OrthoEx took on operations, alongside contract manufacturers and regulatory and quality support. Inventory management was upgraded, headquarters moved to Scottsdale, and forecasting got real intelligence.
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05
Focus on selling
- Direct sales
- Out of budget for a ten-person company.
- Independent agents
- Too much to manage with a single sales leader.
- Distributor partner
- A few customers, with a large footprint and an existing sales organization.
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06
FDA inspection
We took a conservative approach to a shifting regulatory landscape. While competitors received warning letters, Axolotl completed its first FDA inspection with no findings.
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07 · 2021–2023
Three years of results
- Sales growth
- Revenue from $1M to over $40M.
- Reimbursement strategy
- An economic advantage that drove growth.
- Clinical documentation
- Five peer-reviewed clinical white papers.
- Hospital launch
- A large-scale GPO contract negotiated.
- Clinical trial
- CRO upgraded to raise the probability of success.
- Liquidity event
- A window opened; we pursued M&A partners.
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08 · 2023
Merger complete
A meeting at the Canaccord Genuity conference ahead of AAOS 2023 produced several leads. The process closed with a merger between Axolotl Biologix and Carmell Corporation (Nasdaq: CTCX), at a total potential value of $140M in cash and stock.