Axogen, Inc. (NASDAQ: AXGN) has made a strategic investment in Trace Biosciences, Inc., a clinical-stage biotechnology company developing nerve-targeted imaging agents, according to a press release from Trace Biosciences.

The investment is part of Trace Biosciences' Series A financing round, with additional investors expected to participate. Proceeds will support Phase II and III clinical trials of Nerve Trace Dx, the company's lead candidate, with the goal of submitting a New Drug Application (NDA) to the FDA.

Nerve Trace Dx is a near-infrared fluorescence imaging technology designed to provide real-time visualization of nerves during surgery, including nerves obscured by surrounding tissue. The technology is intended for two applications: helping surgeons identify and avoid nerves during a range of surgical procedures, and assisting in localizing and assessing injured nerves to support surgical repair.

The FDA cleared Nerve Trace Dx's Investigational New Drug (IND) application in December 2025, and a Phase I clinical trial evaluating its safety and feasibility in surgical patients is currently underway.

"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.

Michael Dale, President and CEO of Axogen, stated the investment aligns with the company's mission. "Improving nerve care starts with being able to see the nerve," he said. "Giving surgeons the ability to see nerves in real time, whether to protect them or to treat them, is foundational to that mission."