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."