Exagen Inc. Reports 5.9% Revenue Growth to $55.6 Million for Fiscal Year 2024

Exagen Inc., a medical technology company specializing in innovative testing products for autoimmune diseases, reported a revenue increase of 5.9% for the fiscal year ending December 31, 2024, totaling $55.6 million compared to $52.5 million in 2023. This growth was primarily driven by an increase in the average selling price (ASP) of its flagship product, AVISE® CTD, which accounted for 91% of total revenue. However, the number of AVISE® CTD tests delivered decreased to 122,883 from 137,650 in the previous year, reflecting the impact of revenue cycle management initiatives and a reduction in sales territories initiated in 2022.

The company achieved significant operational improvements, including a gross margin increase of 3,656,000, or 12.4%, resulting in a gross margin percentage of 59.5% for 2024, up from 56.1% in 2023. Exagen also reported a substantial reduction in operating expenses, which fell by 10.6% to $46.7 million, primarily due to decreased selling, general, and administrative expenses. The net loss for the year was $15.1 million, a notable improvement from the $23.7 million loss reported in 2023, indicating a nearly 36% reduction in losses.

Strategically, Exagen has focused on enhancing its product offerings, including the recent conditional approval and commercial launch of new biomarker assays for systemic lupus erythematosus (SLE) and rheumatoid arthritis (RA) on the AVISE® CTD platform. The company anticipates that these new biomarkers will enhance clinical utility, improve ASP, and drive demand, positioning Exagen for profitability in the near term. The company has also revitalized its leadership team, which includes key appointments in executive roles, to support its operational turnaround and growth strategy.

Operationally, Exagen has seen a slight decrease in the number of healthcare providers ordering its tests, with 2,370 providers reported in the fourth quarter of 2024, down from 2,383 in the same period of 2023. The company continues to leverage its specialized sales force, which covers 40 territories across the United States, to promote its testing products primarily to rheumatologists. As of December 31, 2024, Exagen employed 209 individuals, reflecting its commitment to maintaining a skilled workforce to support its growth initiatives.

Looking ahead, Exagen aims to sustain its revenue growth and achieve positive Adjusted EBITDA by expanding the adoption of its AVISE® CTD product and developing additional innovative testing solutions. The company is also focused on enhancing its reimbursement strategies and optimizing its revenue cycle management to improve cash flow and operational efficiency. Despite the challenges posed by market conditions and competition, Exagen believes it is well-positioned to capitalize on the growing demand for accurate and timely diagnostic solutions in the autoimmune disease space.