Exagen delivered a Q1 beat on the back of 10% volume growth - we reiterate our Buy rating and trim our PT from $9 to $8 on shares of XGN

Research evidence excerpt

Exagen delivered a Q1 beat on the back of 10% volume growth - we reiterate our Buy rating and trim our PT from $9 to $8 on shares of XGN

LIFE Investment Thesis Exagen is a proprietary test provider offering novel tests into one targeted physician channel, rheumatologists, who are typically

internists who specialize in the diagnosis and treatment of autoimmune diseases. Exagen focuses on a targeted population of

rheumatologists (only 4-5k in the US) with its own sales force and offers diagnostic tests that are considered superior to today's

"standard of care" and seeks to dominate a large market with significant unmet need and hardly any real competition. Exagen offers

a suite of multi-marker blood tests aiding in the diagnosis, prognosis, and recurrence monitoring of a wide range of autoimmuneSCIENCE diseases, including lupus (which can cause potentially fatal damage to the kidney, heart, lung or brain), rheumatoid arthritis,

autoimmune thyroid (Graves' and Hashimoto's disease), Sjogren's syndrome, and scleroderma for as many as 23M Americans and

a total US addressable market of ~$5 billion. Over time, we expect Exagen to develop a test for therapeutic response of diseaseAND

activity in lupus nephritis and possibly expand to other test use cases in autoimmune disease diagnostics. Exagen's strategy is to

become a value-added strategic partner to rheumatologists for the diagnosis, monitoring and treatment of a range of autoimmune

diseases. We reiterate our Buy rating on shares of Exagen.

Upcoming Catalysts Price Performance

■ XGN looks to continue driving solid growth of its core AVISE CTD panels to the $14DIAGNOSTIC rheumatologist market. $12

■ We look for XGN to advance its work on a test for myositis, and it plans a launch

in early 2027. $10