Attached is our updated Scorecard for 2020 including our updated H2 forecast numbers through August.  In the text below is a general update on where we stand with many of the key company objectives.  We ALL have a role in hitting our company objectives!  As a reminder, the H2 forecast numbers are also directly linked to our annual bonus plan based on the reset for the pandemic impact in H1.

All objectives are currently Green – a great color and great job to ALL;)!  Cohesiveness in our approach and focus as a company is essential to close the year strong.  It is everyone pushing in the same direction – we can do that!

  • Revenue – we are currently $.5M ahead of our H2 forecast number through August representing a solid growth of 8%.  Diving a little deeper into the numbers our great performance is being led by our HA products as well as our Orthobiologics (Surgical) business which are both at 25% growth quarter to date (QTD).  Exogen and International are at -24% and -13% QTD respectively.  From an ADS (average daily sales) perspective we have averaged $1.383M for the first two months and this jumps up to $1.520M in September as we close Q3.  The numbers are currently trending well for September and that will need to continue.  With an expected overall market tailwind in these remaining months we will also need improved contributions from all aspects of the business including Exogen and International rising to continue our positive trends in closing Q3 as well as achieve our goals in Q4.
  • EBITDA – a great story as we are $3.3M above our forecast through the first two months of the quarter representing over 37% growth over prior year.  Much of this is due to our spending being significantly lower due to less travel and the timing of other expenses.  Our gross margin is also a little better than plan based on our product mix.  We can’t save our way to growth so expect our spending will prudently increase as we continue to progress through the year and support our revenue climb.
  • Terrific work by the R&D team as all key projects are on track!  The IND (investigational new drug application) for our placental tissue product Motys will be submitted this month and the launch under the tissue regulations will be in Q4.  SignaFuse was cleared by FDA and launched in August and is already getting excellent traction.  Importantly, the PMA supplement for the metatarsal portion of the BONES trial will be submitted by year end.  The R&D team deserves a lot of credit for the excellent work and the dedication to hitting timelines that are not always easy to execute when they are planned so far in advance.
  • The public company readiness project has been successfully completed and we just had a third party review of our work which provided a strong endorsement of our preparation.  Great job Finance team!
  • The Exogen order to cash process is on target and this has been a significant amount of work and effort by the team.  Change is sometimes hard to lead but there is no doubt this is a needed change for our business that will pave the way for Exogen growth in the future!  Thank you for the efforts in supporting the team with these needed changes which impact many aspects of our business.

Special shout out to Peter Shaw, Anthony Doyle, Kent Gordon, Cathy Lo Re and Derek Hurdle for running an excellent forum for Canadian foot and ankle surgeons during a good part of the day on Saturday!  The feedback was excellent on our orthobiologics products especially OsteoAmp with many new ideas for future clinical work and the Bioventus team was extremely professional and well received by the physicians.  Great job, thank you for your preparation and thank you Cathy for planning this!  I know you have several more of these Saturday meetings coming up this month and appreciate the dedication to customer engagement and feedback!

Have a great week!

Ken