All,

This press release was issued this morning announcing our continued investment in CartiHeal and the Agili-C implant.

This is an important and exciting announcement that represents a strong medium term growth opportunity for Bioventus.

Here are some further details and facts.

  • The Agili-C implant, a coral based cylindrical patented implant, was shown to be superior to surgical standard of care (microfacture and debridement) in patients with mild to moderate knee pain during its pivotal clinical trial conducted over the past several years.  Bioventus has exercised its right to purchase CartiHeal if the Agili-C device is approved by the FDA (the timing of which is to be determined).  The clinical module of the pre-market approval application (PMA) is going to be submitted to FDA later this year.
  • The Agili-C will potentially be available for launch in 2023 but will require some additional publications to receive full reimbursement coding and eventual private payer coverage.  The Agili-C is a medium term growth driver that will positively impact our business in the next 4 to 5 years.
  • The Agili-C implant fits very well with our strategy of growth by going deeper with our customers and in this case fits nicely within our Pain Treatments Vertical (see this slide) where we also sell our HA products.  Agili-C also fits very well with our Purpose of returning patients to Active Lives and is a true “Innovation for Active Healing!”  In this case the Agili-C has the potential to avoid more morbid procedures such as Total Knee Replacement.
  • This acquisition would not have been possible without the acquisition of Bioness and the pending acquisition of Misonix which has given the company significant near term growth levers making the CartiHeal investment a better balance for our company since the Agili-C represents a medium term commercialization effort over the coming years.
  • Special Thanks to Sarah Caley, Tim Donovan, Vivek Munshi, Steven Moore, Ryan Kerr, Anthony Doyle, Catherine Lo Re  and Chris Teague for their work over the past three months doing diligence on this opportunity and putting together a pathway toward commercialization in the years ahead!

I hope you have a great week and important week closing the month of August!

Best Regards,

Ken