All,

During the 2022 Kickoff meeting a little over a week ago we released the 2022 Scorecard.  This is a significant list of objectives for the company that are resourced and we are focused on achieving.  Please find our Scorecard here for your edification.

There are also metrics behind the objectives that are not on this list that we will be focusing on.  These are metrics based on learning from the past (a critical part of our culture) and leaning into our 2022 goals as an organization.

Importantly, with some of these critical metrics we have brought greater focus and leadership through organizational changes we have made to unlock the full potential of Bioventus!  This includes new leadership in Regulatory/Quality and Operations as well as elevating positions such as our Chief Medical Officer to provide broader oversight on our organization.  At the same time we have organized our sales team in such a way to bring maximum focus to the customer which is critical to our execution and further market penetration.

Here are 10 metrics behind the objectives we will be watching closely in 2022 and measuring our progress each month.  Please note these are not stack ranked.

  1. Surgical Vertical Synergy – While the pilot of selling our Bone Graft Substitutes and Bone Scalpel together has just kicked off we will be watching this metric closely particularly spinal decompression  and fusion cases where both products are used together.  This is a significant growth opportunity for the company and we are underpenetrated in both markets at about 5% of today’s market.
  2. TheraSkin Reimbursement – With the recent publication of new data on TheraSkin we will be looking for new payer coverage this year that can further unlock TheraSkin growth in our wound business.
  3. L360 Go in Ortho – This is still a pilot it is off to a good start and we will be watching the growth closely as the program expands.
  4. Exogen Order Fulfillment Timing and Conversion Rate – In 2021 this was a disappointment and we now have the team in place to provide the type of service our customers (physicians and patients) expect.  We will be measuring our results monthly.
  5. Gross Margin – Our AOP goal is 76.2% and this is a blended margin with all products.  Learning from 2021, we were impacted by the negative cost of quality as we dealt with a recall on Exogen gel, higher than anticipated cost of goods and higher shipping costs.  In 2022 we are bringing a resilient focus to the quality of all of our products, new resources to supply chain and passing on the shipping costs to our customer in cases where it is industry standard.
  6. HA – Focus will continue to be on the number of non-contracted product we sell – critical to our success in this market as well as overall market share growth in Durolane and Gelsyn.
  7. PNS – We are adding more sales people and will be watching growth and supply chain equally.
  8. International – For the first time in the history of Bioventus we have more products to sell then just Exogen and Durolane in our OUS markets.  Growth rates greater than the total company growth is what we are watching for and leverage of our international infrastructure.
  9. Vector Units – Another great opportunity in our advanced rehab business and will be looking at some strategic initiatives on how we can become the dominant market leader in 2022 as well as developing a longer term supply chain plan.
  10. Public Company Costs – In 2021 we bore additional expenses due to being a public company.  This includes legal and insurance.  We will be making moves this year to reduce our expenses in this area without sacrificing quality.

There you have it, a list critical to our success.  We are fully capable of moving the needle significantly on all of these!  What will it take?  All of us working together which is the Caring part of our culture.  Learning from the past and growing each day will allow us to achieve amazing Results in 2022!

Regards,

Ken