Evaluate, Reflect and Take Action!

All,

The Executive Team held our quarterly offsite meeting this past week and below are some of the highlights of what we discussed at this quarters meeting.

  • We reviewed the Diversity and Inclusion Committee progress and Leigh Ann has gotten many volunteers for this critical, relevant and timely new committee!  A further update will be provided at the All Hands meeting in a couple of weeks and thank you for all of those that have put their name in for consideration!
  • The progress toward our 2020 objectives by both Department and Company were reviewed.  The company has achieved a great deal this year and all is “Green” except for Revenue at this point.  We are falling short on revenue due to a slower pickup in Exogen than anticipated and the higher rebates from the United HA contract than anticipated.  We do expect to meet our EBITDA number and will look to conserve spending as we need to through the end of this year.  In the door Exogen orders have shown growth since June but not at the rate anticipated in June. ScoreCard Update November 2020
  • Key priorities for the sales team are driving Exogen growth, HA growth (leveraging our United contract) and International execution.  These are important levers that can make a great difference in our end of the year performance.  Please find attached our updated Scorecard for November.
  • We will provide a further update on annual revenue as we progress toward year end and it should be noted that the company has had strong growth performance over the past five months.  We have grown revenue per day each month (average daily sales) and we have achieved over $4M of pure growth over 2019 since June despite the ongoing pandemic!  Well done by all!
  • We reviewed the 2021 Annual Operating Plan (AOP) presented by Greg and Ben and the key assumptions and metrics that will drive our organic growth.  We are anticipating a return to slight growth with Exogen, continued growth in HA as well as our Surgical business. We will benefit from some of the shortfall in 2020 based on the pandemic headwinds which we anticipate will slowly dissipate in 2021 and will watch this closely as well.
  • Alessandra spent time reviewing the progress of the R&D goals for 2020 as well as the plans for 2021.  We will continue to take a risk based approach toward our R&D portfolio that balances near term opportunities with longer term opportunities.  The plans are exciting the execution this year has been fantastic!
  • Finally, we reviewed how we are tracking with our strategy of building toward double digit growth over the next 18 months.  There are many levers to this achievement that will include organic growth with Exogen, HA and Surgical, execution of our near term R&D Pipeline including the Bones Study, OsteoAmp Flow and Motys and tuck in acquisitions that will bring in new products that will grow at a faster growth rate than our current organic growth of 7% to 8% per year.

As was reviewed and discussed with the Bioventus Leadership Team last week our near term priorities through year end are the following.

  1. Revenue growth in Q4 over Q3 – we want to beat the 4% growth in Q3
  2. Expense control to ensure we hit our EBITDA goal
  3. Complete remaining Scorecard objectives including submission of BONES PMA supplement for Metatarsal to FDA
  4. Put the customer first in all we do!

A special thank you to the Texas team of Kim Morgal, Ryan Smith and Blake Foster for hosting me in Dallas this past week. Very Impressive Team!, Welcome Aboard Blake and Thank You for all of your great Execution Kim and Ryan!  I always learn a tremendous amount being with and talking with our customers and Kim ensured I met many!

Have a great week everyone and remember when you hit obstacles toward your goals – Evaluate, Reflect and then Take Action!

 

Best Regards,

Ken