All,

Over the past six months a broad team at Bioventus has been engaged in the development of a Full Potential Plan or FPP that will allow us to maximize our potential as a business, achieve significant growth and fulfill our mission of helping many more patients return to Active and Healthy Lives!

This has included multiple meetings (too many to count for some), working with McKinsey Consulting on data crunching to ensure accuracy of numbers and proper benchmarking and aligning as a team on a prioritized set of initiatives.

At this link is a relatively high level summary slide deck that runs through the seven initiatives that we will be focusing on over the course of the next couple of years.

The total impact of all seven initiatives by 2024 is $343M in revenue and over $170M in EBITDA. This does include a baseline assumption on M&A impact but as you will see investing in our current business today pays great dividends and is the surest way to make a meaningful impact.  All told we can nearly double our business over the course of the next four to five years as we execute toward this plan and strategy.

Here are some key points;

  • These initiatives were selected from a slate of over 15 different identified opportunities across the business
  • The key areas where the FPP initiatives are focused on are; M&A, Commercial, Operations and Support Services
  • While other initiatives are important these were all found to be the most impactful proactive initiatives we can focus on now
  • These set of FPP initiatives do not impact are current Company Scorecard but are designed to be complementary to those objectives
  • Focus is the key and the FPP coupled with our Company Scorecard will be the priorities in the business
  • We will begin to track our progress on a monthly and quarterly basis
  • Beyond the attached slides are a significant amount of detail (Gant charts etc.) that will drive these plans
  • There is some new terminology in these documents such as “Omnichannel” or “Implantables” (which is our PNS business Stimrouter and Talismann)

Most importantly, we will continue to evolve our inclusive culture to meet the strategy we are driving to. We had an excellent executive team offsite this past week and spent nearly a whole day on our companywide culture and the results of our recently completed culture survey. We will have more discussion on this in the next several weeks as we begin to articulate this very important aspect of our organization.

Regards,

Ken