All,
Strategically, Bioventus is making significant investments for short, mid and long term growth in Commercialization, R&D and Operations. This is a delicate balance that we review consistently to make sure we are making investments that will accentuate our opportunity for sustained double digit growth today and over the coming years.
Over the past week I have visited three areas that are key levers for our mid and long term growth. This includes; 1) International Growth, 2) CartiHeal Market Development and Growth and 3) Market Expansion of Peripheral Nerve Stimulation (PNS) and the L360 Gait Restoration Device into the Orthopedic Market. In some ways these are all interrelated but they are also going to take divergent thinking as well as consistent Learning and focus.
International Growth – Today, our international business represents approximately 10% of our total company revenue, which is small for a medical device company our size. Over the coming four years we see this percentage expanding to approximately 20% of our revenue. Led by Anthony Doyle, our General Manager for our newly created International Business Unit, Bioventus has a solid foundation to build from where we expect growth of at least 20%/year in the coming years driven by a significantly expanded number of products penetrating new markets. Our international segment has gone from selling 2 products historically to having four new business platforms! The key to success will be predicated on focusing on the right products in the right markets. Attached please find a picture of Anthony (Ant) in action as he addresses his team at the International Annual Sales Meeting this past week in Athens, which was a great success!
CartiHeal Market Development and Growth– Over the course of the coming two quarters we will be launching CartiHeal in both the US and Europe as we commence initial commercial cases. This is a game changing technology and after having witnessed two CartiHeal surgeries this week in Milan, Italy and visiting the operations headquarters in Tel Aviv, Israel, I am more encouraged then ever! We have a dedicated CartiHeal team that has taken the product to where it is today. This technology has the capability of delaying or eliminating the need for total knee replacement, a significant market. Patient selection and surgical technique are the most critical aspects needed to ensure success. CartiHeal is a great fit with our HA Pain Treatment sales team who calls on the surgeon specialties that will benefit from using CartiHeal in their clinical practice. It is also an expansion of the osteoarthritis clinical pathway we are currently in with HA. Going deeper with our customers is a key part of our growth strategy and CartiHeal allows us to do that! Please see attached pictures of the CartiHeal surgeries along with the manufacturing process of the CartiHeal coral.
Market Expansion of PNS and L360 – PNS is a large market opportunity for Bioventus as we build on Stimrouter and complete the development of Talismann, both of which are technology leading products. We now have a focused sales team and sales management in the US around PNS and our expectations have never been higher for success! We also see a significant opportunity for expansion of the L360 gait restoration product into orthopedics. This innovative device is capable of restoring a patient to normal walking post an orthopedics or neurological health issue. Our core manufacturing area for both of these products is in Tel Aviv, Israel where we have a dedicated team working to expand our output in this area. This year we expect the production yield of our Israel manufacturing to set records! Under the management of Dror Harel in Israel, Jasmin Nuhic in Memphis and our head of Operations, Miguel Beltran-Delgado, our operations leadership has never been stronger. Manufacturing will become a competency for Bioventus that will drive significant value, cost of goods reduction and better control of quality in the years to come!
Bioventus is fortunate to be able to make the required investments to sustain our double digit growth for many years to come. This will require our continued focus and consistent Learning to expand on what we are doing today!
I hope you have a terrific week!
Best Regards,
Ken Reali