Push to the End!

All,

The end of 2020 is now in sight with less than four weeks to go in the calendar and fiscal year.  Our resilient Bioventus employees continue to Push to the End no matter what challenge is thrown in their way!

November was a tough month for the company as the business finished 11% below prior year or $3.2M below November 2019. While last November’s performance was an all-time high for Bioventus from an average daily sales (ADS) perspective our finish in November was still disappointing.  Most of the shortfall was related to timing of HA orders which caused reduced revenue in the month while the other areas of the business did have fairly consistent performance from a trend perspective despite the challenges with the ongoing pandemic.

Exogen, Orthobiologics (Surgical) and International all had ADS performance similar to October and Q3.  Exogen had a pandemic era high in terms of ADS so terrific job to the team (internal order management, reimbursement and sales) and this is what we need!  Keep in mind our goal is GROWTH in Q4 over Q3 and that goal is still very much in sight.  We also hope to get year over year growth in Q4 over Q4 of ’19 and while that goal is more challenging we are still in reach with a strong December performance.

The positive news after a difficult month like November is that the company can rebound and we see positive early signs that we will improve in December.  Bioventus has an advantage over many of our larger competitors in that we can adapt to the changing market conditions more quickly and ultimately provide better service to our customers and patients.  I have been very impressed with the resiliency of our sales and marketing teams and the ability to continue to adapt to the new situations that are put in front of them each day!

A special shout out to the Bioventus Lab Team of Carl Flannery, Scott Seaman and Kelly Buddin!  Our lab in downtown Durham is a world class facility and the work that Carl, Scott and Kelly do is critical particularly as we continue to develop our internal assays and understanding around Motys.  The lab is also a resource to our Orthobiologics business as well as new avenues of our R&D pipeline that are early in the development cycle.  Our lab facility is one that we will continue to leverage as we expand our products through R&D and M&A.  Attached is a picture of Carl and Kelly in the lab last week.

Have a great week as we continue to Push to the End in 2020!  Thank you for all you do!

Best Regards,

Ken