Core Viewpoint - Halper Sadeh LLC is investigating potential breaches of fiduciary duties by certain officers and directors of Bioventus Inc. which may affect shareholder rights [1] Group 1: Shareholder Rights and Legal Options - Long-term shareholders of Bioventus may seek corporate governance reforms, return of funds, court-approved financial incentives, or other benefits [2] - Shareholder involvement is crucial for improving company policies and practices, leading to enhanced shareholder value [3] Group 2: Firm's Background and Services - Halper Sadeh LLC represents global investors affected by securities fraud and corporate misconduct, having recovered millions for defrauded investors [4]

Summary of Key Points from J.P. Morgan MedTech Conference Call Industry Overview - The MedTech sector is experiencing earnings reports from various companies, including large-cap firms like BDX (Becton Dickinson) and ZBH (Zimmer Biomet), as well as several SMid-cap companies such as CVRX, INSP, and others [1][31]. Company-Specific Insights CVRX (CVRX) - CVRX has a strong track record, beating top-line expectations 87% of the time, but has seen an average stock reaction of down 2% post-report [2]. - Guidance for 2Q has been lowered to $55-58 million due to salesforce disruptions, with a forecast of $13.5 million in sales for 2Q, representing a 14% increase year-over-year [2]. Inspire Medical (INSP) - Inspire has beaten top-line expectations 86% of the time, with a positive stock reaction 75% of the time, averaging a +4.9% move [3]. - The focus is on the launch of Inspire 5, with expectations for a ramp-up in the second half of the year [3]. Bioventus (BVS) - Bioventus has beaten on sales 78% of the time, with expectations for an in-line to slightly better quarter, forecasting sales of $146 million [8]. - The company is cautious due to mixed orthopedic prints and lower correlation with large joint manufacturers [8]. Ceribell (CBLL) - Forecasting sales of $20.6 million for 2Q, representing a 35% increase, with gross margin expected at 85.5% [9]. - The company is viewed positively as a high-quality SMid-cap, despite the sector being out of favor [9]. Becton Dickinson (BDX) - BDX has beaten top-line expectations 67% of the time, with a significant concern among investors due to a lack of pre-announcement and potential fundamental weaknesses [12][14]. - The Street forecasts organic growth of +2.9% for the upcoming quarter, which is below previous expectations [14]. Enovis (ENOV) - Enovis has beaten on the bottom line 90% of the time, with expectations for a small beat-and-raise against the Street [18]. - The company is facing pressure from a short report and mixed orthopedic prints from competitors [18]. Insulet (PODD) - Insulet has a strong record, beating top-line expectations 93% of the time, with a forecast of $618.8 million in total revenue for 2Q, a 27% increase [22][23]. - The company is viewed as a top pick due to its competitive advantages in patch pump manufacturing [23]. Zimmer Biomet (ZBH) - Zimmer Biomet has beaten revenues 60% of the time, but investors are frustrated with inconsistent performance [29][30]. - The company is expected to deliver a clean quarter with a slight beat and guidance raise, but there are concerns about the high-end of its growth range [30]. Additional Insights - The overall sentiment in the MedTech sector is cautious, with many companies facing challenges such as salesforce disruptions, mixed orthopedic trends, and investor skepticism [6][14][18]. - There is a notable trend of fund flows out of healthcare and MedTech, impacting stock performance across the sector [23]. Conclusion - The MedTech sector is poised for a series of earnings reports, with varying expectations across companies. While some firms like Insulet and CVRX show strong potential, others like Becton Dickinson and Zimmer Biomet face significant investor scrutiny and challenges. The overall market sentiment remains cautious, reflecting broader economic uncertainties and sector-specific dynamics.

Industry Overview - The U.S. healthcare sector is facing challenges due to technological innovation, policy shifts, financial pressures, and changing consumer expectations [1] - The sector has underperformed compared to the S&P 500, growing only 2.5% in 2024 versus the benchmark's 23.3% increase [2] - Total U.S. healthcare spending has increased from $1.4 trillion in 2000 to $4.9 trillion in 2023, despite the healthcare sector's weighting in the S&P 500 dropping to a 25-year low of about 10% [3] Growth Drivers - An aging population and rising health issues like obesity and diabetes are contributing to sector growth [4] - Key areas such as telehealth, surgery, data analytics, and biotechnology are experiencing significant advancements [3] - The integration of AI in medical research is expected to drive long-term changes in the sector [5] Investment Opportunities - Stocks like Bioventus Inc. (BVS), Amicus Therapeutics, Inc. (FOLD), Rigel Pharmaceuticals, Inc. (RIGL), and The Ensign Group, Inc. (ENSG) are identified as having potential for growth [2] - Bioventus has an expected earnings growth rate of 34.7% for the current year, with a Zacks Consensus Estimate improvement of 43.5% [7] - Amicus Therapeutics shows an expected earnings growth rate of 116.7%, with a 20.9% improvement in earnings estimates [8] - Rigel Pharmaceuticals has an expected earnings growth rate of 20.2%, with a 13.3% improvement in earnings estimates [9] - Ensign Group has an expected earnings growth rate of 13.5%, with a 1.5% improvement in earnings estimates [10]

Group 1: Price Trend and Technical Analysis - Bioventus (BVS) has experienced a bearish price trend, losing 6.4% over the past week, but a hammer chart pattern suggests a potential trend reversal as bulls may have gained control [1] - The hammer pattern indicates a nearing bottom with likely subsiding selling pressure, supported by strong agreement among Wall Street analysts in raising earnings estimates for BVS [2][7] - The hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may have lost control and indicating a potential trend reversal [4][5] Group 2: Earnings Estimates and Analyst Consensus - There has been an upward trend in earnings estimate revisions for BVS, which is a bullish indicator as it typically leads to price appreciation [7] - The consensus EPS estimate for the current year has increased by 43.5% over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [8] - BVS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, suggesting it is likely to outperform the market [9]

Financial Data and Key Metrics Changes - Bioventus reported Q4 2024 revenue of $154 million, a 14% increase year-over-year, with adjusted EBITDA of over $28 million, reflecting a 28% increase compared to the prior year [31][36] - The company achieved adjusted gross margin of 74%, expanding 230 basis points compared to last year [35] - Adjusted net income more than doubled to $13 million, with adjusted earnings per share at $0.15 for the quarter, almost doubling compared to the prior year [36] Business Line Data and Key Metrics Changes - Surgical Solutions revenue accelerated by 18%, with Ultrasonics revenue advancing by more than 20% for the second consecutive quarter [31][32] - Pain Treatments revenue increased by 17%, driven by DUROLANE's strong brand recognition and clinical differentiation [32] - Restorative Therapies sales were flat compared to the prior year, with growth in Exogen offset by a decline in advanced rehabilitation due to divestiture [34] Market Data and Key Metrics Changes - The International segment grew 11% compared to the prior year, benefiting from delayed shipments in the Ultrasonics business [35] - The overall market for Bioventus's products is growing at low to mid-single digits, while the company expects to achieve above-market growth [21] Company Strategy and Development Direction - Bioventus aims to drive above-market revenue growth through diverse growth drivers and enhance profitability while accelerating cash flow [9][20] - The company completed a comprehensive review of its markets and established a framework for sustained and profitable growth, focusing on organic and inorganic opportunities [11] - Key areas of focus include strategic marketing, commercial effectiveness, and medical education to raise awareness about the benefits of ultrasonic surgery [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to build on positive momentum in 2025, with expectations for continued revenue growth and improved profitability [9][20] - The company plans to maintain high gross margins while focusing on supply chain improvements and aims for 100 basis points of incremental adjusted EBITDA margin improvement in 2025 [27] - Management highlighted the importance of maintaining focus on core business areas and executing growth strategies effectively [39] Other Important Information - The company paid down nearly $50 million in debt in Q4 2024, reducing its net leverage ratio to slightly above 3 turns [19] - For 2025, Bioventus expects net sales in the range of $560 million to $570 million, with adjusted EBITDA between $112 million and $116 million [40][41] Q&A Session Summary Question: Guidance assumptions by segment in 2025 - Management confirmed expectations of mid- to high single digits in pain treatments, low double digits in surgical, and low single digits in restorative therapies [48] Question: Impact of market shifts on HA and DUROLANE performance - Management indicated confidence in HA business growth driven by volume, with stable pricing expected [52] Question: Capital allocation priorities and debt reduction - Management emphasized the importance of reducing debt for financial flexibility while remaining focused on executing business goals [56][58] Question: Trends in bone graft substitutes and growth confidence - Management expressed optimism about the bone graft substitutes business, expecting it to return to double-digit growth in the second half of 2025 [62] Question: Growth expectations for Exogen - Management highlighted the turnaround in Exogen, expecting growth in the low to mid-single digits for 2025 [68] Question: International expansion plans - Management plans targeted geographic expansion internationally, emphasizing the need for high ROI investments [80] Question: Timeline for expanding Ultrasonic technology into general and neurosurgery - Management indicated that while the focus remains on spine surgery, there are plans to penetrate general and neurosurgery segments in the coming years [84]

Core Insights - Bioventus Inc. reported strong financial results for Q4 and full-year 2024, indicating a transformational year for the company with expectations for continued growth in 2025 [2][3][6] Financial Performance - Q4 2024 worldwide revenue reached $153.6 million, a 13.5% increase year-over-year, driven by growth in Pain Treatments and Surgical Solutions [3][10] - Full-year 2024 revenue totaled $573.3 million, an 11.9% increase compared to 2023, with organic growth of 14.4% [6][12] - Adjusted EBITDA for Q4 2024 was $28.3 million, up 28.3% from $22.0 million in the previous year, attributed to revenue growth and margin expansion [4][10] - The company reported a net loss from continuing operations of $0.3 million in Q4 2024, significantly improved from a loss of $7.7 million in Q4 2023 [4][5] Revenue Breakdown - In Q4 2024, U.S. Pain Treatments generated $62.8 million, an 18.7% increase, while Surgical Solutions saw a 16.8% increase to $46.4 million [9] - For the full year, U.S. Pain Treatments revenue was $234.9 million, up 18.7%, and Surgical Solutions revenue was $167.7 million, an 18.2% increase [12] Strategic Initiatives - The company divested its Advanced Rehabilitation Business in Q4 2024, receiving $24.7 million in proceeds, which is expected to enhance focus on core growth areas [14] - Bioventus aims to achieve net sales of $560 million to $570 million in 2025, reflecting organic growth of approximately 6.1% to 8.0% [13][22] Operational Highlights - The company achieved five consecutive quarters of double-digit revenue growth in Pain Treatments and Surgical Solutions [14] - Cash from operations in Q4 2024 was $19.3 million, an increase of 86.3% compared to the previous year [10][28]