Financial Data and Key Metrics Changes - Revenue increased by 27% for the quarter to $109 million, with 14% organic growth and a 13% contribution from Bioness [7][25] - Adjusted EBITDA totaled $21 million, compared to $23 million in the prior year, primarily due to higher operating costs [29] - Adjusted diluted earnings per share were $0.25, up from $0.24 a year ago [29] Business Line Data and Key Metrics Changes - Pain treatments grew by 24%, with 21 percentage points from organic growth and 3 percentage points from PNS products [25] - Bone graft substitutes saw 4% growth, impacted by COVID-related hospitalizations, but year-to-date growth was 35% compared to 2020 [26] - Restorative therapies delivered 52% growth, with 6 percentage points from Exogen and 46 percentage points from Bioness Advanced Rehabilitation [27] Market Data and Key Metrics Changes - International segment growth was 39%, with organic growth of 11% for the quarter [14] - DUROLANE revenue has more than doubled in the U.S. and nearly doubled globally compared to two years ago [25] - The company expects to trend closer to a normal environment by the end of the fourth quarter [26] Company Strategy and Development Direction - The company is focused on integrating Bioness and Misonix to enhance growth and market share [18][19] - The acquisition of Misonix is expected to create a high-growth medical device company with a $15 billion total addressable market [18] - The company aims to maintain double-digit organic growth while successfully integrating recent acquisitions [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by the pandemic and maintain growth [6][42] - The company anticipates gradual improvement in operating conditions and expects to achieve stronger performance in the fourth quarter [26] - Management highlighted the importance of their diversified portfolio and strong market access strategies in driving growth [42] Other Important Information - The company has placed a $50 million deposit for the potential acquisition of CartiHeal, which targets a $1.3 billion addressable market [20][21] - The integration of Bioness is progressing as planned, with breakeven profitability reached by the end of Q3 [15][19] - The company has a solid balance sheet with $81 million in cash and $177 million in debt outstanding at the end of the quarter [30] Q&A Session Summary Question: Trends in pain treatment and joint preservation - Management noted that the pandemic has created choppiness in elective procedures but access to physicians remained stable [36] Question: Cross-selling synergies from Bioness acquisition - Management expects increased sales synergies from the integration of Bioness, particularly in 2022 [38][39] Question: Confidence in normalization of business - Management attributed resilience to their dedicated team and diversified product offerings, which have allowed them to perform better than peers [42][44] Question: Misonix portfolio performance - Management indicated that Misonix has continued to grow despite headwinds, with a balanced portfolio across elective and wound treatment [46] Question: Long-term growth and margin profile - Management emphasized that both Bioness and Misonix are expected to drive consistent double-digit growth and maintain historical margin profiles [50] Question: International growth initiatives - Management highlighted plans to leverage their direct sales organizations to enhance international growth, which is currently below peers [52][53] Question: Feedback on DUROLANE's clinical data - Management reported positive feedback from clinicians regarding DUROLANE's high molecular weight and its potential to capture more market share [56]
Bioventus (BVS) - 2021 Q3 - Earnings Call Transcript