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Bioventus reported 1Q22 orthopedic sales of $108.3 million, +32.4% compared to 1Q21. The company grew +9% organically for the same period.
Despite the strong quarter, perhaps the most notable news is Bioventus’ cancellation of its initial funding plan to acquire CartiHeal. The company plans to evaluate the feasibility of alternate financing options, but won’t jeopardize its other strategic goals to do so.
Bioventus CEO Ken Reali said, “We believe in the Bioventus business, and our ability to drive double-digit growth, with or without CartiHeal. Obviously, it’s a very compelling technology; we think it’s a game-changer. But it’s not a finance-at-all-cost situation.”
Further M&A activity is paused at the company until it achieves a net debt to adjusted EBITDA ratio of 3x to 4x, which Bioventus expects to achieve toward the end of 2023.
COVID headwinds lessened during the course of the first quarter, but the healthcare staffing shortage continues to cause problems. According to a report cited by Bioventus, there are currently 400,000 fewer healthcare workers compared to before the pandemic.
The company reaffirmed its previous 2022 guidance of $545 million to $565 million, with the midpoint reflecting double-digit growth.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis. Other includes tools for bone healing, a bone scalpel, etc.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $82.9 | $60.0 | $23.0 | 38.3% |
| Other | $25.4 | $21.8 | $3.5 | 16.2% |
| Total | $108.3 | $81.8 | $26.5 | 32.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $96.1 | $74.5 | $21.6 | 28.9% |
| OUS | $12.2 | $7.2 | $5.0 | 68.4% |
| Total | $108.3 | $81.8 | $26.5 | 32.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $117.3 | |
| Cost of Sales | $41.6 | 35.5% |
| Selling and Admin | $86.1 | 73.4% |
| R&D | $6.9 | 5.9% |
| Other | ($6.1) | (5.2%) |
| Net Earnings | ($11.3) | (9.6%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
Bioventus reported 1Q22 orthopedic sales of $108.3 million, +32.4% compared to 1Q21. The company grew +9% organically for the same period.
Despite the strong quarter, perhaps the most notable news is Bioventus' cancellation of its initial funding plan to acquire CartiHeal. The company plans to evaluate the feasibility of alternate financing...
Bioventus reported 1Q22 orthopedic sales of $108.3 million, +32.4% compared to 1Q21. The company grew +9% organically for the same period.
Despite the strong quarter, perhaps the most notable news is Bioventus’ cancellation of its initial funding plan to acquire CartiHeal. The company plans to evaluate the feasibility of alternate financing options, but won’t jeopardize its other strategic goals to do so.
Bioventus CEO Ken Reali said, “We believe in the Bioventus business, and our ability to drive double-digit growth, with or without CartiHeal. Obviously, it’s a very compelling technology; we think it’s a game-changer. But it’s not a finance-at-all-cost situation.”
Further M&A activity is paused at the company until it achieves a net debt to adjusted EBITDA ratio of 3x to 4x, which Bioventus expects to achieve toward the end of 2023.
COVID headwinds lessened during the course of the first quarter, but the healthcare staffing shortage continues to cause problems. According to a report cited by Bioventus, there are currently 400,000 fewer healthcare workers compared to before the pandemic.
The company reaffirmed its previous 2022 guidance of $545 million to $565 million, with the midpoint reflecting double-digit growth.
Orthopedic Sales Data
All orthopedic sales data is provided in USD millions unless otherwise noted. Orthopedic sales and growth rates are estimated on an as-reported basis. Other includes tools for bone healing, a bone scalpel, etc.
Orthopedic Sales by Segment
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| Orthobiologics | $82.9 | $60.0 | $23.0 | 38.3% |
| Other | $25.4 | $21.8 | $3.5 | 16.2% |
| Total | $108.3 | $81.8 | $26.5 | 32.4% |
Orthopedic Sales by Geography
| 1Q22 | 1Q21 | $ Chg | % Chg | |
|---|---|---|---|---|
| US | $96.1 | $74.5 | $21.6 | 28.9% |
| OUS | $12.2 | $7.2 | $5.0 | 68.4% |
| Total | $108.3 | $81.8 | $26.5 | 32.4% |
Company Earnings
| Amt | % of Sales | |
|---|---|---|
| Sales | $117.3 | |
| Cost of Sales | $41.6 | 35.5% |
| Selling and Admin | $86.1 | 73.4% |
| R&D | $6.9 | 5.9% |
| Other | ($6.1) | (5.2%) |
| Net Earnings | ($11.3) | (9.6%) |
Mike Evers is ORTHOWORLD’s Digital Content Strategist. He can be reached by email.
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ME
Mike Evers is a Senior Market Analyst and writer with over 15 years of experience in the medical industry, spanning cardiac rhythm management, ER coding and billing, and orthopedics. He joined ORTHOWORLD in 2018, where he provides market analysis and editorial coverage.
