Bioventus (BVS) 44th Annual J.P. Morgan Healthcare Conference summary

Company transformation and strategic focus

• Underwent significant transformation, improving prioritization, execution, and reducing leverage.

• Achieved revenue growth above market, peer-leading gross margins in the mid-70s%, and expanded EBITDA margins by 700 basis points.

• Generated over $100 million in operating cash flow in the last two years, setting a strong foundation for future growth.

• Aims to become a leading med tech company exceeding $1 billion in size, with durable growth and high margins.

• Divested non-core assets to sharpen commercial execution and reduce debt.

Growth drivers and innovation

• Four main growth drivers: ultrasonics, international, peripheral nerve stimulation (PNS), and platelet-rich plasma (PRP).

• PNS platform recently received FDA clearance and is entering full launch, offering unique technology advantages.

• PRP business leverages existing salesforce, offers single-spin convenience, and enables customizable treatments.

• Ultrasonics is the fastest-growing segment, with technology aimed at becoming the standard of care in spinal surgery.

• International expansion targets EMEA and APAC with a disciplined, market-specific approach.

Portfolio evolution and investment priorities

• Portfolio structured into core, expansion, and emerging growth platforms, each with distinct roles in growth and profitability.

• Core portfolio (HA, BGS, Fracture Care) delivers strong sales, margins, and cash flow, growing above market.

• Expansion areas include ultrasonics and international markets, expected to become more material with targeted investments.

• Investment priorities include milestone-based PNS sales force expansion, increased international resources, and R&D for PNS and ultrasonics.

• Strategic marketing to raise awareness of clinical and economic benefits, with a strict ROIC lens guiding investments.