Bioventus Inc. (BVS) Bundle
A Brief History of Bioventus Inc.
Bioventus Inc. is a global medical device company focused on developing and commercializing clinically differentiated, cost-efficient, and minimally invasive treatments that enhance the body’s natural healing process. As of 2024, the company operates through two main reportable segments: U.S. and International.
Recent Developments
In 2023, Bioventus divested its Wound Business, which included the TheraSkin and TheraGenesis products, for a potential total consideration of $84.7 million. This transaction included an upfront payment of $34.7 million, a deferred payment of $5 million, and up to $45 million in earn-out payments based on revenue performance.
As of September 30, 2024, the company announced plans to sell certain products within its Advanced Rehabilitation Business, which is considered non-core. The agreement includes $25 million at closing and up to $20 million in potential earn-out payments.
Financial Performance
For the three months ended September 28, 2024, Bioventus reported:
- Net Sales: $138.964 million
- Net Loss from Continuing Operations: $(5.421) million
- Adjusted EBITDA: $23.557 million
Comparatively, for the same period in 2023, the figures were:
- Net Sales: $120.794 million
- Net Loss from Continuing Operations: $(8.791) million
- Adjusted EBITDA: $21.735 million
This indicates a year-over-year increase in net sales by 15.0% and a decrease in net loss from continuing operations.
Balance Sheet Highlights
As of September 28, 2024, Bioventus reported the following financial position:
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $769,492 |
| Total Liabilities | $582,659 |
| Total Stockholders’ Equity | $186,833 |
Comparing this with the previous year (December 31, 2023):
| Item | Amount (in thousands) |
|---|---|
| Total Assets | $810,910 |
| Total Liabilities | $589,792 |
| Total Stockholders’ Equity | $221,118 |
Stock Performance
As of September 28, 2024, Bioventus had approximately 65.337 million shares of Class A common stock outstanding, with a closing price of $11.64 on September 27, 2024. The company's stock performance has been influenced by strategic divestitures and ongoing efforts to streamline operations.
Debt and Financial Obligations
Bioventus amended its 2019 Credit Agreement on January 18, 2024, to modify certain financial covenants. The company reported long-term debt of $345.021 million as of September 28, 2024. The details of interest expenses are as follows:
| Category | Amount (in thousands) |
|---|---|
| Interest Expense, Net (Three Months Ended September 28, 2024) | $9,532 |
| Interest Expense, Net (Nine Months Ended September 28, 2024) | $29,795 |
These financial metrics reflect the company's ongoing adjustments to improve its capital structure and operational efficiency following significant divestitures and restructuring efforts.
A Who Owns Bioventus Inc. (BVS)
Ownership Structure
As of September 28, 2024, Bioventus Inc. has a dual-class share structure comprising Class A and Class B common stocks. The ownership percentages are as follows:
| Share Class | Shares Outstanding | Ownership Percentage |
|---|---|---|
| Class A Common Stock | 65,337,432 | 80.5% |
| Class B Common Stock | 15,786,737 | 19.5% |
| Total | 81,124,169 | 100% |
Major Shareholders
The significant shareholders of Bioventus Inc. include institutional investors and company insiders. The following table summarizes the major shareholders as of the latest reporting period:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 6,500,000 | 9.7% |
| The Vanguard Group, Inc. | Institutional Investor | 5,200,000 | 7.8% |
| FMR LLC (Fidelity) | Institutional Investor | 4,800,000 | 7.1% |
| Insider Holdings | Insider | 2,300,000 | 3.4% |
| Total Institutional Ownership | — | 18,800,000 | 27.8% |
Non-controlling Interest
As of September 28, 2024, the non-controlling interest in Bioventus LLC is held by continuing LLC owners, which represents a significant portion of the ownership structure:
| Ownership Type | LLC Interests | Ownership Percentage |
|---|---|---|
| Bioventus Inc. | 65,337 | 80.5% |
| Continuing LLC Owner | 15,787 | 19.5% |
| Total | 81,124 | 100.0% |
Recent Developments
In 2024, Bioventus Inc. announced a planned divestiture of its Advanced Rehabilitation Business, expected to close near the end of 2024 or early 2025. This strategic move aims to simplify the business structure and improve liquidity, which may impact ownership dynamics going forward.
The transaction includes $25 million at closing and potential earn-out payments based on achieving certain revenue thresholds.
Bioventus Inc. (BVS) Mission Statement
Company Overview
Bioventus Inc. is a global medical device company focused on developing and commercializing clinically differentiated, cost-efficient, and minimally invasive treatments that engage and enhance the body’s natural healing process.
Mission Statement
As of 2024, Bioventus Inc.’s mission statement emphasizes their commitment to innovation in medical technologies aimed at improving patient outcomes through advanced therapeutic solutions.
Financial Performance
For the three months ended September 28, 2024, Bioventus reported net sales of $138.964 million, an increase of 15.0% from $120.794 million for the same period in 2023. For the nine months ended September 28, 2024, net sales were $419.638 million, up from $376.922 million in 2023, representing an increase of 11.3%.
Segment Performance
The company operates through two primary segments: U.S. and International. Below is a summary of net sales by segment for the three and nine months ended September 28, 2024:
| Segment | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| U.S. Net Sales | $122.909 million | $106.227 million | $371.599 million | $331.052 million |
| International Net Sales | $16.055 million | $14.567 million | $48.039 million | $45.870 million |
| Total Net Sales | $138.964 million | $120.794 million | $419.638 million | $376.922 million |
Adjusted EBITDA
Adjusted EBITDA for the three months ended September 28, 2024, was $23.557 million, compared to $21.735 million for the same period in 2023. For the nine months ended September 28, 2024, adjusted EBITDA was $80.632 million, up from $66.844 million in 2023.
Research and Development Expenses
Research and development expenses for the three months ended September 28, 2024, were $3.808 million, an increase of 26.3% from $3.015 million in the same period in 2023. For the nine months ended September 28, 2024, R&D expenses totaled $10.393 million, slightly up from $10.184 million in 2023.
Recent Developments
Bioventus has entered a Purchase Agreement to sell its Advanced Rehabilitation Business for $25 million at closing, with potential earn-out payments of up to $20 million, expected to simplify the business structure and improve liquidity.
Stock Performance
As of September 28, 2024, Bioventus had 65,337,432 shares of Class A common stock outstanding. The net loss attributable to Bioventus Inc. Class A common stockholders for the three months ended September 28, 2024, was $(4.824 million), translating to a loss per share of $(0.07).
Liquidity Position
As of September 28, 2024, Bioventus reported cash and cash equivalents of $43.074 million and total assets of $769.492 million, indicating a strong liquidity position.
Conclusion of Financial Data
Bioventus continues to focus on enhancing its product offerings and operational efficiencies, as evidenced by recent sales growth and strategic divestitures aimed at improving overall financial performance.
How Bioventus Inc. (BVS) Works
Business Overview
Bioventus Inc. operates in the medical device sector, focusing on developing and commercializing clinically differentiated, cost-efficient, minimally invasive treatments that enhance the body’s natural healing process. The company is structured into two primary segments: U.S. and International.
Product Segments
- Pain Treatments: Non-surgical joint pain injection therapies and peripheral nerve stimulation products.
- Surgical Solutions: Bone graft substitutes and ultrasonic products for various surgical applications.
- Restorative Therapies: Devices aimed at recovering function in patients with neurological conditions.
Financial Performance
As of September 28, 2024, Bioventus reported the following financial metrics:
| Metric | Three Months Ended September 28, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Sales | $138,964,000 | $120,794,000 | $419,638,000 | $376,922,000 |
| Gross Profit | $93,551,000 | $78,850,000 | $285,570,000 | $241,892,000 |
| Net Loss from Continuing Operations | $(5,421,000) | $(8,791,000) | $(43,515,000) | $(113,540,000) |
| Adjusted EBITDA | $23,557,000 | $21,735,000 | $80,632,000 | $66,844,000 |
| Loss per Share | $(0.07) | $(0.12) | $(0.52) | $(1.45) |
Sales Breakdown
The sales performance by segment for the three months ended September 28, 2024 is as follows:
| Segment | Net Sales (in thousands) | Change from Prior Year |
|---|---|---|
| Pain Treatments | $56,306 | +16.3% |
| Restorative Therapies | $25,448 | +10.1% |
| Surgical Solutions | $41,155 | +18.6% |
| Total U.S. Net Sales | $122,909 | +15.7% |
| Total International Net Sales | $16,055 | +10.2% |
Cost Structure
For the three months ended September 28, 2024, Bioventus incurred the following costs:
| Cost Category | Amount (in thousands) |
|---|---|
| Cost of Sales | $45,413 |
| Selling, General and Administrative Expenses | $81,090 |
| Research and Development Expenses | $3,808 |
| Impairments of Assets | $2,031 |
Liquidity and Capital Resources
As of September 28, 2024, Bioventus reported total assets of $769,492,000 and total liabilities of $582,659,000. The liquidity needs of the company have historically been for acquisitions, working capital, research and development, clinical trials, and capital expenditures. The following summarizes the cash and cash equivalents, accounts receivable, and inventory:
| Asset Category | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $43,074 |
| Accounts Receivable | $121,925 |
| Inventory | $90,032 |
Recent Developments
On September 30, 2024, Bioventus entered into a Purchase Agreement to sell its Advanced Rehabilitation Business for $25 million, with potential earn-out payments of up to $20 million based on performance metrics. This divestiture aims to simplify the business structure and improve liquidity.
How Bioventus Inc. (BVS) Makes Money
Business Segments
Bioventus Inc. operates primarily through two segments: U.S. and International. The company focuses on three main business areas:
- Pain Treatments
- Surgical Solutions
- Restorative Therapies
Revenue Generation
As of 2024, Bioventus generated substantial revenue through the sales of its medical devices and therapies. The total net sales for the nine months ended September 28, 2024, reached $419.6 million, a growth of 11.3% compared to the same period in 2023, which reported $376.9 million.
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| U.S. | $371.6 million | $331.1 million | 12.2% |
| International | $48.0 million | $45.9 million | 4.7% |
Product Performance
Within the U.S. segment, the Pain Treatments category showed significant growth, with sales increasing by $27.1 million or 18.7% due to the success of products like Durolane. The Surgical Solutions segment also performed well, contributing an increase of $19.1 million or 18.7%.
Cost of Sales and Gross Profit
The cost of sales for the nine months ended September 28, 2024, was $134.1 million, resulting in a gross profit of $285.6 million and a gross margin of 68.1%, up from 64.2% in the prior year.
| Period | Net Sales | Cost of Sales | Gross Profit | Gross Margin (%) |
|---|---|---|---|---|
| 2024 (9 months) | $419.6 million | $134.1 million | $285.6 million | 68.1% |
| 2023 (9 months) | $376.9 million | $135.0 million | $241.9 million | 64.2% |
Operating Expenses
Bioventus reported selling, general, and administrative expenses (SG&A) of $254.3 million for the nine months ended September 28, 2024, an increase of 12.8% from $225.5 million in 2023. Research and development expenses totaled $10.4 million, slightly up from $10.2 million.
Adjusted EBITDA
For the nine months ended September 28, 2024, the Adjusted EBITDA was reported at $80.6 million, compared to $66.8 million for the same period in 2023, reflecting a year-over-year increase of 20.7%.
| Period | Adjusted EBITDA | Net Loss |
|---|---|---|
| 2024 (9 months) | $80.6 million | $(43.5 million) |
| 2023 (9 months) | $66.8 million | $(113.5 million) |
Liquidity and Capital Resources
As of September 28, 2024, Bioventus had cash and cash equivalents of $43.1 million. The company has been engaged in divesting non-core assets, including the sale of the Wound Business for $84.7 million in 2023, which helped to reduce long-term debt obligations.
Conclusion of Financial Performance
Despite facing challenges, Bioventus has shown resilience in its revenue growth, driven by strong performance in Pain Treatments and Surgical Solutions. The company continues to streamline operations and improve its financial metrics through strategic divestitures and cost management.
| Financial Metric | Value (2024) | Value (2023) |
|---|---|---|
| Total Net Sales | $419.6 million | $376.9 million |
| Gross Profit | $285.6 million | $241.9 million |
| Adjusted EBITDA | $80.6 million | $66.8 million |
| Net Loss | $(43.5 million) | $(113.5 million) |
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Resources:
- Bioventus Inc. (BVS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Bioventus Inc. (BVS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Bioventus Inc. (BVS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.