Bioventus at Canaccord Conference: Strategic Growth Path

On Tuesday, 12 August 2025, Bioventus Inc. (NASDAQ:BVS) presented at Canaccord Genuity’s 45th Annual Growth Conference, outlining its strategic plans for growth and improved financial performance. CEO Rob Claypool emphasized the company’s mission to support patient recovery, while also highlighting both opportunities and challenges in achieving its ambitious goals.

Key Takeaways

• Bioventus aims to become a $1 billion high-growth, high-profit company.
• The company reported over $550 million in annual revenue and 14% organic revenue growth last year.
• Key growth areas include pain treatments, surgical solutions, and restorative therapies.
• International expansion and leadership changes are expected to drive future growth.
• Cash flow is projected to nearly double this year, indicating strong financial health.

Financial Results

Bioventus showcased robust financial performance:

• Annual revenue exceeds $550 million with a market opportunity of over $6 billion.
• Last year, the company achieved over 14% organic revenue growth.
• Projected revenue growth for this year is nearly double the rate of its operating categories.
• Gross margin remains strong in the mid-70s, with profit margin guidance just over 20%.
• Cash flow is expected to nearly double, with net leverage anticipated to drop below 2.5 times by year-end.

Operational Updates

Bioventus is focused on expanding its core and emerging business segments:

• In pain treatments, the company is expanding with the Xcel PRP system through a partnership with Apex Biologics.
• FDA clearances for STIM trial and Telesmen are set to bolster the P&S business.
• The surgical solutions segment is enhancing its Ultrasonics platform for spinal surgery.
• Restorative therapies, including Exagen fracture care technology, saw double-digit growth last quarter.

Future Outlook

Bioventus outlined its growth strategy across various business areas:

• Core businesses like Bone Graft Substitutes and Fracture Care are expected to grow in the mid to high single digits.
• Expansion businesses, including Ultrasonics and International, aim for double-digit growth.
• Emerging businesses such as P&S and PRP are projected to contribute significantly to overall growth by 2026.
• The P&S market is expected to exceed $500 million by 2029, with the US PRP market nearing $400 million.

Q&A Highlights

During the Q&A session, CEO Rob Claypool addressed several key topics:

• Expectations for a stronger second half include a 300-basis point growth improvement due to easier comparables and increased growth in key segments.
• The Accel PRP partnership allows Bioventus to enter the PRP market efficiently without acquisitions.
• The STIM trial clearance is crucial for physician assessments and reimbursement processes.
• An expanded P&S sales force is planned, with significant growth expected in 2026 and 2027.
• International strategy enhancements include appointing new leadership to scale effectively.

In conclusion, Bioventus is poised for substantial growth and improved financial health. For a detailed overview, refer to the full transcript below.

Full transcript - Canaccord Genuity’s 45th Annual Growth Conference:

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Good afternoon and thank you for joining us at this year’s Canaccord Genuity growth conference. My name is Caitlin Cronin and I’m one of the medical advice analysts here at Canaccord Genuity.

With us today is BioVentis, a medical device company commercializing innovations for active healing across the orthopedic landscape. We’re very pleased to be joined today by Rob Claypool, CEO. And before we begin, I want to remind everyone of any relevant disclosures which can be found on our conference and or firm website. We will begin with a brief presentation by the BioVentis team followed by a fireside chat, and I will try to leave a couple of minutes for any questions from the audience. And with that, I’ll turn it over to Rob.

Rob Claypool, CEO, BioVentis: Alright. Thank you, Caitlin. Good afternoon, everybody. Thanks for joining today. So at BioVentis, we’re on a mission to help patients recover and live life to the fullest.

I’m in my second year as CEO of the company and over the next few minutes, I hope to convey to you why I’m even more excited about the company today than when I joined and our potential to drive significant shareholder value. But before I do that, let me just there we go, take care of this. So, during my remarks today, I’ll be making some forward looking statements and also discussing some non GAAP metrics. For more information on those, please refer to our latest 10 ks and 10 Q filings which are filed with the SEC and also available on our website. Okay, with that out of the way, let me provide you with a brief overview of BioVentis.

So, have three businesses. We have pain treatments, surgical solutions and restorative therapies. And in a minute, I’ll provide you with more information about each of those portfolios. On an annual basis, we generate over $550,000,000 in revenue and when you look across our product categories, they represent a market opportunity of over $6,000,000,000 Now, one of the really special aspects of BioVentis, for a small cap company, is that we have multiple paths to creating shareholder value. First, we have a very diverse portfolio and we play in large and growing markets.

And in each one of those spaces, we’re either a category leader or a growth leader. And with that world class portfolio, we have the ability to drive above market revenue growth on a consistent basis. Importantly, we also have a very healthy peer leading gross margin. And when you combine that peer leading gross margin in the mid seventies with above market revenue growth and you add to it the cost efficiencies that we have the ability to drive as we scale, well that combination provides an excellent platform for us to continue to expand our margins while increasing profitability and cash flow. So as we look ahead, we’re very excited about our ability to drive consistent shareholder value as we aim to become a $1,000,000,000 high growth, high profit, high cash flow company.

Now over the past few years, we’ve made significant progress with our financial performance and we believe we are well positioned to sustain that moving forward. When I first arrived at the company, I told everybody that our first priority was to increase and accelerate our revenue growth. We did that last year bringing strong growth back to the company and driving organic revenue growth over 14%. And this year, despite challenging first half comparables, we’ll still grow nearly 2x of the categories that we play in. The second priority for us was improving our profitability and that’s from again, growing above the market and leveraging that very strong mid-70s gross margin.

And when you look at our guidance for this year, which infers a margin just over 20%, that’s exactly what we’re doing with another 100 basis points improvement. So, going forward, we expect to sustain that again by leveraging above market growth, strong profit margin to drop profitability to the bottom line and expand our margins. Now, a cash flow and a leverage standpoint, this is an area where we’ve been challenged in the past, but we’ve also made significant progress in this area. It wasn’t that long ago that we were cash flow negative and now we expect to nearly double cash flow again this year. So, significant improvement, but more importantly, we see another significant step change this year in both our cash flow and our leverage.

So, as you can see, you know, we’re encouraged by our early progress, but important to emphasize that we feel like we’ve just begun and that we’re again very well positioned moving forward to sustain this performance, especially with our very strong portfolio, the strategy that we have in place and this increased financial discipline with the business. Again, we expect that combination to drive continued improvement across our financials moving forward. All

Unidentified speaker: right. Now, got to go back some, there we go.

Rob Claypool, CEO, BioVentis: Yeah. One second. Okay. So, as mentioned earlier, sorry about that. So, as mentioned earlier, three businesses with pain, surgical and restorative and let me just briefly tell you about the portfolio across each.

Again, within each space, we’re either a category leader or a growth leader. So, starting with pain treatments and our hyaluronic acid or line, this is led by our flagship single injection therapy Duralane and we believe in this big market that we have an unbeatable combination. We have strong clinical differentiation. We have the largest dedicated sales organization in the space and we have a very strong platform of private payer contracts, which give us access, broad access to the market and we believe position us to continue to grow above the market. And recently, we’ve announced the expansion of our pain treatments business with the addition of a world class PRP system called Xcel, which we added to our portfolio through a distribution agreement with Apex Biologics.

Now, the Excel system is designed to provide both precision and efficiency to the physician. Precision from the standpoint that allows for easy customization of the treatment, of the PRP treatment based on different patient applications and efficiency because it saves significant procedural time. We’re very excited to have this in the portfolio now, piloting it in the back half of this year and plan on driving it aggressively going forward. And then we just made a major step forward in our pain treatments business with respect to P and S with the five ten ks FDA clearances of STIM trial and Telesmen. For those of you who are unfamiliar with it, STIM trial is our first ever trial lead.

Not having this in our portfolio in the past has significantly hindered growth because many physicians prefer to test if a patient, to assess if a patient responds to PNS therapy before doing an implant and we haven’t had that in our portfolio. And also, many payers require this for reimbursement. And this is complemented by Talisman. So this combines our patented electric field conduction technology with an integrated pulse generator to potentially reach deeper, thicker nerves. We think that it has tremendous potential going forward and for a physician this means that it gives the physician the ability to, for easier placement and to potentially broaden their patient population for addressable nerves.

Now, if we go on to the by the way, I should say for the P and S business that, you know, in this, feel like it’s just the start. We’re determined to build the most complete and best portfolio in the P and S market and I think you can see from our recent innovation and our clearances of StimTrial and Talisman that we have the internal R and D team to do exactly that. Now on to surgical solutions and I’ll start with our world class ultrasonics platform. Many of you may be familiar with this space. We’re focused on primarily on spinal surgery and bone cutting.

And for ultrasonics, today that market by the way for spine surgery is dominated by drills and hand tools and we believe we have the potential to change the standard of care in that space. And why is that? Because our Ultrasonics platform provides exceptional precision and control to the surgeon. It also reduces patient blood loss and it saves significant amount of time. One surgeon told me recently that it’s saving him forty five minutes per case.

So this isn’t, you know, a little bit of time that when you add it up over the course of a year amounts to a lot. Every case, it’s saving him forty five minutes. Another surgeon told me that he was about to retire and this has elongated his career because it’s so much easier on his body. And yet another one said that, you know, during his career it’s rare that he’s seen revolutionary technology but that our ultrasonics technology exactly is exactly that and we agree and we’re going to invest in it aggressively and drive it hard over the coming years. We also have in our surgical business bone graft substitutes with our flagship product OsteoAmp.

Now, this is also in a very large market. We’re focused on the premium segment and that segment alone is another billion dollar segment and in that space, we have a product with OsteoAmp that provides similar results across a broad range of procedures but also has the potential to provide material savings to a hospital. So we have both the clinical and the economic value proposition in this market and we intend to continue to drive this business aggressively as well by raising awareness of both that clinical and economic value proposition with bone graft substitutes. I’ll move on to the last one which is restorative therapies with our proven fracture care technology, Exagen. Now this is a business that the company had deprioritized in the past and the result was that it declined for five years in a row.

We’ve restored growth to that business and we did that by increasing the focus on the business, improving the commercial fundamentals and making a series of small investments that have had a very high ROI over the last couple of years. The result last quarter as we just reported, this business grew in the double digits. So, a very nice improvement here. So, as you can see, we’re really excited about the portfolio we have and our ability to drive significant growth short, mid and long term, which is a good segue to the next slide. We look at our growth through this lens.

So first, we have our core businesses that I referenced, VGS and Fracture Care. Now these businesses make up a significant portion of the company’s overall revenue and as referenced on the previous slide, we believe we have the ability to continue to grow these above the market with a combined growth rate in the mid single digit to high single digit. With that unbeatable combination that I mentioned, BGS with both that clinical and economic value proposition and as I mentioned with fracture care, really just by returning focus and discipline to the fundamentals within that space. Now, we’re layering on top of that what we consider to be our expansion businesses. In that we have our Ultrasonics and our International business.

Both of these today are less than 100,000,000 in size. So they represent combined about a quarter of the company’s revenue. But with Ultrasonics, as I mentioned, we have the opportunity to change the standard of care in that space. And with International, we’ve grown up as a US company, so we have significant untapped potential within our international business. So naturally, that’s why we believe strongly that we can grow double digits in those spaces.

We also just brought in a new leader recently over our surgical business that Ultrasonics is a part of and over our international business in order to ensure that we reach our full potential with both of those expansion businesses. And then we have our emerging businesses and what might have occurred to you is that our core businesses here, those big stable growing businesses, those are we’re leveraging those to fund both our expansion and our emerging growth opportunities. So, emerging businesses that we’re layering on top of our core and our expansion consist of the new technology that I just mentioned with P and S and PRP. Again, tremendous opportunity for growth here. P and S today, it’s about a $200,000,000 market and it’s expected to exceed $500,000,000 by 2029.

Not a lot of spaces out there that are expected to see that type of growth and again, we just have the clearance, five ten ks clearance of StimTrial and Telusman to aggressively go after this space. We’re very excited about what we can do to grow that and PRP, that’s almost $400,000,000 market in The U. S. Alone growing in the high single digits. And again, with our Excel system, now we have we’re delivering a precision and an efficiency to the market that differentiates it from other technologies.

So naturally with both of those, the markets that they’re a part of and the differentiation of our technology that we’re bringing to market, it allows us to feel very confident that we can drive not just double digit but strong double digit growth in the years ahead for both of these businesses. All right. So you guys know that driving above market growth is not the only way to create shareholder value. We have, as I mentioned before, is very strong stable gross margin in the mid-70s. And, you know, growth is exciting.

It’s even more exciting when it’s paired with a very strong gross margin and what this really means for BioVentis is that we’re in control of our own P and L. We have the ability to continue to invest in our growth while also expanding our margins. Now, in control of our P and L, ability to invest while still expanding our margins. And what we’re doing this year is an example of that. As I mentioned, midpoint of our guidance suggests a margin above 20%, that’s a 100 basis point improvement and that’s why we’re investing to grow the business and that’s what we’re going to continue to do, grow above market, leverage the gross profit, drop it to the bottom line so that we can continue to improve our margins and then again, we have the opportunity to get more efficient with our operational expenditures to further enhance those bottom margins.

And then last before wrapping up, I’ll touch on a part of BioVentis which is perhaps less understood, but that we’re equally excited about in terms of driving shareholder value and that’s our cash flow. Over the past few years, we’ve made steady progress in improving our cash flow and feel strongly that we’re well positioned for that to continue. And how we’ve been doing that? First, through the higher EBITDA, again, of market growth and leveraging that gross profit to drive higher EBITDA. And the second is we’ve significantly lowered our debt over the last couple of years and secured a lower interest rate through our recent refinancing and terms of our new term loan.

So, that obviously lowers our interest expense and that’s combined with a decrease, a significant decrease in our one time cash costs and we’ve also made good progress on our working capital, mostly from a receivables and payables standpoint and now we’re starting to attack our inventory levels. So, what’s been the result of all of this? You can see it up there, but nearly doubling our cash flow again this year versus last year and that has results in a cash flow yield of roughly 60% and our net leverage is expected to drop below 2.5 times by the end of this year. So, really strong improvement in our cash flow and what we expect to sustain going forward. And last, to wrap it up before we talk, go to shift to Q and A, you know, I’ll just emphasize again that at BioMedics we feel like we’re very well positioned to sustain our momentum.

Know, we’ve made a lot of progress with our execution and our financial discipline over the last couple of years, but it’s just the beginning of what BioVentis can achieve. And we’re very excited to continue that momentum. Again, you’ll hear it again and again by driving that above market growth, leveraging that profit to strong gross margin in order to expand our EBITDA performance and also to drive a significant acceleration in our cash flow as we march to becoming that $1,000,000,000 high growth, high profit, high cash flow company that helps patients recover and live life to the fullest. And with that, I’ll turn it back over to you Caitlin for questions.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Great. Well, you know, I think the best place to start here is the q two, given you just released the results last week and you had a good quarter where you exceeded top and bottom line expectations. And also, you maintained your full year guidance through the p and l and have continued to note expectations for stronger second half than the first half. What are the dynamics that are leading to stronger second half expectations and any signs in the Q2 and early Q3 of momentum building?

Rob Claypool, CEO, BioVentis: Yeah, thanks for the question. So, first, what we mentioned at the start of this year is that our focus and you heard it during the presentation is to drive above market revenue growth, expand our profitability and improve our cash flow. And what we saw in the first half of the year is good progress across all three of those. When we look at the back half of the year, our guidance suggests an improvement in our growth rate of about 300 basis points. Nearly half of that will come from having the tougher comparables behind us from the first half of the year and then the rest of that’s going to come from increased growth in several of our businesses including and BGS where we have good line of sight to our pipeline and the ability to grow by bringing on new business.

And of course, other businesses are contributing to that as well. So, we feel good about the back half of the year and of course we’re early on, but we’re happy with our progress in the second quarter and leading into the third quarter in order to accomplish our goals for the year.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Great. And then let’s just move to pain treatments. So, you called out in your presentation PRP and P and S as being emerging businesses for your portfolio. Just starting with Accel PRP, I mean, you announced the partnership earlier this year. You know, just briefly describe the rationale for the partnership here to the audience.

Rob Claypool, CEO, BioVentis: Yeah, thanks for the question. So, first, you know, we did we’re constantly even though we’re let me back up and say we’re very happy with the portfolio we have. Over the last couple of years, we’ve divested a couple of businesses and what we have today, we believe positions us very well to drive attractive growth. Nonetheless, we’re always going to be looking at the market and seeing what opportunities exist and in this space, when we were doing our research, we saw that over 80% of customers out there are using a PRP system, but obviously not ours because we didn’t have one. So, we looked at it and said, well, you know, it makes sense for us to enter that space, but we didn’t want to build our own and we didn’t want to buy a PRP company, so that led us to the distribution approach.

So, we canvassed the market extensively looking at many different PRP systems and we identified what we think is the best out there with the Excel system. Again, that’s because of the precision and efficiency that that provides. Fortunately, they were very interested in the partnership as well and it’s off to a good start. We’re piloting the new PRP, our new addition to the portfolio in the back half of this year and then we expect to ramp up in 2026.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: And then you mentioned, you know, leveraging that specific call point. Will the Salesforce be the one distributing the product or you have, you know, additional sales team members to add?

Rob Claypool, CEO, BioVentis: Yeah, no, that will leverage our existing sales footprint.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Great. And then, you know, what are your expectations for this product to contribute in 2025 and 2026?

Rob Claypool, CEO, BioVentis: Yeah. The way I think about it is when we think, okay, core businesses growing above the market, expansion businesses on top of that with Ultrasonic International and then these emerging businesses. And when we take those two emerging businesses combined with P and S and PRP, we expect those two alone to contribute about 200 basis points of growth to the overall company in 2026. So, starts to become meaningful in 2026, but obviously we expect to ramp up significantly from there within both PRP and P and S.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: And then just turning to P and S more specifically, this historically has been a very small portion of your business, but you’ve called out the subsegment, you know, as this emerging growth driver. And, you know, just remind us with, you know, the clearance of STIM trial, your first lead, why that’s a really important piece of the PNS algorithm to add to your portfolio.

Rob Claypool, CEO, BioVentis: Yeah, and to your question, you know, it is important to point that out that in the recent past, we’ve really been focused on our R and D efforts, not on our commercial efforts in this business. So, we have just a few million in sales in this business and a handful of people on it. Now, we’re going to ramp up significantly as we move forward. That combination of STIM trial and TELISMENT. STIM trial, again, this is, you know, many physicians prefer to assess whether a patient will respond to PNS therapy before doing an implant.

This makes sense. These are patients suffering from chronic and debilitating peripheral pain. Some of these patients have a hard time touching their own skin because of how painful it is. So, you know, many physicians don’t want to do something else with the patient unless they know it’s going to work and that’s in the form of a trial lead. And also for insurance companies, you know, many of them prefer that that’s assessed before doing a permanent implant.

So, we haven’t had that in our portfolio in the past and that’s been a hindrance to growth. Not only do we have it now with stim trial, but it’s also very complementary to our permanent implant with Telesman. So, that one two combination is it for us, it changes the game with our P and S business, is why we’ll be investing in and ramping up that business much more aggressively going forward.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: And I believe the sales force here differs from the Salesforce. I mean, how large is it now and then how much are you planning to add to the team here and what’s kind of the timeline for those additions?

Rob Claypool, CEO, BioVentis: Yeah. So, you’re correct. It is a different sales force and as I alluded to briefly there, it’s very small today. It’s been less than 10 people that have been out in the field with our existing business. So, naturally, we’re going to ramp that up significantly.

For competitive reasons, we’re not sharing exactly how many we’ll have and when that’ll take place, but you can expect it to ramp up moderately this year as we’re in the pilot phase and then much more significantly in 2026 and 2027.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Great. And then, you know, just with the last minute here, let’s touch on OUS. You know, Rob, with your prior experience, I think you’re focused on really improving the international strategy and OUS was strong in the Q2. Any early initiatives that you and the team have started to drive there?

Rob Claypool, CEO, BioVentis: Yeah. Well, again, I’ll point out that it’s significant untapped opportunity. You think about we have less than $100,000,000 in our international revenue and, you know, that’s really because we as a company have been focused on The U. S. Not because there’s not patients internationally that, you know, would benefit from our technology.

So, first thing was bringing stronger focus and leadership over the business. We hired somebody in to run this, somebody that worked for me in the past and who has a proven track record not only of knowing the international space really well, but somebody who can drive both strategy and execution, hands on execution at the same time. So, the first is bringing that leadership and the focus to the international business and then what we’re doing now is developing the right strategy to scale effectively and efficiently for international and what that means is not going all places to, you know, to do all things, but being focused on the right markets with what aspects of our portfolio with the right go to market strategy so that we can invest aggressively in those areas and drive that very strong double digit growth that we referred to before. So, you know, we still have a lot more work to do with our international business but encouraged by some of the early progress and expect to see a lot more moving forward.

Caitlin Cronin, Medical Advice Analyst, Canaccord Genuity: Great, I think we’ll end it there.

Rob Claypool, CEO, BioVentis: Thanks, Thank you. Thanks, everyone.

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