Bioventus Inc. (NASDAQ:BVS) Q4 2022 Earnings Call Transcript

Operator: The next question comes from Kyle Rose with Canaccord. Please go ahead.

Caitlin Cronin: Hi, this is Caitlin on for Kyle. So just on Exogen, you noted on your last call that you thought Exogen’s slower-than-expected recovery would remain for the rest of 2022. So what are your updated expectations now? And what’s really giving you confidence in recovery in Exogen? Thanks.

Ken Reali: Yes. Thanks for the question, Caitlin. We saw a nice sequential growth from Q3 to Q4 in Exogen which I think shows signs of stability. And what we expect from Exogen going forward is stability. We don’t expect it to be a growth driver, but we expect low single-digit growth in Exogen. The market has come back nicely post pandemic. And that — and this product, in particular, I think, was the slowest to recover. And then as we mentioned, we did reorganize our sales force in early 2022 that caused a shift in some of our Exogen business just based on relationship changes, and that has now matured the sales force that is driving this, has developed new relationships and rapport that’s continued to drive improvement in our Exogen business overall. So our hopes as we go into this year is really a low single-digit grower for our business.

Caitlin Cronin: Great. Thanks. And just on the unanticipated rebate claims, I know you talked last quarter a little bit about how you’re trying to prevent these going forward. Can you maybe talk a little bit more about how you’re doing that? Thanks.

Mark Singleton: Yes. We just — we continue to — yes, one, I would just emphasize what we talked about is the unknown amount of rebates in the future will be much less and a lot less material to our business. So that’s a positive, number one. The second thing is continuing to invest in this area with additional scrutiny and analytics around this to make sure that we’re anticipating that, further deeper analysis of the invoices that we receive and working with our different partners across the payers to understand each of those invoices and encourage and work with them to increase the integrity of the invoices that we’re getting. So I think it’s really a combination of all of those to improve our confidence going forward.

Caitlin Cronin: Got it. Thank you.

Operator: The next question comes from Drew Ranieri with Morgan Stanley. Please go ahead.