Bioventus Inc. (BVS) Earnings Call Transcript & Summary

Okay. Good afternoon, everyone. I'd like to welcome you to the final session of Wednesday here at the JPMorgan Healthcare Conference. My name is Allen Gong. I'm on the medical supplies and devices team. And I'm very excited to be introducing the Bioventus management team. Heading the prepared remarks will be Ken Reali, the CEO; and off to the side, you can't see him right now but I promise you he's there, is VP, Investor Relations, Dave Crawford, who will be joining us for the Q&A afterwards. For the Q&A, I will be heading it. So if you have any questions, please feel free to e-mail them to me. Send them to me over Bloomberg or just input them into the online web portal. With that, Ken, I'll leave you to the prepared remarks. Thank you.

Great. Thank you, Allen, and good afternoon, everybody. It's my privilege to be in front of you today talking to you about Bioventus. I am going to cover a general overview of the company of Bioventus and then talk about our priorities for 2022. And moving on to the forward-looking statements slide, I will be making forward-looking statements today and I would ask you to please refer to our latest 10-Ks and 10-Qs for further information. As I start out, I do want to reference a press release that we sent out yesterday morning announcing our stellar results for 2021. And this was a conclusion of a truly transformational year for Bioventus that started with our IPO in February of last year, the acquisition of Bioness in late March of last year and then concluded with the acquisition of Misonix in the fourth quarter in late October of last year. Truly it has made us an exciting company in med tech, which we're very proud of. Our 1,300 employees now span across our corporate headquarters here in Durham, North Carolina; our operations center in Memphis, Tennessee; our international operations in Amsterdam; as well as Valencia, California and Farmingdale, New York. So all of our employees and our strongly engaged employees are excited to be part of our team as we progress through 2022. Turning to our pro forma revenue for 2021. We're at $500 million pro forma. And I would like to emphasize a couple of points. First of all, we are broken up into 3 verticals of pain treatments, restorative therapies and then, with the acquisition of Misonix, our bone graft substitutes vertical we're now calling Surgical Solutions. What's really important to emphasize with Bioventus is our diversity in our revenue. About 25% of our revenue is tied to elective surgical procedures. We're diverse across the geographical U.S., not specifically tied to any type of geography or physician. That is a true strength of our company. And as we've dealt with the pandemic, I would say it's shown in our performance, particularly over the past couple of quarters. The company has a strong momentum. And one of the things that we've done in 2021 is bridge from our high single-digit revenue growth that we've historically had for the past 5 years to double-digit growth. And the acquisitions which drive accretive revenue growth have put Bioventus in a position where we feel we'll consistently be able to gain double-digit growth as we execute on our strategy. Our products are all in the high 70s in terms of growth margins to low 80s. And today, we have 700 salespeople in the United States, 500 of which are direct employee reps. We can say about our portfolio 1 of 3 things when we talk about our products. We're either the market leader, we're the growth leader or we're the technology leader. Moving on to the next slide and a little bit about our verticals itself. Starting with pain treatments, well, we cross, also with our verticals, the spectrum of orthopedics where, if you look at the call point synergies, almost every specialty in orthopedics we cover, which is actually a strength of the company and one that, with our acquisitions, have allowed us to go deeper with our customers as well. So looking at pain treatments, that's our HA business, coupled with StimRouter, our peripheral nerve stimulator. Restorative therapies is a combination of our market-leading Exogen ultrasound stimulator, the double-digit grower in our advanced rehabilitation area, and then the wound business we recently acquired from Misonix. Surgical Solutions is a combination of our growth-leading bone graft substitutes and then the bone scaffold used for spinal decompressions and SonaStar used in neurocranial procedures. All told, we have strong tailwinds in our business today based on the demographics of our population itself. First of all, 50 million Americans today live in chronic pain. And as we all know, opioid dependency is a real issue and it's certainly tied to orthopedic surgical procedures, which leads us to our peripheral nerve stimulation device and one of the real avenues we see for growth and one of the drivers of our acquisition of Bioness last March. Osteoarthritis is projected to rise to over 78 million people by 2040. And this itself we address with our hyaluronic acid products where we provide definitive pain relief with our #2 market share franchise in hyaluronic acid. And we also are very excited about the future of CartiHeal, which also identifies and addresses a certain type of osteoarthritis patient. All told, the aging population is an opportunity for our business, an opportunity for our devices to help these patients. There's projected to be a 50% increase in Americans over 65 by 2040. So these are all great tailwinds for our business and certainly ones that we look to leverage in our double-digit growth strategy. On to the next slide, we have a well-defined and definitive opportunity and understood opportunity to drive shareholder value. Certainly, that starts with delivering double-digit growth, and that's certainly a focus across our management team and certainly across our very strong performance-oriented commercial channel. Margin expansion, operating margins through synergies and cost savings and, of course, revenue growth is a key focus for us and will be going forward. Repeatable cash flow conversion, we're fortunate our 80% to 90% cash flow conversion really helps as we drive our EBITDA ratio and also our value-creating M&A. Critical to our strategy, we have a very refined strategy in M&A. And certainly, it's designed to enhance our scale, leverage our commercial channel and our overall infrastructure. On to the next slide, and this provides a little more granular detail today on how we're driving to get our double-digit growth. And certainly, we have a lot of near-term growth drivers in our business, starting with our hyaluronic acid, our single-injection DUROLANE as well as our 3-injection GELSYN. Both are early in their product life cycle, DUROLANE being launched in the United States in 2018 and GELSYN in 2016. And this has led to our market-leading growth in hyaluronic acid. Bone graft substitutes, being agnostic to spinal hardware, has driven a strategy that has made us the fastest-growing player in bone graft substitutes, something we're very proud of. And this is led by OSTEOAMP, a minimally manipulated allograft that comes in multiple formulations, including the recently launched OSTEOAMP Flowable, which appeals to minimally invasive spinal fusions. Misonix has added further levers for our growth with the BoneScalpel, which has consistently grown near 20%. And we expect that to continue in the years to come, being it's only 5% penetrated in spinal decompressions. And then products in the wound business from Misonix like TheraSkin, a market-leading skin replacement product used in diabetic foot ulcers. Advanced rehabilitation, which we acquired from Bioness last March, is a growth driver in our business. And the focus there has largely been on neuro rehab, and we are bringing some of these devices to now orthopedics, particularly a product called the L300 Go, which restores gaits in patients. This is particularly relevant in post total knee patients where the quadricep muscle is particularly weak. So we're excited and we've seen a lot of excitement in the market for bringing this type of products to orthopedics. Our peripheral nerve stimulation area is an area that is untapped potential. This is a total addressable market in the billions. We are going after the postsurgical pain area in orthopedics with our StimRouter product. And then the pipeline product is TalisMann, which we expect to launch by the end of 2023. We also see growth in international. International today is only about 10% of our total revenue. As we built our product portfolio, we do see ourselves leveraging our direct international channels in Canada, the U.K. and Germany and further expanding our international presence in the Asia Pacific region. And last, but certainly not least, we see CartiHeal as a strong midterm growth driver for Bioventus as we move forward in the coming years. Innovation continues to be a key focus for Bioventus as well, and we'll continue to evolve our product line to keep them as market leaders and growth leaders through our strong R&D team and continue to look at products that we think will fit in our bag and fit with our strategy and our customer base. Moving on to the next slide on operating margin. And this is a key focus for us, and we feel we can get operating margin actually ahead of our sales growth, certainly leveraging our double-digit growth but really the integration synergies that we see. And we've gotten pretty good at integration, I would say. We proved that model with Bioness where we expected to get to breakeven with Bioness a year after the acquisition and actually started to show positive profitability with Bioness in the third quarter of 2021. The team has learned a lot about integration. And certainly, we're applying those learnings to our Misonix integration, which we'll be starting here this year and completing by the end of 2022. We're focused at Bioventus on continuous improvement. And certainly, that involves our operations, things such as lean manufacturing, things such as quality and the cost of quality and then our overall structure, and we'll continue to evolve our structure as our rapidly growing business progresses. And that is something that we're focused on that we think will drive operational synergy as well. As we announced in December, we are consolidating our operations in Memphis, Tennessee, and certainly look at that as a key lever to enhancing operating margins here in the next couple of years. Moving on to the next slide, our 2022 priorities. And I would say that this has the full attention of our management team and the full focus of our company. First of all, delivering on our double-digit organic growth. And certainly, with our hyaluronic acid business and bone graft substitute business, we'll continue to execute to drive our market penetration and gain that double-digit growth. With the acquisition of Misonix, we look for the BoneScalpel device, coupled with our bone graft substitutes, as a key lever for double-digit growth. In addition, the advanced rehabilitation business as well as our peripheral nerve stimulation business are also avenues for double-digit growth in the near term. Integrating our acquisitions will also be a key focus for us this year. Bioness will be fully integrated in the first quarter and then Misonix by year-end, and we do plan on delivering and have full insight to the $20 million of synergies we expect to get with Misonix by the end of this year. Last, but certainly not least, in terms of priorities is executing on our CartiHeal acquisition. We are preparing for a U.S. launch in the first half of 2023, and we will be financing CartiHeal with debt upon FDA approval or a couple of months after FDA approval. This is where our focus is in 2022, priorities that are distinct and clear to our management team and certainly ones that we're excited to execute going forward. Now doing a deeper dive on the next slide, on each of our verticals, starting with pain treatments. One of the things that makes us very confident in our ability to grow our HA franchise is the focus of our single-injection DUROLANE and our 3-injection GELSYN. As you can see in the graph on the lower left, we're about 20% of the market with both products today. And we compare that to SUPARTZ. And SUPARTZ has been our long-standing 5-injection product. We've maintained 40% market share with very similar competitive dynamics. So we feel, with our best-in-class and largest sales force in the industry, our private payer market access strategy and the fact that our technology is differentiated, with DUROLANE being the highest molecular hyaluronic acid on the market today, that we will continue to grab market share in hyaluronic acid and grow double digits. The market that we play in with the single- and 3-injection represents about 90% of the total HA market today. And when you look at that growth, that's about a 7% to 8% growth in that market itself. So the bridge to getting double digits, as we've consistently done, is not a great bridge and one we're confident we'll continue to do over the next several years at least. We also are excited in this segment about peripheral nerve stimulation and StimRouter. Again, just the tip of the iceberg on this addressable market that's in the billions of dollars. And our focus in 2022, as we expand our peripheral nerve stimulation sales force, is postsurgical pain and avoiding the need for opioids in a lot of these patients. Moving on to the next slide on Surgical Solutions. And again, Surgical Solutions today includes our bone graft substitutes as well as the Misonix, BoneScalpel and SonaStar. We are a small player in this market today admittedly at about 5% market share when you look at bone graft substitutes and the BoneScalpel. This is an opportunity for us as both technologies have been growing in high double digits over the past several years. We have now combined our sales forces to 1 sales force, which has essentially doubled in size. And as we've looked at account overlap, and this was an interesting process for us, we only had about 10 accounts that overlapped out of 1,000 that we have combined between the 2 companies as we combined the 2. So we see our approach to the market as being able to continue on the growth trajectory for both products with a larger sales force and, most importantly, being agnostic to spinal hardware. And we view this as a critical piece because we can fly above the fray of spinal hardware allegiances and really look at whole hospitals and every spine surgeon can be our potential customer. Most importantly, we're focused in spinal fusion and decompression, which is one of the most profitable and frequently done spinal surgery procedures today. And we can use both products in the same procedure: bone graft substitutes for the fusion; and of course, for the decompression, the BoneScalpel. Moving on to restorative therapies. And we're very excited about restorative therapies for several reasons. First of all, we see the ability to leverage our business model with Exogen using the durable medical team that we have where we take assignment of benefit. And that also is very similar to the Bioness products that we acquired, the advanced rehabilitation products, which many of those are also durable medical. So as we move forward with the integration, we've been able to leverage that business model. We also look forward to leveraging the Exogen relationships we have with lower extremity surgeons, and we will be bringing the wound products from Misonix into the Exogen sales force to drive wound products in the office. Now the office setting has become paramount in treating wounds, particularly during the pandemic. And this is not something that has been a focus with the Misonix wound sales force. The historic legacy sales force with Misonix will continue to sell to wound centers and hospitals. Thereby, we're expanding our call point with the wound products dramatically by bringing them into the office and leveraging roughly the 4,000 surgeon relationships we have with lower extremity surgeons that use Exogen that also treat wounds in the office. We also, as I mentioned, will be expanding our advanced rehabilitation products into the orthopedic sector, particularly the L300 Go, which are going to be used for post total knee procedures, restoring gait to patients with weak quadricep muscles. On to the next slide and a little bit about our integration. And as I mentioned, we've had a very successful integration with Bioness through the course of 2021 that will conclude here in the first quarter. We've learned a lot from that integration, and that integration is ahead of schedule and contributed positive EBITDA to our business in the third quarter when the expectations were actually that was going to take through the first quarter of this year. A little bit about the Misonix integration, which we're just kicking off now and we expect to conclude at the end of 2022. This is largely an integration focused on G&A and operations. It does not involve our commercial organization or very little of our commercial organization. Our sales forces do not overlap. In fact, we've been able to add products to a lot of our sales team, which they're excited about. But certainly, the focus is of gaining the $20 million of synergies, will be on G&A, public company costs and the operations area. This is less risky to the business from an integration perspective. And certainly, as we integrate operations, we'll be building redundancies into our manufacturing and operations to further derisk this process. On to CartiHeal. And CartiHeal is a product we're very excited about that we do expect to acquire later in 2022. And a little bit about what CartiHeal is. CartiHeal is aragonite. It's a red sea coral that is a cylinder plug used to treat osteochondral defects. It was named by the FDA as a Breakthrough Technology and has been shown to be superior to current standard of care, which is microfracture and debridement. And I want to highlight that superiority because it's rare in orthopedics to show superiority. In fact, most orthopedic trials are noninferiority trials. So as we've done our diligence on CartiHeal, we see a $1.3 billion total addressable market. Around 675,000 procedures are done in the U.S. every year for cartilage. We see the opportunity with CartiHeal to delay a total knee procedure, particularly in a patient age group with osteochondral defects that is in their 50s or early 60s. This is not a Medicare population, it's actually pre-Medicare and one that we can save the health care system money by delaying or even obviating the need for a total knee procedure. So more to come on CartiHeal, but we're quite excited about this. And as I said, we do view this as a medium-term growth driver. As we move forward, we gain reimbursement for the technology, and we penetrate this vast market that exists and the high need that exists today for these patients with osteoarthritis and osteochondral defects. Now on to the next slide, a little bit on our capital allocation strategy. And of course, M&A will continue to be a key element of our strategy as we move forward at Bioventus. But I do want to say that this year, we're focused on retrenchment, we're focused on digesting what we have in front of us. We may do some equity investments like we did last year with Vaporox and Trice Medical that really give us a front-row seat in a potential acquisition for us down the road. But that will be the focus for us this year as we execute on what we have in front of us and really focus on the integration, completion of Bioness and starting and completing Misonix. We'll continue to look at M&A. And certainly, the M&A, if we were to do an equity investment, would be something that we'd see as accretive to our revenue growth, certainly strong gross margins and leverage our overall infrastructure. On CartiHeal, we will fund the CartiHeal acquisition with debt. And we'll certainly look to delever ourselves to about 4x net debt by the end of 2023. This will be driven by our sales growth and our increase in our EBITDA as well as our free cash flow generation as the business continues to grow. So let me conclude by saying that Bioventus is a unique company in medical devices. We're a $500 million-plus revenue business, growing double digits in a broad spectrum of orthopedics that really provides a lot of diversity in our revenue. We feel we have a strategy for sustainable double-digit growth as we move forward. Our diversified portfolio provides multiple future growth drivers for us, both in the near term and the midterm. Our commercial footprint is extremely strong with over 700 domestic sales reps across multiple call points from the hospital to the ASC to the office. We have accelerating operating margins and certainly see opportunities for continued acceleration of our operating margins through synergies and growth and operational efficiency in our business. And we see ourselves continuing to bolster our growth through M&A and accretive M&A. And certainly, that will be a focus as we go beyond 2022. All of this on the backdrop of very strong performance-focused organization and, most importantly, culture that we're very proud of at Bioventus that has led to where we are today. Our whole team is proud of who we are and what we represent and the results that we've achieved and that we look forward to achieving in 2022. Thank you very much and look forward to taking your questions.

Okay. Thanks for the really comprehensive overview there, Ken. Just to kick off with the quarter that you preannounced, I think it was a much stronger than expected quarter. You came in a step above consensus expectations heading into the announcement, despite the fact that when we look at your business, kind of tended to look at it as the franchise that would be exposed to challenges from COVID-19, especially with Delta and Omicron on top of it. So what really drove the strength in the quarter? How are you able to maintain that momentum despite Omicron hitting you in December and then, if you don't mind, touching upon how those trends have really continued into 2022 and what kind of growth do you need to put up in this kind of environment?

Yes. Thanks for the question, Allen, and it's a good one. Look, our diversification in our business continues to be a key strength for Bioventus. And certainly, only 25% of our revenue being tied to elective surgical procedures is a key aid for us when we see curtailment of elective procedures in certain geographies. With that said, the bone graft substitute business was strong for us in the fourth quarter. And that's a credit to our team. I would say and emphasize, and we've said this before, when we report bone graft substitute revenue, this is not stocking orders. These are real procedures that are done because most of our products are not stocked at hospitals, they're put on consignment so they're only built when actual procedures are done. But our bone graft substitute business is highly penetrated across the whole geography of the United States, in particular, which aids -- so when we see regional shutdowns, certainly, that doesn't shut down our whole business. It may affect 8% of our business. With that said, as we look at performance, we did have some headwinds, particularly in the early part of the fourth quarter in October and certainly at the very end of the fourth quarter with Omicron in December. But it's a credit to our team that we were able to power through that. I would say that we continue to see some headwinds as well in the new year for the same reasons that we saw at the end of the fourth quarter and I think that most companies are seeing with the incredible strain on hospitals and health care providers, and we certainly hope that this goes quickly and the Omicron phase of this pandemic recedes here in the near term as some experts are predicting.

Okay. And also touching on the impact down the P&L. I know you didn't preannounce your P&L for the quarter nor have you provided guidance. But on top of the top line impact, we obviously also have challenges from inflation, from supply disruption and a whole host of things that are really weighing on companies' abilities to get supply and manufacture. So from your point of view, like what was the impact on your fourth quarter? And similarly, is that getting better in 2022? Is it getting worse? Is it staying the same? And how quickly can that get better given the lagging impact some of increased costs might have on the P&L as things work through inventory?

Yes. We've been fortunate in general, Allen. I would say that with supply chain and some of the issues that we've heard across the world, we've been fortunate that, that has not impacted our revenue. I would say that the greatest impact we've seen is maybe paying a little bit more for shipping and distribution than we have otherwise. Some of that's related to shipping costs going up. Others is related to the fact that, for instance, one of our HA products that comes from Japan got stuck in the harbor in Southern California. We ended up having to airfreight some from Japan so we paid more for that. So those are some examples that we've had to deal with. As far as 2022, we have this built in our model that we will have some more expenses, especially associated with shipping or distribution. But at the same point, we think we have enough leverage we can gain in the business, an improvement in operating margins in other areas. As we gain synergies, as we drive efficiencies in operations, we see low-hanging fruit there that will obviate some of the increases, some of the inflationary concerns in our business today.

Okay. That's very helpful. Moving on to M&A and really how busy you've been on that front, right, with the 2 sizable deals with Bioness, Misonix. Looking at it further, it's not traditional M&A, but with CartiHeal on top to close in 2023, you've clearly been very busy on the inorganic front. So when we think about 2022, right, you clearly have pretty aggressive time lines for integrating those 2 deals ahead of CartiHeal. And it seems like you are still willing to be looking at things from an inorganic perspective. But should we think of them as skewing maybe a bit smaller? From a strategic standpoint, what would you classify as kind of like a deal that you'd be looking at adding to your portfolio right now when it comes to like adjacencies?

Yes. Let me enforce something from that perspective, Allen. It's a great question. Right now, our 2022 priorities are focused on digesting what we have in front of us, which is really completing the Bioness integration and that has gone extremely well and ahead of schedule, that will be completed in the first quarter, and then really completing and finishing the Misonix integration through the course of the year. M&A in the near term is not a focus for us because we know we need to get this done, including driving the double-digit growth that we expect as well as completing the CartiHeal acquisition through the course of the year. If we do any M&A, it would be an equity investment of some small size that gives a front-row seat in a strategic company that we'd be interested in acquiring down the road. And certainly, we did that last year with Trice Medical and Vaporox. Certainly could see something like that happening this year, but it will be fairly immaterial to the business. Would not take a lot of the management focus that we feel is required to drive our other 2022 priorities.

Okay. Looking at your legacy franchises, I suppose we could call it. Your HA business has done incredibly well. The pandemic has definitely been a tailwind for you when it comes to the transition to a single-injection HA, which it's clinically proven that you seem to have the best one. But when we think about trends normalizing in a post-COVID world, do you think you'll be able to kind of hold on to all that share that you've really gotten with your single-injection product? Or do you think there will be a move back to 3- and 5-injection? Or has this just kind of accelerated the natural shift that I would imagine has probably been a natural progression in this market towards single-injection therapies?

Yes. I think it's probably more of the latter, Allen, and it's accelerated a natural shift that's occurred. If you look at the evolution of hyaluronic acid going back to 2000, the past 22 years, it started with 5-injection products and then 3-injection products and then single-injection products. The reason 5-injection products are still out there is there's a lot of loyalty to them with people that have been using it since it was launched, like our SUPARTZ, in the early 2002. But it is slowly shrinking in favor of the 3-injection and the single-injection. And I don't see that momentum shifting. I think it's going to take longer than people realize for that shift to occur. But I don't see it shifting. As far as our market share gains, I see our market share, frankly, continuing to grow. We just launched DUROLANE in 2018. It's early in its life cycle. We've grabbed 20% of the market. We have the highest molecular weight technology in hyaluronic acid on the market today. The American Academy of Orthopedic Surgeons just had a good endorsement of hyaluronic acid, in particular the high molecular weight hyaluronic acid. So that speaks very well to our DUROLANE product. And certainly, with GELSYN, our 3-injection, we're also about 20% of that market, and we see us continuing to evolve there and grab more market share. Really, hyaluronic acid is about appealing to 3 key stakeholders: first of all, the orthopedic surgeon that makes the decision to use hyaluronic acid, the ancillary staff that gets involved with the billing as well as sometimes even the injecting of the hyaluronic acid and then the private payer. At Bioventus, we attack all 3, and we attack all 3 very aggressively with our broad portfolio in HA. And that's how we win, and that's how we see ourselves continuing to win in the market and grab market share in the HA market.

Moving on to bone graft substitutes. This is a market where you have a relatively smaller share position. I think what really makes your portfolio unique here is that, unlike most other products which are kind of associated with an implant, yours is a bit more hardware-agnostic, and that's really helped you compete. So how should we think about your share position going forward with that kind of unique competitive advantage, if you will? Have you seen any benefits from like new products, like OSTEOAMP Flowable? And how do you see new products really playing a role in the story here going forward?

Yes. Look, it's an exciting story for us. We're about 5% of the bone graft substitute market today. It's about a $77 million, $78 million product line for us in 2021. And I see our ability to double that over the course of the next several years and getting 10% of that market, although the market itself is growing around 8%. So that continues to be a tailwind for us as well. Being agnostic to the spinal hardware companies, I think, has really served us well because we can appeal to every surgeon and sometimes make whole hospital conversions, keeping in mind that the bone graft substitute line item on a budget is now separate from spinal hardware with most hospitals. So that serves us well. It allows us to really make that case, coupled with IDN contracting that we do fairly well also. As far as OSTEOAMP Flowable, that's been a huge success for us. It's gotten us into minimally invasive spine surgery, one of the few technologies that allows a surgeon to inject the bone graft substitute. It stays where it is even after irrigating before they close the surgical wound. This is particularly relevant and certainly has gained rapid market share. So we look forward to that further growth as we move forward. New product development is always on our mind in this area, and we certainly have the team in place from an R&D and product development, talent perspective to make that happen. So more to come on that, but we do see our product line continuing to evolve in bone graft substitutes as we move forward.

Apologies if I missed it, but did you provide any updates on the presentation on MOTYS and the Exogen bone study, anything to highlight there in the first quarter?

No updates. I would comment, though, Allen, with MOTYS, we are in a Phase II study, and we'll be following those patients, enrolling patients and following them, through the course of 2022. And then on the bone study, no real update there. We continue discussions with FDA as we move forward to try to expand indications for a greater number of fresh fractures for Exogen.

Okay. So just to close, it seems like there's clearly a lot going on within Bioventus. You have a lot of pipeline products, whether it be MOTYS, Agili-C, the TalisMann, PNS. You're integrating these deals. You're really looking to expand your international presence. So it feels like you have a lot of different shots on goal. But if you were to kind of leave a message for investors who are maybe looking to buy into the Bioventus story at the start of the year, what should they really be looking at? And what are you most excited for in the next 12 months or so?

Well, I would say that, look, we're excited to achieve the goals and priorities we have set out in 2022, starting with our double-digit growth across multiple levers in the company that will drive that and continue to make Bioventus a significant player in the markets that we compete in. We're going to serve over 600,000 patients this year which every minute, less than every minute, about every 50 seconds, a patient will benefit from one of our devices. We're very proud of that and very proud to see the expansion of our business and our culture and what we represent. So clearly, we're on a roll and we're excited about where we're going. But I would also say that 2022 is one of focus on the priorities that we have, completing our integrations, acquiring CartiHeal upon FDA approval and just the execution of what we have in front of us today.

Got it. Well, I think we're all really looking forward to it. Thank you so much for taking the time to speak to all of us today. Of course, thank you to everyone who dialed into the call, and I hope you all enjoy the rest of your week.

Thank you, Allen. Appreciate it very much.