Bioventus Inc. reported $123.9 million in sales, down 4% from last year, but cut its losses almost in half for the quarter ending March 31, 2025. The revenue came in slightly higher than analysts’ estimates.
Bioventus’ Cut Losses 46%, Organic Sales Up 5%
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" data-large-file="https://i0.wp.com/ryortho.com/wp-content/uploads/2025/05/Bioventus-Cut-Losses-46-Organic-Sales-Up-5.png?fit=1024%2C445&ssl=1" src="https://i0.wp.com/ryortho.com/wp-content/uploads/2025/05/Bioventus-Cut-Losses-46-Organic-Sales-Up-5.png?resize=1024%2C445&ssl=1" alt="">Source: RRY Publications LLC
Bioventus Reports Solid First Quarter for 2025
Bioventus’ s leadership team, President and CEO Rob Claypoole and Senior Vice President and CFO Mark Singleton, reported on first quarter 2025 earnings on a recent call with analysts.
Claypoole said, “I’m pleased to report that the first quarter of the Bioventus team continued to successfully execute our plan, maintain strong momentum and delivered yet another quarter of solid financial results as we hope patients recover so they can live life to the fullest.”
He said, first quarter revenue of $123.9 million was in line with internal expectations and reflected above-market organic growth of 5%—key word “organic.” On a reported basis, sales were down 4.31%.
He added, “Even with increased uncertainty in the macro environment, we do not see a material impact from tariffs at this time, and we remain well positioned for a second half acceleration in our growth with a strong focus on disciplined execution across the entire Bioventus organization.”
Claypoole kept full year sales and earnings guidance unchanged from the start of 2025.
Singleton reported that the first quarter revenue declined 4%, reflecting the impact of the advanced rehabilitation divestiture at the end of last year. Adjusting for the divestiture, organic growth was 5% with solid growth across all three businesses.
Surgical Solutions revenue grew by 7%, driven by strong double-digit growth in Ultrasonics with capital sales in the U.S., up by more than 50% compared to the prior year. Bone graft substitutes’ growth slowed but is expected to accelerate in the second half of the year due to recently added distributors.
In pain treatments, revenue increased 4% compared to the prior year. Singelton said this was due to certain distributors buying less this quarter following higher purchases at the end of last year.
He added that the divestiture of their advanced rehabilitation business resulted in a 35% decline in revenue in restorative therapies.
In addition, revenue from the international segment declined 12% compared to the prior year, while organic growth was 1%.
Singleton explained, “While we continue to closely monitor the macro environment for any signs of deviations of medical procedural volume and changing tariff landscape, at this time, we believe the anticipated impact is minimal and manageable.”
Analysts Concerned About Continued Revenue Growth
Chase Knickerbocker with Craig Hallum asked for further clarification on the pain market, particularly between single and double injections.
Claypoole said, “We continue to see a shift from multi-injection to single-injection in this space. And from our perspective, that’s fine for a few different reasons. We have a really strong clinical value proposition with DUROLANE and strong contract backbone. And those two combined with our dedicated commercial organization we’re driving good growth in that space, again, double-digit growth in the first quarter, also carries a higher profitability for us in the single-injection space.”
Knickerbocker also asked about how potential pharmaceutical tariffs will impact them.
Claypoole said that right now pharmaceuticals are excluded from tariffs, but they continue to monitor the changing environment and are planning for differing scenarios.
He said, “Right now, we’re focused more on what we can control, which is a lot, like growing above the market and expanding our profitability and increasing our cash flow. So, if something changes in that area, we’ll be sure to talk to you about it.”
Robbie Marcus with JPMorgan asked about the level of confidence they have for an acceleration of growth in 2Q through 4Q.
Singleton said that from a seasonality perspective the second quarter is usually a big quarter for them. They also had substantial account wins recently.
Claypoole added that double-digit growth in DUROLANE and Ultrasonics, and almost double-digit growth in Exogen in the U.S. are key focus areas for them.
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This is a fascinating development. In my practice we've seen similar outcomes with the revised protocol. The key differentiator seems to be patient selection criteria. Has anyone else noticed the correlation with BMI thresholds?
Great point. I'd push back slightly on the conclusion, the sample size in the cited study is too small to draw population-level inferences. That said, the directional signal is compelling and worth a larger RCT.
We implemented a similar approach last year. Early results are promising but we're still gathering 12-month follow-up data. Happy to share our protocol if anyone is interested.
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