Bioventus Inc. (NASDAQ: BVS)
NEW YORK, NY – January 25, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Middle District of North Carolina on behalf of investors who purchased or otherwise acquired Bioventus Inc. (NASDAQ: BVS) between February 8, 2021 and November 21, 2022, inclusive (the “Class Period).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at firstname.lastname@example.org or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than March 13, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
Bioventus is a medical device company that develops and commercializes clinical treatments to enhance the body’s natural healing process. The Company offers pain treatments, surgical solutions, ultrasonic medical devices, and restorative therapies. On February 11, 2021, Bioventus conducted an Initial Public Offering (“IPO”), issuing 8 million shares of its Class A common stock at $13.00 per share.
Throughout the Class Period, Defendants made materially false and misleading and/or failed to disclose that:
- Bioventus suffered from significant liquidity issues;
- the Company’s rebate practices were unsustainable;
- Defendants overstated the Company’s business and financial prospects;
- Bioventus maintained deficient disclosure controls and procedures and internal control over financial reporting with respect to the timely recognition of quarterly rebates; and
- all the foregoing increased the risk that the Company would be forced to recognize a significant non-cash impairment charge, could not timely file one or more of its financial reports, would have to amend one or more of its financial statements, and could not meet its financial obligations as they came due.
The Offering Documents highlighted “several key strengths that provide a competitive advantage” including “robust free cash flow conversion” and that that it “will continue to be well-positioned in the market given our strong foundation for reimbursement and customer access.”
It went on to state that “Our attractive cash generation has and will continue to allow us to expand our deep pipeline of products.”
In the March 26, 2021 10-K filing for fiscal year 2020, it stated that “[w]e believe that our existing cash and cash equivalents, borrowing capacity under our revolving credit facility, cash flow from operations, and net proceeds from our IPO will be enough to meet our anticipated cash requirements for at least the next twelve months.” They also downplayed the negative impact that rebates were having on the Company’s cash flow, stating: “Cash flows from operating activities increased $29. 7 million during the year ended December 31, 2020 due to collections on accounts receivables staying strong while selling, general and administrative expenses declined, partially offset by the timing of rebate payments.”
On November 16, 2022, Bioventus issued a press release announcing that it could not timely file its quarterly report for third quarter of 2022 because “of the recent decline in the Company’s market capitalization subsequent to its previously announced financial results for the third quarter of 2022,” which resulted in the Company needing “additional time … to assess whether a non-cash impairment charge is required for the third quarter of 2022.”
Bioventus also revealed that it “is seeking resolution related to the validity of a revised invoice” for certain rebate claims and that “[t]he recognition of additional rebates may impact Bioventus’ recently announced revenue guidance.” In addition, Bioventus disclosed that “its internal controls related to the timely recognition of quarterly rebates were inadequate specifically for the period ended October 1, 2022” and that the Company “is also evaluating whether [it] will be able to meet all of its financial obligations as they come due within one year after the date its financial statements for the period ended October 1, 2022, are issued.”
On this news, Bioventus’s stock price fell $1.00 per share, or 33.67%, to close at $1.97 per share on November 17, 2022.
Then, on November 21, 2022, Bioventus issued a press release announcing revised third quarter 2022 results to account for “additional rebate claims related to certain of the Company’s products and a non-cash impairment charge” that amounted to $189.2 million “due to the recent decline in our market capitalization subsequent to our previously announced financial results.” On that same day, Bioventus belatedly filed its quarterly report for the third quarter of 2022, advising of various changes to Bioventus’ s historical practices that were necessary to account for rebates, stating that these changes materially impacted the Company’s evaluation of its ability to meet debt covenants, resulting in liquidity and going concern disclosures.
On this news, Bioventus’s stock price fell $0.07 per share, or 3.72%, to close at $1.81 per share on November 22, 2022, representing a total decline of 86.08% from the $13 IPO price.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at email@example.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Tel: (800) 575-0735 or (212) 545-4774
Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 02/03/2023