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PNV - POLYNOVO LIMITED


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Polynovo Ltd (ASX: PNV) share price closed at $2.10 yesterday âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ which caps off a huge run for the stock over the past week.

 

Last Thursday, PNV shares were going for $1.59 so yesterdayâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s closing price represents a 32.1% gain since then. Whatâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s more âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Polynovo hit a new all-time high this morning of $2.22 before pulling back to the end of day price. If you were lucky enough to buy PNV shares at the start of this year (at 60 cents), you would have tripled your money and then some!

 

Why has Polynovo been shooting the roof this week?

Well, it comes down to the earnings that Polynovo released last week covering the 2019 financial year (FY19). The company reported revenue of $13.68 million âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ a 128% increase from the previous year. The company still reported a loss, but at $3.2 million, it was 46.6% smaller than the previous year.

 

In a highly encouraging sign, sales of Polynovoâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s flagship product âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ Novosorb âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ increased by 435% compared to the previous year. NovoSorb is a synthetic polymer tissue that is used to treat severe burns and other skin ailments. The company claims that âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“surgeons continue to be impressed with the robust nature of NovoSorb BTM, evident by recurring and increasing salesâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ. During FY19, the company also gained approval to sell NovoSorb to the US Department of Defence and Veterans Affairs âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ another positive sign of momentum for the product.

 

Whatâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s next for Polynovo shares?

With this set of results, Polynovo has firmly cemented itself as a promising healthcare growth stock. In my opinion, the market has already factored in years of crushing revenue and earnings growth âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ evident by the fact that this is a loss-making company with revenues of $13.68 million, but with a market capitalisation of $1.39 billion on yesterdayâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s prices. To give the company credit, it has an ambitious pipeline of research and development projects (including hernia, ulcer and diabetes-related treatments) and aims to âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“transform from a dermal focused device company to a multi-focused medical device manufacturer and marketerâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ.

 

Polynovo is expecting to become profitable in FY120 while expanding both production and available markets....

- Motley Fool
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  • 2 months later...

Sohn stock pick: Regalâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Phil King - SHORT PolyNovo (PNV ASX)

Thereâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s a lot of expensive stocks out there and one only has to look at the ASX: If the FAANG stocks look toppy trading on a multiple of 5 times sales, what then to make of the Aussie tech stocks trading on 13 times?

 

Well, âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“the biggest bubble in the Australian stockmarket today is Australian biotech,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ King says, christening them the PPANCs (PolyNovo, Pro Medicus, Avita Medical, Nanosonics and Clinuvel.)

 

Regal is actually long Avita, but âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“we needed the vowelâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ. Healthcare stocks in Australia are prone to bubbles, King warns. We donâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t have the big pharmaceutical companies like Europe, and Australians arenâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢t that good at valuing them.

 

Passive investing has surely helped fuel the rally, as four out of five PPANC stocks have joined the ASX 200.

 

PolyNovo is singled out as having the most downside. âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“We think the competitionâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s well established, the companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s still losing money and itâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s never delivered on expectations,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ King says, adding: âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“thereâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s no room for disappointmentâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ.

 

Mark Twain once said a mining company is a hole in the ground with a liar on top.

 

An Australian biotech is a medical lab with a good salesperson on top.

 

Total short positions as at 18th November, 2019 = 1.76%

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  • 3 weeks later...

This news has arrested the persistent sell off .. up some 15 % and back to around $2.00

NovoSorb BTM has been granted a certificate of conformance (CE Mark) approval for sale throughout UK/Ireland and the European Union.

...with the horrific skin damage for the multiple victims of NZ ðŸÃ…â€â„¢ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€šÃ‚¹ eruption, I read there has been big calls for skin to be used in grafts...

https://www.abc.net.au/news/2019-12-12/arti...ictims/11793114

NovoSorb BTM has been approved for use in all full dermal loss procedures:

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Full thickness burns

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Trauma

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Reconstructive / wide excision surgery

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Revision of scar

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Venous leg Ulcers

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Diabetic foot ulcers

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Pressure injuries

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Any loss of dermis needing repair.

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  • 4 weeks later...
PolyNovo has said previously that it does not intend to issue quarterly financial statements.

 

However, the Company would like to give shareholders a sense of the ramp up and direction of sales. Accordingly, we inform the market that in December the Company had its first two-million-dollar month. The first one-million-dollar month was announced 2 May 2019, which gives some feel for the acceleration of sales in the US, Australia and New Zealand.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ Revenue from NovoSorb BTM sales, unaudited, for the month of December 2019 were just over $2M compared with $890k December 2018 (134% increase)

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚¢ H1 NovoSorb BTM revenues, unaudited, were $8.57M compared to $3.75M H1 FY19 (129% increase)

 

PolyNovoâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s CEO Paul Brennan said,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ We are pleased with the sales trend. However, as a word of caution sales will continue to be lumpy as new sales staff are added and new territories opened up and because of natural disasters such as fires and volcanoes.

 

The expansion of the US sales team is adding to the sales momentum and we expect to see further acceleration of sales as a result of increased in-territory sales and the wider territory coverage coming from new staff hires. We are appointing more salespeople in the US to drive revenue and we are still actively recruiting.âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ

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  • 1 month later...

nipper: Since your post in December 2019, the PNV share-price did increase to over A$ 3.00 !

However, now, with the overall 'carnage' in the markets, it has come back down quite a bit, of course.

Still believe that it may well be an excellent long-term hold. I am free-carried anyhow.

 

Wasabibarako

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  • 4 months later...

PolyNovo has received funding of $US15 million from the Biomedical Advanced Research and Development Authority (BARDA) to support the Pivotal trial program of NovoSorb BTM.

 

The trial will gather extensive data on the effectiveness of NovoSorb BTM in the treatment of full thickness burns and will allow PolyNovo to apply for premarket approval approval from the US Food and Drug Administration for this treatment indication. It is already approved for this treatment outside the US.

We appreciate BARDA’s ongoing commitment to NovoSorb BTM in funding this trial, said managing director Paul Brennan. Their substantial non-dilutive funding for this and other programs better enables PolyNovo to bring our innovative, life saving products to the US and the rest of the world.
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  • 3 months later...
  • 8 months later...

recent times have made it hard for PNV to grow .... but the company is getting runs on the board. Now trading around $2.40

 

 

Record US Turnover in June'21 and 4Q21, US Sales Team Increased to 36

 

Notwithstanding limited access to US hospitals and surgeons due to Covid, PolyNovo is experiencing increasing revenue momentum in the US and all other major markets. PolyNovo US reports more than 50 per cent of hospitals are now re engaging for business. At the same time, the US sales team has been expanded to 36 with 6 new staff trained in the last month. This will expand our geographic footprint and our ability to service recently signed Group Purchasing Organisations.

While FY21 BTM revenue growth of circa 34% is a good indicator of FY21 BTM financial performance, recent business fundamentals have significantly improved as follows:

• US BTM revenue in $US has grown 49% in FY21 over FY20.

• US 4Q21 BTM revenue is a record $US 4.9M compared with 4Q20 of $US 3.3M

• Record monthly BTM revenue of $A 3.3M in June '21

• FY21 Distributor revenue growth was 53% with strong increases in the DACH region (Germany, Switzerland, and Austria), further sales in South Africa and India, good first sales in Finland, Italy, and Taiwan.

They are concentrating on using their capital to get market share at the moment, rather than profit. Using cash for hiring of new sales staff, assisting surgeons with their first operation, marketing etc.

 

So they need to build up sales staff overseas. Covid has slowed them down (can not visit hospitals, lockdowns worldwide, less operations)

 

Once they are fully established, the marketing/sales costs can be reduced and the profits can flow. (?) Awaiting release of the other ranges, hernia / breast reconstruction etc.

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  • 5 months later...

after taking a tumble and halving , from $3.00 to $1.50, in 2021, PolyNovo has lifted 20% today when reporting higher sales out of the US, while the Rest of the World is flatlining.

Seems rather challenging. The company must recruit and send out sales staff to achieve success. The Chairman of PolyNovo, David Williams said:

Quote

While US sales are very encouraging, there is more to achieve as we still have new sales staff being onboarded and more staff to be employed. In addition, we are retraining existing staff to follow surgeon leads using the product in new indications. While the US is the engine room of our growth in the immediate future, there are many opportunities in the rest of the world where we are just starting out.

 

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