PNV - Polynovo Limited

[UMike]

Was really worried when the trading halt came due to pending Fanatical announcement. Up about 7% on the news.

ASX Announcement
NovoSorb® MTX First Sales and March 2023 $6m Revenue
As announced on 19 September 2022, PolyNovo received FDA 510(k) clearance for NovoSorb® MTX a major new product innovation for soft tissue regeneration. NovoSorb® MTX leverages the technology platform underpinning the clinical success of NovoSorb® BTM (“BTM”) and was developed to satisfy clinician demand for a product for use in indications where the sealing membrane is not required. With NovoSorb® MTX, the wound can be closed either with a subsequent skin graft or allowed to heal through secondary intention. This can simplify wound management and presents wider applications for common wound healing problems.
......
$6m Revenue Month
• Monthly revenue (unaudited) including BARDA in March 2023 of A$6.4m up 48.2% on STLY of A$4.3m. Record BTM sales of A$5.45m.
• Sales revenue (unaudited) for 9 months to 31 March 2023 of A$41.1m up 49.8% on STLY of A$27.4m. Total revenue (unaudited) for the 9 months to 31 March 2023 of A$45.2m up 47.8% on STLY of A$30.6m

 

[Dona Ferentes]

and again ... trading halt is requested in respect of finalising an announcement on revenue performance


April saw accelerating growth and a record $6 million in monthly sales. It is speculated that sales in May topped $7 million, as PolyNovo benefited from a product recall enforced on competitor Integra Lifesciences.

 

[UMike]

PolyNovo's record May sales​

VALERINA CHANGARATHIL
Biotech giant PolyNovo has returned from a trading halt with good news for investors – a record monthly sales result of $7.2m (unaudited) for May.
The boost in sales came as a result of a 95 per cent boost in the US market to $5.2m, while the rest of the world recorded sales of $1.9m, up 189.3 per cent. Total unaudited revenue, including BARDA (US Biomedical Advanced Research and Development Authority revenue), for 11 months to May 31 is $59.1m, an increase of 54.5 per cent on the corresponding period's result of $38.3m.
PolyNovo has developed a synthetic skin for burns and soft-tissue regeneration, which in recent years has been used to treat Australian bushfire and New Zealand volcano victims.
"There is a lot to like about our growth," chairman David Williams said. "Some additional colour in the numbers is that sales YTD May 2023 in Canada were $1.3m, sales to 2 of the 4 major hospitals in Hong Kong with a third evaluating, a significant first sale to the Middle East, sales to more than 15 customers in India and additional sales of NovoSorb MTX in the U.S." Shares in the $1bn business last at $1.46.

Slow and steady now she goes.

 

[galumay]

Always a red flag when management release market updates that only mention revenue, you will almost always find it means they are not scaling and losses continue, or even increase.

 

[mullokintyre]

I am taking PNV as my speccy for the January 2024 compettion, mainly based on it getting a mention in the Australian.
Mick

 

[UMike]

Slow and steady I think is the stock.
Great product. Surgeons give it a wrap.

But like @galumay keeps alluding to, Need to make sure it is a profitable enterprise.

I'll probably pick it for one of the Years outperformers.

 

[mullokintyre]

Slow and steady I think is the stock.
Great product. Surgeons give it a wrap.

But like @galumay keeps alluding to, Need to make sure it is a profitable enterprise.

I'll probably pick it for one of the Years outperformers.

I also first heard about it from a surgeon, who was singing its praises.
He was of the opinion that the company will be taken out by some one in the USA.
Mick

 

[UMike]

I herd it was gonna be the next CSL 2.5 years ago.

I owned a restaurant so I did ask how much salt he was gonna take with it.

 

[galumay]

PNV at it again, a trading update full of bullsh*t earnings numbers, (adjusted EBITDA etc.), while NPAT is mentioned the number is not provided so my guess is its almost nothing. Meanwhile, CEO is more excited by things other than profit, that should scare the hell out of any potential investors! A further red flag is the use of the dreaded term "flywheel effect"!

 

[rcm617]

I invested in one of his other stocks MVP a couple of years ago, it shot up nicely for a few years as it showed plenty of potential, but it then went down badly when he couldn't make the company profitable. Makes me a bit reluctant to enter this one.

 

[Knobby22]

PNV at it again, a trading update full of bullsh*t earnings numbers, (adjusted EBITDA etc.), while NPAT is mentioned the number is not provided so my guess is its almost nothing. Meanwhile, CEO is more excited by things other than profit, that should scare the hell out of any potential investors! A further red flag is the use of the dreaded term "flywheel effect"!

View attachment 169312

Note, though, being used in the war zones, and continually taking market share.
Sure profit is small but it is growing.
Don't write this baby off. All companies start small and they control the manufacturing process which is operating now.
Maybe I should have picked it for this years competition.

Remember Charlie Munger convinced Buffett to invest heavily in BYD in the early days and that has paid off big time though it took 10 years.

 

[InsvestoBoy]

Remember Charlie Munger convinced Buffett to invest heavily in BYD in the early days and that has paid off big time though it took 10 years.

I don't want to derail the thread but wanted to thank you for mentioning this because it made me search for a bit more info and stumbled across this absolute gem from Munger

Munger says BYD success vs. Tesla is ‘almost ridiculous’

Berkshire Hathaway bought a stake in BYD—now the world’s top-selling EV brand—in 2008.

fortune.com

Munger downplayed his involvement in BYD’s success on Wednesday. “We tried to talk [Wang] out of doing what worked so well, which shows that there’s some accident in life,” he said.

 

[peter2]

LOL, @galumay. The market liked the 1H24 marketing news producing a HVBB (high volume bullish bar) on the daily chart.

Meanwhile the Chairman is getting excited by the rising revenue and views profit as a "nice of have".
The CEO, Swami, is excited by the potential flywheel impact.

They don't make fundamental news releases like they used to.

 

[galumay]

Remember Charlie Munger convinced Buffett to invest heavily in BYD in the early days and that has paid off big time though it took 10 years.

This is no BYD though. Its a great product and hopefully there is a viable business long term, but up until now its been all narrative speculation as the financials have been appalling. The promotional nature of management doesnt help the optics either.

(If it takes 10 years I doubt there will be any of the spruikers of this one still with skin in the game!)

They don't make fundamental news releases like they used to.

Tru dat.

 

[Sean K]

Looks like the market liked the 1H24 Trading Result @UMike Good start to the year.

 

[UMike]

Looks like the market liked the 1H24 Trading Result @UMike Good start to the year.

View attachment 169547

Yea. Did the exact same thing this time last year. (before a huge drop off.)
(Remember they had a large (massively scaled back) SPP @$1.9 in December)
Hope it keeps the momentum.

 

[galumay]

Truly shows how disconnected these stonks are from financials! Bad news, price goes up!!

 

[UMike]

Looking a bit toppy?????

1H24 Results out 27/2/2024 ...... Sell before the fact?

Thinking of swapping some capital for WDS or Santos

 

[mullokintyre]

Looking a bit toppy?????

1H24 Results out 27/2/2024 ...... Sell before the fact?

Thinking of swapping some capital for WDS or SantosView attachment 171326

As they say, no one ever went broke taking a profit.
Mick

 

[Knobby22]

As they say, no one ever went broke taking a profit.
Mick

$2 today? First profit announced. I sold some also but still own a few.