Polynovo Ltd (ASX: PNV) shares have captured significant attention on Wednesday, as the medical device company’s stock surged 11% in morning trade to reach $1.36. This remarkable rise follows the release of its unaudited full-year update after the market closed on Tuesday, revealing substantial growth and positive financial performance.
Investors are eagerly acquiring shares of Polynovo, the company renowned for its innovative product, NovoSorb BTM, a dermal scaffold designed for dermis regeneration post-surgery, trauma, or burn. The financial update highlighted a 28.9% increase in group sales, reaching $118.6 million for FY 2025. This growth was driven by a 28.7% rise in U.S. sales to $88.4 million and a 29.6% increase in sales from the Rest of the World.
Financial Performance and Market Reaction
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY 2025 are projected to be between $11.2 million and $12.4 million, showcasing a substantial improvement from the $3.6 million recorded in the previous year. Additionally, Polynovo reported a positive cash flow from operations of $15.7 million in the second half, a significant turnaround from an outflow of $12.5 million in the first half. Consequently, the company’s cash and cash equivalents rose to $33.5 million by the end of June, up from $22 million at the end of March, even after accounting for capital expenditures and debt repayment.
Management Insights and Strategic Direction
Dr. Robyn Elliott, Polynovo’s acting CEO, expressed optimism about the company’s performance, stating,
The excellent FY25 results are an outcome of driving expansion of the NovoSorb BTM and MTX portfolios in line with our strategic plans to deliver superior growth. New regulatory filings continue to address geographic market expansion and clinical indications not covered by existing products. Additionally, we are focused on delivering new applications of PNV’s platform technology to ensure diversification and growth acceleration.
David Williams, the chair of Polynovo, echoed this sentiment, highlighting the company’s growth trajectory, particularly in the U.S. market. He noted,
I like to review the year and the go forward from a high level and all I see is growth and opportunity. In the U.S. I see additional U.S. staff being actively recruited and I see NovoSorb MTX growing strongly. The U.S. is the engine room, but the UK and other markets are also showing significant growth.
Future Outlook and Market Expansion
Looking ahead, Polynovo’s management remains confident in sustaining revenue growth both in the U.S. and internationally. The company has expanded its workforce to 89 field staff in the U.S., with plans to recruit an additional nine employees. This expansion has underpinned a 59% increase in U.S. sales orders and a 43% rise in units sold.
Moreover, Polynovo achieved record monthly commercial sales of A$12.8 million and record revenue of A$13.7 million in June, reinforcing its upward trajectory. The company anticipates further improvements in cash flow from operations in FY 2026, driven by ongoing profit momentum in key markets such as Australia, New Zealand, the UK, and the U.S.
As Polynovo continues to expand its market presence and product offerings, investors and industry analysts alike are closely monitoring its progress, particularly in light of its strategic initiatives and robust financial performance. The company’s commitment to innovation and market expansion positions it well for future growth.
