PolyNovo Limited (ASX: PNV) is an ASX listed healthcare company based in Melbourne, Australia. The company specialises in developing and manufacturing unique biodegradable polymers which are used in medical devices. Biodegradable Temporising Matrix (BTM) is a product of the company, which provides an innovative wound dressing, aiming at the treatment of full-thickness wounds and burns. PNV aims to provide innovative regenerative products for hernia repair, surgical wounds, orthopaedics, burns etc.
Issue of unlisted options
On 3 May 2019, the company announced that it is issuing 1 million unlisted options to Kevin Whiteley, Vice President of PolyNovo North America LLC effective 18 April 2019. The unlisted options will be issued for no consideration, and $0.75 is the exercise price of the options. The unlisted options were issued to an employee as an incentive by the company.
Million Dollar Revenue
On 2 May 2019, the company announced that it had held an annual general meeting in November last year. The chairman, Mr David Williams addressed the shareholders and stated at that time that company cost base, a million-dollar revenue per month was a rough indicator that the company was at or close to break-even.
The company had said, that it did not intend to issue a quarterly financial statement but would inform its shareholders that the company had achieved its first million-dollar month.
Further, the company announced that in the month of April 2019, it was able to surpass $1 million, an increase of more than 300% compared to the previous corresponding period (pcp) revenue of $321,363.
The revenue from sales in Australia and New Zealand were more than $1M year to date (YTD) whereas the revenue in YTD April 2018 was reported at $66,048.
Key personnel’s statement
Mr Paul Brennan, CEO of the company, said the company is excited by achieving the million-dollar mark, but it continues to focus on direct market penetration in the US, and elsewhere with sales team driving the expansion of its hospital customer base. The company is also expecting EU approval soon to expand its global presence.
Mr David Williams, Chairman of the company, said that the sales were still uneven, though new customers were joining in. Also, the business is steadily growing which would increase the predictability in the month to month revenues of the company.
1HFY19 financial performance
In the recent 1HFY19 results, the company posted total revenue of $5.67 million and net loss for the period stood at $1.92 million including employee-related expenses of $3.65 million. The loss per share had decreased from 0.54 cents per share (cps) 1HFY18 to 0.29 cps in 1HFY19.
On the balance sheet front, the total assets decreased from $29.82 million in 2HFY18 to $28.73 million in 1HFY19. Total liabilities increased from $1.36 million to $1.69 million in the same period.
The market capitalisation of the company is A$707.36 million. The 52-week high and low of the stock is A$1.16 and A$0.455 respectively. The stock of the company is currently trading flat at A$1.080, up by 0.935% (as on 3 May 2019, 3:44 PM AEST).
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