Polynovo Limited · ASX:PNV
Polynovo — H1 2022 Earnings Presentation
20 slides from Polynovo's earnings presentation, Feb 25, 2022
Slide 1: PolyNovo 1H22 Results
PolyNovo 1H22 Results 25 February 2022
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by PolyNovo Limited and is provided for general information purposes only. No party other than PolyNovo has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or undertakings in this pr
Slide 3: Trading Overview
Trading Overview First ever $3m BTM sales month (Dec 2021: $3,791,952) First ever $4m BTM sales month (Jan 2022: $4,051,542) 1st Half Total Group Revenue * 18,154,456 12,796,363 10,212,646 6,204,113 3,106,195 1H18 1H19 1H20 1H21 1H22 • Includes BTM product sales, BARDA contract revenue and Other
Slide 4: Trading Overview – Investing for Growth
Trading Overview – Investing for Growth • Investing in sales & marketing teams • Investing in R&D team for product innovation and commercialisation 1st Half Group BTM Sales ($AUD) Sales Staff Headcount US Sales ANZ Sales UKI SG Sales 16,272,666 1 4 4 11,249,722 1 4 8,571,640 4 40 3,750,728 1 3 26 86
Slide 5: Marketing and Sales
Marketing and Sales Highlights by region
Slide 6: Highlights 1H22 USA
Highlights 1H22 USA Strong Sales Growth • 1H22 BTM sales of AU$14.2m up 58% on same time last year • BTM sales for December were a record $AU3.4m up 76% on same time last year • Monthly US sales for December significantly exceeded US$2m for the first time • Strong quarter on quarter momentum with Q2
Slide 7: Highlights 1H22 Australia/New Zealand
Highlights 1H22 Australia/New Zealand • Long lockdowns in 1H22 and cancelled elective surgery • Strong recovery in Q3 with lockdowns lifted, January 2022 sales 6.5% above target and 72.5% up on January last year • Return to in person meetings and attendance at conferences • Large repeat customer bas
Slide 8: Highlights 1H22 UK/Ireland
Highlights 1H22 UK/Ireland • 1H22 sales of $369k up 254.6% on same time last year but less than target • 1H22 sales impacted by Omicron, restricting hospital access and cancellation of surgeries • Customer engagement maintained by digital and offsite meetings, resulting in strong account acquisition
Slide 9: Highlights 1H22 Distributor Markets
Highlights 1H22 Distributor Markets • Sales growth to distributors in 1H22 was flat compared to same time last year • Omicron impacted Italy and the DACH region (Germany, Austria & Switzerland) • Some markets such as Finland experienced reoccurring strong sales • First sales to Denmark and Cyprus in
Slide 10: New Products
New Products Matrix • Broad applicability for single-stage grafting in burns, chronic, surgical and deep tunnelling wounds to provide increased treatment options and better outcomes • Total addressable US market comprising in and out-patient settings of US$750m • Product comprises of BTM foam only w
Slide 11: New Products
New Products • Expanded approach to hernia market • In the process of validating 4 design options for various hernia types • The 4 designs are being developed simultaneously • Expect to have more than one product • We anticipate filing for FDA clearance in CY24 • The project to develop products to a
Slide 12: Clinical Trials - BARDA Pivotal Trial
Clinical Trials - BARDA Pivotal Trial • Pivotal trial is open for recruitment, screening of eligible patients in progress • During 1H22 5 patients were recruited, and this has increased to 10 • 25 US sites and 5 Canadian sites being enrolled, and we expect patient recruitment to increase as more sit
Slide 13: Clinical Trials – SynPath DFU Chronic Wound
Clinical Trials – SynPath DFU Chronic Wound • 10-patient diabetic foot ulcer (DFU) pilot study has been completed with SynPath applied to chronic wounds between 1 to 25 cm2 • Mean time to closure was 6.25 weeks, with the fastest being 2 weeks • 7 out of 10 ulcers had complete wound closure at 12 wee
Slide 14: 1H22 Financial Results Review
1H22 Financial Results Review 14
Slide 15: 1H22 Financial Results Review
1H22 Financial Results Review Total Revenue ($m) Group Highlights 1.8 • Total revenue +41.9% • BTM product sales +44.6% 1.4 • Total BTM product sales $16.3m 1.6 • Record monthly BTM product sales: 16.3 1.9 11.2 8.6 3.8 $3.79m (Dec 2021) H1 FY19 H1 FY20 H1 FY21 H1 FY22 $4.05m (Jan 2022) BTM Produ
Slide 16: 1H22 Financial Results Review
1H22 Financial Results Review Operating Expenses ($m) Operating Expenses (excl. Share Based Payments & Unrealised Forex) (excl. Share based payments, unrealised forex loss) 19.7 • Operating Expenses +53% • Continued investment in growth 12.9 • Increase headcount by 34% from 91 to 122 10.7 7.1 • Annu
Slide 17: 1H22 Financial Results Review
1H22 Financial Results Review Net cash flow from operations ($m) Cash on hand ($m) Capex ($m) 11.6 3.5 H1 FY19 FY19 H1 FY20 H1 FY21 H1 FY22 8.1 7.7 2.4 (1.4) 3.3 0.8 (2.2) (2.2) 0.1 0.2 (3.3) 31 Dec 19 30 June 20 31 Dec 20 31 Dec 21 H1 FY19 H1 FY20 H1 FY21 H1 FY22 H2 FY22 - Forecast Subsequent Event
Slide 18: 1H22 Financial Results Review
1H22 Financial Results Review ($m) Change % 1H FY22 1H FY21 P&L Highlights Revenue 18.2 12.8 41.9% • Product sales +44.6% Expenses Changes in inventories & WIP (0.9) (0.8) 12.2% • Revenue (incl. BARDA) +41.9% Employee-related expenses (11.4) (7.8) 45.3% R&D Costs (2.4) (1.3) 86.3% • Product sales gr
Slide 19: Focus Points 2H22 & FY23
Focus Points 2H22 & FY23 • Increase sales teams to intensify sales effort in direct markets • Optimise distributor model and emerging markets model • Expand geographic footprint • Expand Key Opinion Leader program (especially UK & EU) • Focus on product development and faster commercialisation 19
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