Polynovo Limited · ASX:PNV
Polynovo — FY2020 Earnings Presentation
18 slides from Polynovo's earnings presentation, Aug 26, 2020
Slide 1: PolyNovo FY20 Results
PolyNovo FY20 Results Highlights from Annual Report 26 August 2020
Slide 2: NovoSorb BTM Revenue
NovoSorb BTM Revenue • NovoSorb BTM sales revenue FY20 $19.1m • 104% increase YoY • Q4 BTM sales run rate $24m • US, Australia, New Zealand and DACH strong performers • Building solid revenue base in trauma, reconstructive surgery, hand surgery, necrotizing fasciitis and general surgery. • Burn sale
Slide 3: CoVid-19 Impacts
CoVid-19 Impacts • Minimal impact to date Products Sales - BTM $'000 • Sales continue to grow with a record second half and record June 2020 sales. • Active global digital marketing program proving effective 19,065 • Production continues with safeguards in place • Inventory build has buffer in local
Slide 4: BARDA Trial Program Revenue
BARDA Trial Program Revenue • Revenue from the trial program is down, as expected, due to: – Feasibility trial activity low given recruitment closed – Activity and therefore cost lower with data review, write up, FDA submissions etc. • $15m USD committed by BARDA for the pivotal trial • Planning act
Slide 5: Building Talent, Driving for the Future
Building Talent, Driving for the Future • Total employees in FY20 increased 59% from 47 to 78 – US sales and marketing team expansion to drive greater sales. Further expansion planned for FY21. – Australia/New Zealand expanded the sales and marketing teams as the volume of accounts and revenue has i
Slide 6: Capital Works – Capacity and Flexibility for the Future
Capital Works – Capacity and Flexibility for the Future • Cleanroom facility build for hernia device manufacturing complete – Commissioning, validation and commercial manufacturing will be the focus of FY21 – Stage 2 will occur in FY21 which is mainly installation of a HVAC air-conditioning system f
Slide 7: Inventory Status
Inventory Status • Full service 3PL warehouse facilities in: – US – New Zealand – Australia – England • All facilities stocked with inventory for sales ramp in H1 plus a CoVid safety buffer against production or logistics interruptions • We can service customers promptly in any region 7
Slide 8: FY20 Financial Results Review
FY20 Financial Results Review 8
Slide 9: FY20 Financial Results Review
FY20 Financial Results Review Total Revenue ($m) Highlights • BTM product sales +104% 19.1 • Total BTM sales $19.1m 9.3 • June qtr. BTM sales $5.9m (run rate of $24m) 1.7 4.0 3.8 1.0 3.1 0.4 0.1 BTM Product Sales 2018 2019 2020 Other BARDA Contract Revenue Product Sales - BTM • 2H up +87.5% on 1H •
Slide 10: FY20 Financial Results Review
FY20 Financial Results Review Operating Expenses ($m) Operating Expenses 22.6 (excludes changes in inventories & WIP) (excl. Share Based Payments) 16.2 • Operating Expenses +28.4% 12.2 • Continued investment in growth • Increase headcount by 66% from 47 to 78 • Entered new markets and expanded our r
Slide 11: FY20 Financial Results Review
FY20 Financial Results Review Net cash outflow from operations ($m) Cash on hand ($m) 13.9 2018 2019 2020 11.6 -0.4 -3.4 3.1 2018 2019 2020 -6.9 Highlights Capex ($m) 8.9 • Minimal cash burn from operations of -$427k • Cash burn trend improving 6.5 • $11.6m cash on hand • Capex investment for hernia
Slide 12: FY20 Financial Results Review
FY20 Financial Results Review ($m) FY20 FY19 Change P&L Highlights Revenue 22.2 14.4 54.6% • Product sales +104% • Revenue (incl. BARDA) +54.6% Expenses Changes in inventories & WIP (1.7) (1.3) 31.6% • Product sales gross margin +7.6% Operating Leases 0.0 (0.2) -100.0% • Employee related expenses +7
Slide 13: FY20 Financial Results Review
FY20 Financial Results Review FY20 Results Summary • More than doubled product sales 104% • Entered new markets successfully • Improved gross margin on product sales +7.6% • Minimal cash burn -$427k • $USD 15M BARDA funding secured • Cash on hand $11.65m • NAB debt facility $9.3m FY21 Observations •
Slide 14: New Product Pipeline
New Product Pipeline Research & Development 14
Slide 15: New Products – Imminent
New Products – Imminent • Addition of smaller sizes for chronic wounds US Alternate Care/ Community Market Hernia Devices – 2x2 cm • Unique sizes and shapes of NovoSorb BTM • Enter US market in FY22 – 5x5cm for the US Alternate care $400+m market • Stage 1 of cleanroom facility complete, • Additiona
Slide 16: New Products – Near Term
New Products – Near Term Breast Betacell Diabetes Treatment • Development will progress in parallel with hernia devices • The Adelaide group have completed further studies on now that the cleanroom production facility is built. Market stemcell derived islet cells for use in a NovoSorb BTM entry date
Slide 17: Business Outlook FY21 – Market Expansion
Business Outlook FY21 – Market Expansion • Continue our NovoSorb BTM revenue growth trajectory in established markets • Open major European markets in the year ahead with a mix of direct and distributor models, key markets France, Benalux, Scandinavia, Italy, Greece and others • Open Taiwan H2 • Kor
Slide 18: Business Outlook FY21 – Other Activities
Business Outlook FY21 – Other Activities • Expand the R&D team H1 to accelerate new product pipeline developments • Commence recruitment in Pivotal Trial (BARDA) H1 • Recruit patients in US chronic wound reimbursement study H1 • Complete validation and testing of Syntrel hernia device early H2 • Fil