Polynovo Limited · ASX:PNV
Polynovo — Investor Presentation (November 2022)
35 slides from Polynovo's investor presentation, Nov 22, 2022
Slide 1: Investor Presentation: Capital Accelerating Global Growth
Investor Presentation 22 November 2022 Capital Accelerating Global Growth
Slide 2: Important notice and disclaimers
Important notice and disclaimers The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting t
Slide 3: Important notice and disclaimers
Important notice and disclaimers You are strongly cautioned not to place undue reliance on forward-looking statements. Any such statements, opinions and estimates in this Presentation speak only as of the date of this Presentation and are based in assumptions and contingencies subject to change with
Slide 4: Important notice and disclaimers
Important notice and disclaimers Market and industry data Certain market and industry data used in connection with this Presentation may have been obtained from research, surveys or studies conducted by third parties, including industry or general publications. None of PolyNovo, its representatives
Slide 5: Important notice and disclaimers
Important notice and disclaimers Macquarie Capital (Australia) Limited ABN 79 123 199 548 and Bell Potter Securities Limited ABN 25 006 390 772 (Joint Lead Managers) are acting as joint lead managers to the Placement. The Joint Lead Managers, together with their respective related bodies corporate,
Slide 6: Equity raise to accelerate global growth
Equity raise to accelerate global growth • The business is currently performing well • PolyNovo is profitable in the key US market and is now looking to invest in and accelerate multiple new growth opportunities and a 5X increase in production capacity • Growth is expected to be delivered through fo
Slide 7: PolyNovo: Accelerating our growth
& PolyNovo: Accelerating our growth
Slide 8: Strong track record of execution, now to accelerate business momentum
Strong track record of execution, now to accelerate business momentum Track record delivering YoY revenue growth Achieving record sales Replicating successful expansion in new geographies globally ● First ever A$5m+ sales month in September, with $5.4m sales recorded, followed by over A$5m in Octobe
Slide 9: Multiple growth vectors for global growth
Multiple growth vectors for global growth Geographic New indications New Capacity expansion 01 expansion 02 for NovoSorb 03 products 04 to satisfy growth ● Core markets (Australia, US) to ● NovoSorb BTM is already a ● Investing in R&D capabilities to ● New co-located facility with provide expertise,
Slide 10: 1) Geographic expansion
1) Geographic expansion PolyNovo is actively building a commercial presence across newly launched markets including India, HK and Canada while preparing to launch into new potential markets Japan and China Europe India ● Total UKI headcount 9, up from ● Commercial headcount of 20 FTEs by last year 5
Slide 11: Geographic expansion (cont.)
Geographic expansion (cont.) Increased investment in commercial capability to support revenue momentum across different geographies FY20A FY21A FY22A In FY22A, PolyNovo added 46 staff across global markets Global customer accounts 196 293 428 Increasing headcount increases sales. September and Octob
Slide 12: Surgeon led innovation
Expanding indications and new products to drive growth and broaden customer base and sales pools 2) New indications of NovoSorb 3) Leveraging technology to deliver new products Established in wound care across key geographies, Implantables BARDA trial progressing ● Targeting the US$2.5bn hernia and
Slide 13: 4) Capacity expansion
4) Capacity expansion To support accelerating business momentum and significant demand, PolyNovo intends to build a third co-located manufacturing facility to increase production efficiency and capacity The new co-located facility is expected to dramatically increase scale and yield by incorporating
Slide 14: Details of the offer and timetable
Details of the offer and timetable 14
Slide 15: Equity Raising summary
Equity Raising summary • Non-underwritten equity raising of up to A$33.0m of new fully paid ordinary shares in the Company (“New Shares”) comprising: • Institutional Placement to sophisticated, professional and other institutional investors to raise up to A$30.0m (“Placement”) comprising of the issu
Slide 16: Use of proceeds
Use of proceeds Commentary Sources and uses Sources Up to A$m Geographic expansion Placement proceeds1 30.0 ● Additional commercial staff in US and expansion into Canada, Hong Director Placement proceeds2 3.0 Kong and India Total Sources 33.0 ● Investigating additional new markets, including Japan a
Slide 17: Indicative Equity Raising timetable
Indicative Equity Raising timetable Key Event Date1 Record Date for Eligibility to participate in SPP Monday, 21 November 2022 Trading Halt and announcement of Equity Raising Tuesday, 22 November 2022 Announcement of completion of Institutional Placement and trading halt lifted Wednesday, 23 Novembe
Slide 18: Appendix A: Overview of PolyNovo
Appendix A: Overview of PolyNovo 18
Slide 19: NovoSorb Polymer
NovoSorb® ® Polymer NovoSorb polymer A unique platform technology NovoSorb® ● Base polymer developed by the CSIRO (Australian Government research) and spun out as PolyNovo ● Unique polymer technology, Carbamate, that is programmable for reabsorbsion rate and product attributes. ● Excellent biocompat
Slide 20: BTM is in the regenerative dermal substitute market
BTM is in the regenerative dermal substitute market 01 Autograft Full thickness wounds Superficial / chronic wounds A graft of tissue from one location to Full thickness skin grafts are often another of the same individual's body. employed for full thickness burns Nil Typically not processed Integra
Slide 21: Current products
Product overview ● Bilayer biodegradable synthetic matrix used when the dermis has been lost or removed PolyNovo are targeting a number of ● Temporarily closes a wound and provides a scaffold for generation of a neodermis indications outside of burns, supported ● Indications are for full or deep par
Slide 22: When BTM is placed in a wound
When BTM is placed in a wound 1 NovoSorb BTM applied to debrided wound bed The wound is ‘physiologically closed’, limiting contraction and risk of infection. 2 NovoSorb BTM fully integrated Full thickness tissue deposited within the foam. Once integrated, the seal is ready for removal. 3 Sealing Mem
Slide 23: Addressable Markets - near term
Addressable Markets - near term NovoSorb BTM is currently on sale Dermal ● Unique biodegradable purely synthetic substitutes ● Market expansion for the use of dermal scaffolds USD 1.5B Pipeline development – a platform technology ● Hernia devices preparing for manufacturing scale up with Reconstruct
Slide 24: Appendix B: Key risks
24 Appendix B: Key risks & PolyNovo:
Slide 25: Risk factors
Risk factors RISK FACTORS As with any share investment, there are risks associated with an investment in the Company. The numerous risk factors are both of a specific and general nature. Some can be mitigated by the use of safeguards and appropriate systems and controls, but some are outside the con
Slide 26: Risk factors (cont.)
Risk factors (cont.) (c) Competition Risk The innovative medical devices market is highly competitive, and if PNV’s customers and partners are unable to compete effectively, by for example introducing comparable products, the Company’s results may suffer. PNV faces competition from companies through
Slide 27: Risk factors (cont.)
Risk factors (cont.) (f) Reliance on Key Customers A substantial portion of PNV’s revenue is derived from certain customers or customer groups both in Australia and overseas. The loss or impairment of any of these relationships for any reason, a material reduction in prices or deterioration in tradi
Slide 28: Risk factors (cont.)
Risk factors (cont.) (k) Access to Equity and Debt Funding Volatility in the financial markets could have a material adverse effect on PNV’s ability to equity or debt fund its business. PNV’s ability to raise additional funds will be subject to, among other things, factors beyond the control of the
Slide 29: Risk factors (cont.)
Risk factors (cont.) (p) Risk of Litigation, Claims and Disputes PNV is and may in the future be subject to litigation, claims and disputes in the course of its business, including competitor disputes, consumer disputes, supplier disputes, employment disputes, contractual disputes, disputes with gov
Slide 30: Risk factors (cont.)
Risk factors (cont.) 2 General Risks (a) Market and an investment in Shares The market price of PNV’s shares will fluctuate due to various factors, many of which are non-specific to PNV, including the number of potential buyers or sellers of PNV shares on the ASX at any given time, recommendations b
Slide 31: Appendix C: Selling restrictions
Appendix C: Selling restrictions 31
Slide 32: International Offer Restrictions
International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any
Slide 33: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) European Union This document has not been, and will not be, registered with or approved by any securities regulator in the European Union. Accordingly, this document may not be made available, nor may the New Shares be offered for sale, in the European Union
Slide 34: International Offer Restrictions (cont.)
International Offer Restrictions (cont.) Norway This document has not been approved by, or registered with, any Norwegian securities regulator under the Norwegian Securities Trading Act of 29 June 2007 no. 75. Accordingly, this document shall not be deemed to constitute an offer to the public in Nor
Slide 35: Slide 35