Polynovo Limited · ASX:PNV
Polynovo — H1 FY21 Earnings Presentation
20 slides from Polynovo's earnings presentation, Feb 23, 2021
Slide 1: PolyNovo H1 FY21 Results
PolyNovo H1 FY21 Results Summary points 23 February 2021
Slide 2: Top line H1 FY'21
Top line H1 FY’21 • NovoSorb BTM sales $11.25m 31.2% – USA BTM sales H1 FY21 41% on H1 FY20 (in $USD) • BARDA revenue $1.35m • Total Revenue $12.80m 25.3% • NPAT is ($0.87m) excluding share-based payments and unrealised forex loss. Net Profit After Tax (NPAT) ($3.54m) • Research &Development expendi
Slide 3: Highlights of H1
Highlights of H1 • Signing 22 new customers in US during CoVid challenges • Sales Germany/Austria/Switzerland, 30 accounts and a further 30 evaluations in progress • Continued strong webinar referrals, new account evaluations • First 2 US GPOs and 1 IDN signed, further agreements in process • Dr Ant
Slide 4: H1 Geographic Expansion, Market access
H1 Geographic Expansion, Market access Distributors appointed in o Finland – September’20 o Taiwan –October ‘20 o Belgium, Netherlands, Luxemburg (Benelux) – November ‘20 o Greece – November ‘20 Post-H1 • Turkey – January ‘21 • Poland – January ‘21 • Italy - February ‘21 4
Slide 5: CoVid challenges
CoVid challenges Sales / Marketing Innovations
Slide 6: CoVid-19 Impacts
CoVid-19 Impacts Revenues have been lumpy with reduced access and reduced elective surgery in all regions Logistics, some increase in cost and workload to schedule however maintaining all supply routes, holding high inventory levels Markets • Reduced elective surgeries extends evaluation periods in
Slide 7: BARDA Trial Program Revenue
BARDA Trial Program Revenue • IDE approval • Delay pushed out revenue and expenditure • Forecast revenues H2 from increased activity will range $2-$2.5M AUD • FY ’22 increased patient activity and further sites added expected to be $5+M AUD • First five sites will be ready to recruit patients end of
Slide 8: Building Talent, Driving for the Future
Building Talent, Driving for the Future • Total employees at February 92 compared with 78 June 2020 – Investing in roles that drive expansion COO, Head of R&D, Marketing roles in product development, further development scientist – US sales and marketing team expansion will continue in response to n
Slide 9: Capital Works – Capacity and Flexibility for the Future
Capital Works – Capacity and Flexibility for the Future • Final factory area for Film extrusion will be Inside new cleanroom facility: finished in March ‘21 continuous foam cutting machine • Extrusion machines housed at Scoresby will be brought to Port Melbourne post hernia production product run, c
Slide 10: Inventory Status
Inventory Status • Full service 3PL warehouse facilities in: – US – New Zealand – Australia – England • All facilities well stocked with inventory to address forward demand expectations and sales targets • We can service customers promptly in any region 10
Slide 11: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review 11
Slide 12: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review Highlights Total Revenue ($m) 0.2 1.4 • BTM product sales +31% on H1 FY20 0.0 • Total BTM sales $11.25m 1.6 • Total Revenue $12.80m 0.5 11.2 1.9 • Sales impacted by Covid-19 with restricted access to hospitals and surgeons, 8.6 and a reduction in elective surgery 3.8
Slide 13: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review Operating Loss ($m) (excl. interest costs and non-cash items of share based Operating Loss payments, unrealised loss on forex and depreciation) • Operating loss down -78.9% H1 FY19 H1 FY20 H1 FY21 • Revenue growth, gross margin improvement and cost management (0.2) h
Slide 14: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review Net cash outflow from operations ($m) Cash on hand ($m) 11.6 1H FY19 1H FY20 1H FY21 8.1 7.7 (1.4) (2.2) (2.2) 31 Dec 19 30 June 20 31 Dec 20 3.5 Highlights Capex ($m) • Cash burn from operations of -$1.4m 2.4 • Cash burn trend improving • $7.7m cash on hand 1.5 • Ca
Slide 15: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review ($m) 1H FY21 1H FY20 Change % P&L Highlights Revenue 12.8 10.2 25.3% • Product sales +31.2% Expenses • Revenue (incl. BARDA) +25.3% Changes in inventories & WIP (0.8) (0.9) -16.6% Employee-related expenses (7.8) (5.9) 32.6% • Product sales gross margin +3.9% R&D Cost
Slide 16: H1 FY21 Financial Results Review
H1 FY21 Financial Results Review • Product sales growth 31.2% • Entered new markets successfully • 109 new accounts opened in CY20 (89% growth on CY19) • Strong platform growth during a pandemic evident by significant account acquisition • Improved gross margin on product sales +3.9% • Improved unde
Slide 17: New Product Pipeline
New Product Pipeline Research & Development 17
Slide 18: New Product Development - update
New Product Development -update Hernia Devices • Factory complete end March • Film extrusion unique NovoSorb polymer film that is 100% resorbable • Ultrasonically welded film/foam construct • Production capability achieved • Looking at additional product configurations for faster route to market • L
Slide 19: New Products
New Products • Addition of smaller sizes for chronic US Alternate Care/ Community Market Plastics and Reconstructive Device wounds • Development brought in house. – 2x2 cm • Unique sizes and shapes of NovoSorb BTM for the US Alternate care $400+m market • Employed dedicated marketing resource – 5x5c
Slide 20: H2 Activities
H2 Activities Lumpy sales anticipated with restart of elective surgery across the regions being difficult to project. FY’21 – Other Activities • Expand the R&D team to accelerate new product pipeline developments • Enrolment of patients in Pivotal Trial (BARDA) • Recruitment of patients in US chroni