Hi all...see my notes below from today's AGM.
Onwards and upwards. PNV to be a market leader it this space, long term buy and/or hold IMO.
------------------------------------------------
Polynovo 2021 AGM
26.10.2021
David Williams
·Script largely on par with Chairman’s address ASX announcement
·Quite a bit of time analysing sp gains/retracements over last 12 months
Paul Brennan
·Revenue June, July August strong.Sept a bit softer.Number of purchase orders significantly growing. 131 purchase orders in Sept.
·Smaller sheet orders 53% of sales.Large sheets now 47%.Encouraging because volume of sales of smaller sheets is larger
·US business Covid impact significant, yet sales up 49%.Now internally tracking GPO vs CRM activity
·DFU Trial.Surgeons very excited about this product.Meet goal of reimbursement submissions in advance of 2024
·BARDA.Still anticipate 3yrs
·Continued growth in NZ despite lockdowns
·Aust still seeing significant growth, despite lockdowns.Spectacular addition to account acquisitions in NSW in particular
·Singapore.High use of chronic and acute elective surgery use.Surgeons on the cusp of publishing on their use of BTM in the last 12 months.Not a large market for burns
·Taiwan.Great opportunity for chronic wound 5x5 product (as is Ireland, India, Germany)
·India, working with other distributors in south to augment and accelerate business
·Other markets.Cyprus, Czechoslovakia, some others working on
·Distributor sales up 21%.Life in Europe now relatively normal, face-to-face trade shows etc…should lead to further expansion eg spain and Portugal
·Manufacturing facility in PM now completed and fully validated.Hasn’t been an easy process. Now manufacturing finished goods.
·R&D pipeline.Syntrell now being used in pig study.Not a straightforward process, look at performance in a clinical setting in terms of their use and misuse…lead to improvement in design and potentially new products.Employed a dedicated marketer and establishing an advisory board.More detail to come at ½ yr update
·Beta cell.Trial to start within next two months.Funding is secured
·Foam…no sealing membrane…early days of this project, but very exciting
Questions.
Target budget annual revenue for FY22.
Jan (CFO).No disclosure as such.In terms of growth, significant uplift from FY21.
More details about timeline and sales etc for DFU trial.
Paul.100 patients, takes 7 months.Sept 2022.Write up of studies etc, then submitted to insurers. Have to have data in by Oct, so trying to do this before Oct 2022.Nine insurers, so reality could be anywhere in 2023 we could achievement reimbursement sales.Up to insurance companies, hopefully 2023, but definitely 2024.
Product margins
Jan. Expect margins to remain the same.Some price increases in USA, our biggest market.Distributor margins slightly smaller. Likely to remain in low 90’s %.
Paul, looking at efficiencies, productivity etc.Could achieve significant volume growth out of existing infrastructure.Solid and progressive business.ESG…anticipating being carbon neutral by Christmas.
Traction of GPO sales
Paul.Dashboards set up to track sales.Account acquisitions continue throughout GPO networks. More staff going in to manage GPO activities.
18month Delay of hernia product
Paul.Covered at half hr. Validated machine required manufacture product. Significant delays due to covid
BARDA trial commercial
Paul.Upside is bragging rights of gold standard with synthetic versus what has been with Integra IDT for last 20yrs.Brief is to identify product for mass thermal burns.Could have 1000’s people burned in eg a bomb blast.Looking for non-biologic with good shelf life etc.Upside is US govt to buy a stockpile of product.One of only 2 products with full thickness burns, other is Integra biologic.
Reason why no revenue targets for following year.
David.Many companies do not.Sales still lumpy.July revenue growth was 150%, then 50 in August.Need much more consistent footprint before we do this
Ongoing covid impacts
Paul.Eg individual hospitals in Texas rather than broad regions not doing elective
Replacement of COO
Paul.Still looking.Not a lot of candidates who have worked in medical device area in Melbourne.
Paul Fanning….representing Australian shareholders association…first year following PNV…50k votes
Growth company, very impressed, completed a lot of analysis
Sales of shares in late Nov 2021 and subsequent update in early Jan, enquiries by ASX.Question is recorporate governance
Dave Williams.We have strict policies in place regarding sales of shares.A lot of surprises even in one month eg US, most sales in last week of the month.ASX quite rightly asked some questions, and that was the end of it.
Can you explain how revenue is booked?
Jan.Once goods are shipped and invoice is raised by customer
Reporting
Dave.Not required to report qtrly.May report more regularly in the future depending on data etc.
Shelf life
Paul.3yrs below 25 deg C
Dave.New arrangements in Belgium for supplying whole of western Europe eg Germany
Board equality
2 female board members currently.Actively looking for Director talent.Wide number of female managers.Very proud of gender and ethnicity mix
END OF QUESTIONS.
My live stream cut-out…didn’t hear anything else (presumably wrap up)