My guess is 'No' to a merger (or PNV taking over MVP,...

My guess is 'No' to a merger (or PNV taking over MVP, considering they are 5x the market cap).

First, I am not sure that they are the same end clients. MVP is focused on emergency wards in hospitals, military, sports, ambulances, etc. The PNV from what I understand is more surgical hospital wards? I may be wrong on that, but that's my understanding of PNV which is limited. There definitely could be economies of scope in terms of reduced costs for sales and distribution teams, but considering they are using different modalities and different partners in that space not sure it is as obvious as it may seem.

Second, the means of production are quite different from what I understand. So I don't see any cost-efficiencies in the production side of thing - which is not important in high gross margin health care space anyway. For example, continuous flow manufacturing is cheaper than batch manufacturing, yet not a lot of resources are going to developing continuous flow. Reality is, even if you can make the drug cheaper, the cost of drug manufacturing is a small component of the expenses / margins / retail price anyway.

Third, the focus for MVP and the management at the moment is 1) pain management, and 2) respiratory. There is a strategic review this year to see if respiratory medical device business remains a 'core' focus for them, or if they may even look at divesting. I am not sure they want to divest because the cash they generate would be quite small, and they have somewhat an optimistic view on future sales via Walmart etc. But at the core of it, management feels that pain management and respiratory sectors are both growing and important.

Maybe Polynovo and Avita would have a better partnership? Avita could do with some new management too..