Ord Minnett put out an update yesterday on PNV and they remain...

Ord Minnett put out an update yesterday on PNV and they remain unimpressed with the stock, leaving their Sell/Fair Value $1 assessment of PNV unchanged.

Analyst, Shane Ponraj, remains insistent that PNV is a “no moat” company.

He also continues to fret that PNV is a one product company in the burns market which has “roughly 300 competing products”.

He sees “sales growth momentum is slowing markedly”, stating that recently announced monthly sales imply a CAGR of just 11%.

He sees hernia as the most advanced “broader indication” product in development but states that it is “still very early in the design phase” and that prototype products are yet to be shared with clinicians or to commence clinical testing. With “no timelines provided” and “relatively low R & D spending directed towards their efforts to date” he doesn’t place any value on PolyNovo’s products in development.

Any profitability he views as likely to be diluted by lower margin developing markets increasing as a proportion of revenue.

While no explicit recommendation to short PNV is provided, it’s certainly the impression created.