Anticipate that adjusted cash on hand at 30/06/25 (by adding back overdue, not at risk U.S. debtors, less remaining $8.5m capex for completing new facility) will be $25.9m, compared with $21.8m at 31/03/25.
Debt collection has improved significantly after bringing debt collection back in house. Debtor days are now down from 92 to 70, with aim to reduce to 55 days by EOFY.
New third facility building on track with no cost blowouts. Expected to be operational by December this year. Provides capacity for an additional A$500m in product sales.
India
$200,000 sales in April, up from $133,000 in March.
Targeting sales of $2m for the year.
Now have been awarded 25 tenders and selling in 328 hospitals (compared with 16 tenders and 300 hospitals reported on 07/05/25). Aiming to win 100 tenders by December 2025.
Large (10cm x 10cm) sheet of BTM priced in India at approximately A$1,000, compared with A$1,200 in Australia and US$1,200 in the US.
Main use currently in worst burns cases but, over time, expect use to extend to trauma and DFUs (My note: est. 100m diabetics and 136m pre-diabetics in India; The Economic Times, 25/02/25).
There has been a major effort put into education of surgeons, initially about use of dermal matrix and then about Novosorb. Comment that “Every surgeon in India now knows about Novosorb BTM.”
MTX also now approved in India and big sampling drive has already commenced.
United States
Over 80 sales people now in the field and 16 more expected to be added over the next year.
Rule of thumb provided by DW that 1 sales person = $1m sales run rate.
PolyNovo now seen as ‘employer of choice”, aiding recruitment of high quality, experienced reps.
Seeing increasing enthusiasm by surgeons for MTX, which has now hit $1m monthly sales.
MTX uses in indications such as amputation, head and neck surgeries and deep ulcer wounds.
Interim CEO, Robyn Elliot, said that she sees MTX as significantly additive to, rather than cannibalizing, BTM sales.
Company is being approached by distributors from around the world and sales are commencing in places such as Mexico and Peru.
Beta Cell Technologies
Was originally Prof. John Greenwood’s idea to use BTM to grow cells. This work commenced almost a decade ago. Vascularization within the BTM is the key.
Stressed that this is not just about a treatment for type 1 diabetes; this is a platform for cell delivery.
Suitable for “any cellular product that secretes hormones”.
Examples of potential indications other than type 1 diabetes include adrenal cell replacement, parathyroid cell replacement and Parkinson’s.
Outpatient nature of procedure is seen as very attractive.
Prof. Coates and Greenwood don’t anticipate regulatory hurdles as both the cells and the BTM already have regulatory approval/ clearance.
Prof. Coates said that Beta Cell Technologies was open to collaboration with PolyNovo in a more structured relationship, including the possibility of acquisition.
A representative from Novo Nordisk was quoted as saying that he believed that every cell therapy will need this cell delivery system (DW’s comment).
More will be revealed about relationships in approx. two weeks when Prof. Coates’ article will be published.
My Further Comments
For those not familiar with Danish pharma, Novo Nordisk, it is the world leader in diabetes and is well-known for its GLP-1 drugs, Ozempic and Wegovy.
Revenue in 2014 was US$42.1bn, double the revenue of 2021.
In 2024, Novo Nordisk spent just under US$7bn on R & D.
Stated interests of Novo Nordisk include:
…partners with expertise in novel modalities and technologies, working across early research through clinical development to commercialisation
….potentially disease-modifying compounds, and technologies that address unmet medical needs for people living with a serious chronic disease
Novel mechanisms and disease modifying therapies in type 1 and 2 diabetes
Cell therapies (stem cell) and differentiation protocols for serious chronic diseases
Emerging, novel and next-generation technologies with disruptive potential to improve patient experience and outcomes
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