Nice one Rvajwhats your view on PNV and ARX- why are you...

Nice one Rvaj

whats your view on PNV and ARX- why are you invested in each one? I'd love to hear why
Im fully invested in my stocks now- I can see PNV rising on a good report and as shorters exit their position. PNV from all journal accounts seems to be a great product.
I read today ARX are now also combining animal products with synthetic to make essentially a hybrid that offers the best properties from synthetic and biological ECMs

Lets hope its better than Vegemite and cream cheese though, right...

The strengths for ARX for me are- very low market cap- relative to its 39 million NZD yearly revenue just reported- strong cash balance (50 million)- 10+ years of expenditure based on 2022 yearly loss of 4.3 million- 6 commercial products and 2 in pipeline. The big one for me from a sales execution point of view if ARX have 33 field sales reps and 7 inside sales- they are getting a lot of coverage of their products, leveraging the recent GPO signing with Premier- employees of PNV have stated previously the top 5 GPOS in the US represent 90% of hospital coverage- no one company has signed all 5- PNV seems well positioned having signed one of the top 5 and two much smaller ones. ARX has signed one of the top 5, but also have Tela Bio selling their Hernia and Breast products (something I could see PNV exploring at some level, particularly in countries they may not have great exposure to once they have products in this space (China/ India)
In some respects given ARX has been around longer with a larger sales team- but 20 % smaller annual revenue- what ARX is doing- and how they are executing may help PNV management on their strategic direction as to what to invest in next.
My biggest concern I can see in ARX is they have cash burn, unknown when EBITDA positive- and they are not as efficient as generating revenue per employee as PNV. Their margins are looking healthy, now 76% (which is pretty good)- with their new product getting 95-96% margins.

I think once you can get a product in the hands of the surgeon, and support them with their needs- they may stick with that product due to comfort levels- whether that is PNV or ARX- so in this respect with ARX having I think double the US sales staff as PNV- have the clear advantage to grow quickly- assuming a similar level of effort by sales staff is required to close deals at each company.
PNV is the shiny new synthetic ECM- but given Integras established gold standard leader position (the founders of Integra pioneered ECM) many surgeons may feel comfortabel using ARX since it is also an animal based product.

Im confident ARXs 80% YoY growth is also going to reflect very strong growth from Polynovo this year also, with a very strong Q4.