- PolyNovo’s patented bioabsorbable polymer technology, Novosorb®, has created a family of revolutionary medical treatments.
- The company has expanded its market, generating revenue, but there is no profit to date.
- Some industry analysts believe PolyNovo will become profitable in FY 2024.
PolyNovo has a range of medical treatments to treat deep tissue wounds. They are derived from the company’s patented bioabsorbable polymer Novosorb® technology. The company has direct access to the medical industry in Australia, New Zealand, the UK, Singapore, Ireland, the Middle East, and its largest market to date – the United States, plus a network of distributors to service other countries around the world.
The company has grown revenue in each of the last four fiscal years but has yet to turn a profit.
PolyNovo Financial Performance
Source: ASX
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On 25 September, the company issued an update, reporting that revenues for the month of August exceeded revenues from August 2022 by 119%. Year-to-date revenue is up 92.7% over the previous corresponding period, led by sales in the US.
On 6 December, the company issued another update, announcing record revenues for November, again led by sales in the US.
Over five years the share price is up 157.5%, hitting an all-time high at the close of the calendar year 2020. Investors may have grown tired of increasing revenues without profits, sending the share price into a downward trend beginning in 2021, with it being down 21.17% year over year.
Source: ASX
An analyst at Medallion Financial Group has a BUY recommendation on PolyNovo shares, citing the growth potential in the Indian market, the 58.8% revenue increase in FY 2023, and the record-setting November sales.
The analyst consensus rating for PolyNovo is OUTPERFORM, with five of the eight analysts reporting at BUY, one at OUTPERFORM, one at UNDERPERFORM, and one at SELL.
Some financial websites report a consensus of industry analysts who believe PolyNovo will turn profitable in FY 2024.
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