Melbourne biotech company PolyNovo has posted a $2.4 million loss for the first half, up 26 per cent from a year ago, but executives says it is on a clear path to breaking even.
Its revenue rose 80 per cent in the six months to December 31 to $10.2 million, with commercial sales up 129 per cent to $8.6 million.
PolyNovo produces a range of biodegradable polymers – developed by CSIRO, the federal government research agency – that can be used for for treating wounds, burns and extensive surgery.
PolyNovo chief executive Paul Brennan told analysts on a conference call on Wednesday that the company had $8 million in the bank and saw a “clear pathway” to breaking even.
Mr Brennan said sales were still “lumpy” but based on year-to-date performance he expects they will comfortably double this fiscal year.
Mr Brennan said the 69-employee company was adding one salesperson a month in the United States and had outgrown its US office in San Diego.
Work is progressing on a new factory in Port Melbourne for its product for treating hernias.
At 1137 AEDT, PolyNovo shares were down 12.1 per cent at $2.66 amid a broader market selloff, but still up 35 per cent for the year.