PolyNovo (ASX: PNV) – PolyNovo Second FY26 Trading Update

PolyNovo delivered revenue of AUD 150 million for FY26, representing 16.1% growth on the prior year and 20.3% in constant currency terms, with the company posting record United States sales in June and significantly strengthening its cash position. The trading update reveals a business at an inflection point, having completed major capital investments while navigating a shifting reimbursement landscape in its largest market.

Commercial sales excluding BARDA trial revenue reached AUD 102.1 million, up 16.7% year-on-year, demonstrating that underlying demand for the company’s wound management products remains robust despite headwinds. The standout performer was NovoSorb MTX, which surged 89.6%, while Rest of World commercial sales expanded 20% to AUD 125.8 million. This geographic diversification matters significantly because it cushions PolyNovo against the competitive pressures and reimbursement changes that CEO Bruce Peatey acknowledged are affecting the U.S. market. The BARDA funded pivotal trial contributed AUD 138.4 million to total group revenue, though management notes this as a discrete revenue stream rather than ongoing commercial business.

The operational picture improved substantially in the second half, with June marking record U.S. sales and manufacturing production output accelerating compared to the first half. This production uplift reflects the newly completed manufacturing facility moving into validation, a capital-intensive project that PolyNovo has now largely finalized. Only AUD 1.5 million in outstanding machinery costs remain for H1 FY27, clearing the balance sheet of major expansion commitments. Management has invested heavily in commercial infrastructure, expanding the U.S. sales organisation to over 100 frontline personnel and adding specialized reimbursement expertise and marketing resources.

Cash management delivered impressive results, with operating cash flow jumping 203% to AUD 10.4 million, though investors should note this includes AUD 3.5 million in insurance receipts from the November 2025 R&D center fire. Free cash flow reached AUD 5.7 million, showing the business is now generating cash from operations as manufacturing efficiency improves and the cash generative phase begins. The company continues working with insurers on the R&D facility rebuild, with further payments expected in the first half of FY27.

Looking ahead, PolyNovo enters FY27 with meaningful product catalysts, including the planned commercial launch of NovoSorb SynPath in the outpatient space, where the company sees significant upside. The BTM product benefits from a growing clinical evidence base, with over 500 clinical articles published as of FY26. Investors should monitor U.S. reimbursement trends closely, as policy shifts in this market will be a key driver of earnings quality going forward. This announcement is price sensitive and flagged as material by the ASX.

View the full ASX announcement (PDF)

About PolyNovo Limited (ASX: PNV)

PolyNovo Limited designs, manufactures, and sells biodegradable medical devices for surgical and trauma applications, with a primary focus on dermal regeneration matrices and reconstructive surgery products. The company develops innovative biocompatible polymer solutions used in burn treatment, wound management, and emerging applications including hernia repair and pancreatic implants. It operates across multiple international markets including Australia, New Zealand, the United States, and Europe.

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