PolyNovo Reports FY26 Revenue of AUD 150 Million with 44% Net Profit Decline

Revenue Growth Tempered by Fire-Related Asset Write-Off

PolyNovo Limited (ASX:PNV) posted a solid 16.1% increase in total revenue for FY26, reaching AUD 149.98 million, fuelled by a 16.7% rise in commercial sales to AUD 138.4 million. However, net profit after tax (NPAT) halved, falling 44.4% to AUD 7.34 million. The sharp decline was driven by a AUD 4.7 million write-off of assets damaged in a November 2025 fire at its R&D Innovation Centre, partially offset by a AUD 6 million insurance claim related to the incident, alongside a swing from a prior year tax benefit to a tax expense in FY26.

US Market Momentum and NovoSorb MTX Adoption

US sales remained a key growth driver, increasing 15.6% to AUD 102.1 million (21.1% in constant currency), with NovoSorb MTX sales nearly doubling to AUD 12.6 million, reflecting accelerating adoption in complex wound care beyond burns. The company added 200 new hospital accounts in the US, expanding its footprint to over 880 hospitals and employing a 106-strong sales team. Growth outside the US was also robust, with Rest of World sales up 20% to AUD 36.3 million, buoyed by strong performances in markets including Turkey, Hong Kong, India, and Australia.

Manufacturing Capacity Expanded to Support Growth

Operationally, PolyNovo completed construction of a new manufacturing facility in Port Melbourne during FY26, with validation activities progressing ahead of a planned transition in FY27. Manufacturing output surged in the second half of the year, improving operational efficiency and positioning the company for scaling. Capital expenditure totalled AUD 13.8 million, primarily directed to this facility, with remaining machinery payments expected in the first half of FY27.

Regulatory Advances and Strategic Focus

PolyNovo finalised the Clinical Study Report for its pivotal US randomized controlled trial funded by BARDA, supporting the planned Premarket Approval (PMA) submission for NovoSorb BTM in full-thickness burns. The PMA application is targeted for submission before the end of 2026, incorporating 18-month follow-up data to strengthen the package. This regulatory milestone aims to unlock broader US market access and reimbursement opportunities. Meanwhile, the company is advancing its outpatient strategy with the NovoSorb SynPath brand, designed for the US outpatient market with an existing HCPCS code to facilitate reimbursement.

Leadership Changes and Remuneration Framework Update

FY26 saw leadership transitions with Bruce Peatey appointed CEO in December 2025, bringing extensive international healthcare experience. The Board undertook a comprehensive review of executive remuneration, approving a new framework for FY27 that includes a formal long-term incentive plan to better align rewards with sustained shareholder value. Peatey received a one-off equity award on commencement, vesting over three years, separate from the ongoing incentive framework.

Financial Position and Risks

PolyNovo ended FY26 with a strong balance sheet, holding AUD 35.4 million in cash and cash equivalents and manageable debt of AUD 3.6 million. Operating cash flow improved markedly to AUD 23.1 million, supporting capital investments and strategic initiatives. Key risks highlighted include manufacturing concentration at the Port Melbourne facility, reliance on suppliers, and evolving regulatory compliance demands. The company continues to invest in operational resilience and diversified supply chains to mitigate these risks.

Expanding Clinical Evidence and Global Footprint

Clinical evidence supporting the NovoSorb platform continues to grow, with over 500 publications underpinning its use in burns and complex wounds. Registration expansions include eight new markets for NovoSorb BTM and ongoing NovoSorb MTX approvals in regions such as Hong Kong and the UK. The company is also progressing regulatory plans in Japan and Latin America. This global footprint expansion aims to capitalize on the platform's versatility and drive adoption across multiple specialties.