Polynovo Limited

ASX:PNV

Polynovo Limited

ASX:PNV
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$1.205 (+0.4%)
Last close price
#38
Rank
27
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68
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Reports (12) My Report Forum Investors
Forum Topics PNV PNV AGM

Pinned straw:

Straw deleted
mikebrisy
Added 2 years ago

I am unable to publish my usual summary of the $PNV AGM due to being focused on other commitments for the next 10 days. However, I found the inputs from various key staff members across USA, India, Operations, R&D and Prof Marcus Wagstaff (KOL) very informative on many fronts. (Continued nuggets of insight in the unrehearsed remarks, even as there was some evidence of better preparation this year!)

A recording of the meeting will be availabe one the ASX early next week, and I thoroughly encourage current holders and anyone on the fence to listen to it.

Although there were few if any numbers I can take to the bank, it both deepened my understanding of the business and also my conviction in this as a long term hold (and a buy at today's price if you aren't "at weight".)

I remain comfortable with my current SM valuation.

DYOR!

Disc: Held in RL (4.5%) and SM

16
lankypom
Added 2 years ago

I agree the AGM was very light on new facts, but the overwhelming sentiment presented by David and his minions is that the sky is the limit for this business. It appears that the appointment of Swami as CEO has opened the gateway to India, and apparently the first sale has already been made.

Selling to government hospitals in India is predicated on winning tenders, which allegedly always go to the lowest cost tenderer. David claimed that PNV is at least half the cost of the nearest competitor, in which case winning these government tenders should be a slam dunk for PNV.

Of course we don't know how long it would take from winning a tender to actually making sales, and we don't know what sort of margins the company is aiming for in India, so as is usually the case with this company I am left with lots of confidence and warm feelings that here is a star in the making, but no idea how to quantify the growth opportunities.

In other news, the company is close to making some kind of deal with both the Ukrainian and Israeli governments, and we should expect to hear some announcements before the year is out. This could of course be a purely philanthropic move - I'm not expecting any new revenue that flows from these discussions to move the needle.

As well as geographic expansion the company is very busy on the product development front, with an expanded research team that has grown from 4 to 14 people in the past year. They have developed a knitted mesh that can be used in combination with Novosorb for certain kinds of hernia repair, but no mention of when this might be commercialised.

I feel a bit sorry for Swami as he is totally overshadowed by David Williams in these public events. I hope he carries more influence behind the scenes. A few choice DW quotes:

"It's not that I’m not interested in profit, but I’m more interested in growth."

“We’re in danger of making a profit in the first half of FY24”.

“We’ve got plenty of cash ($46m) and we don’t really need it anymore anyway.”

“It's going as well as it could be, everywhere."


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