Recent presentation at Macquarie showed parents will start expiring from 2023. That’s only 4 years of exclusivity, then competitors may copy product and eat away at market share. However, there may be some significant “know how” and trade secrets required to reproduce NovoSorb. 

Potential for future patents around method of use in new indications/treatments eg Hernia, Brest Surgery

Maquarie Wealth Management has initiated coverage on the 31st of May with a 12m price target of $1.5

-PolyNovo claims to have an edge over competitors because they can design NovoSorb to have varying lengths of degradtion rates depending on what is required by the clinical case

-Generally speaking, once a medical product gains ground, medical professionals are very relucantant to change due to the risk of a new product failing, thus if NovoSorb gains ground it will have quite a defensive revenue stream

-Always the possibility that complications/adverse events from use of NovoSorb may arise as more patients are treated with NovoSorb. Whilst clinical trials are meant to mitigate this risk, the increased sample size following entry to market of a medical device is the real test of safety

-Approval by regulatory bodies removed or not granted

-My sense is that medical professionals are risk adverse meaning they are reluctant to try new products on patients, consequently penetration into the market is always slow with new medical devices. Risk is that PolyNovo can not convince surgeons to adopt the use of NovoSorb

-Facility to manufacture NovoSorb is likley highly sophisticated meaning NovoSorb can not be produced anywhere and destruction of the facility by fire for example would cripple the supply chain 

-NovoSorb likely needs to be sterile, contamination of the product and subsequent infection of the patient would critically wound PolyNovo

Macro Level

-Health care industry continues to grow as the world progressively becomes more affluent meaning more people can access healthcare, ultimately increasing demand for medical device products

Business Level

-Increased adoption by surgeons for use on patients will drive revenue growth in the mid-term

-Approval of NovoSorb by regulatory bodies

-Entry of NovoSorb for dermal regeneration into new geographic markets

-Success of clinical trials testing the application of NovoSorb in new clinical cases, currently have a trial for tissue repair following burns

-Sales realised in the USA to date

-Given the wide variety of clinical cases that require dermal regeneration I am guessing the application of NovoSorb is expansive (Dont have a market size in terms of $$$ yet)

-Currently approved in the USA, Israel, AUS, NZ, South Africa, Saudi Arabia

-In process of gaining approval in Europe and entering market

-PolyNovo is a medical device company whose current activities are focused around commercialising its patented tissue scaffold technology "NovoSorb"

-NovoSorb is a polymer (kind of like a plastic or fibre) that is used to assist in tissue repair following injury

-NovoSorb is applied to a wound to act as a scaffold to aid in the regrowth of dermal tissue (the tissue under your skin) and blood vessels, then degrades over time.

-Since posting their first sales of NovoSorb, directors have been buying a number of direct shares over the past year

Update (21/3/19):

-Chairman David Williams collects ~$25,000 through his super @ $0.735/share, now has ~16m shares

-Directer Bruce Rathie collects ~$30,000 through his super @ $0.745/share, now has ~3.5m shares