Company Reports

We intend to cease coverage of IDP Education, Polynovo, Avita, and Clinuvel. We plan to cease coverage on or around June 30, 2026.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach, the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights that the global market is underserved. The firm entered several new markets in fiscal 2023, including India, France, Spain, Canada, and Hong Kong. Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 76% of sales in fiscal 2025, new geographies would diversify the sales mix.

Polynovo's interim 2026 sales rose a solid 26% to AUD 68 million, driven by a 25% increase in US sales to AUD 52 million. Sales of its new alternative product that has no sealing membrane, Novosorb MTX, almost tripled to AUD 6 million. Underlying EBITDA grew 82% to AUD 5 million on cost control.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach, the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights that the global market is underserved. The firm entered several new markets in fiscal 2023, including India, France, Spain, Canada, and Hong Kong. Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 76% of sales in fiscal 2025, new geographies would diversify the sales mix.

Polynovo's first-half 2026 revenue of AUD 70 million rose 18% on the previous corresponding period, driven by a 25% increase in US sales to AUD 52 million. Sales of its new alternative product that has no sealing membrane, Novosorb MTX, were up 195% to AUD 6 million.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach, the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights that the global market is underserved. The firm entered several new markets in fiscal 2023, including India, France, Spain, Canada, and Hong Kong. Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 76% of sales in fiscal 2025, new geographies would diversify the sales mix.

Polynovo's first-quarter 2026 sales of AUD 35 million rose 33% on the previous corresponding period, driven by a 31% constant-currency increase in US sales to AUD 27 million. Sales of its new alternative product that has no sealing membrane, Novosorb MTX, were up 175% to AUD 3 million.

The Centers for Medicare & Medicaid Services aims to save money by proposing to reimburse United States clinicians a flat fee for outpatient skin substitutes from Jan. 1, 2026, rather than a percentage of the product price. A decision is expected in November. Shares in Polynovo are up 7%.

Polynovo's fiscal 2025 sales rose 29%, led by a 29% increase in US sales to AUD 88 million. Growth was driven by its core synthetic skin product and growing adoption of its alternative product that has no sealing membrane, with the rest-of-world markets also contributing. Shares rose 9% on the day.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach, the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights that the global market is underserved. The firm entered several new markets in fiscal 2023, including India, France, Spain, Canada, and Hong Kong. Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 76% of sales in fiscal 2025, new geographies would diversify the sales mix.

Polynovo’s fiscal 2025 EBITDA more than tripled to AUD 12 million compared with last year. Demand for its products is growing fast, with June 2025 monthly sales of AUD 13 million, up 8% on March 2025. Novosorb MTX in particular is gaining traction in the US after a fourth-quarter fiscal 2024 launch.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights the global market is underserved. The firm entered several new markets in fiscal 2023 including India, France, Spain, Canada, and Hong Kong, Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 80% of sales in fiscal 2023, new geographies would diversify the sales mix.

While pharmaceuticals are still exempt from US tariffs, President Donald Trump has threatened a potential 200% tariff on these imports, perhaps from 2027. Reciprocal tariffs announced prior have also been delayed by a month to Aug. 1, 2025. Australian healthcare stocks barely reacted.

President Donald Trump unleashed a barrage of reciprocal tariffs on US trading partners that were more expansive and aggressive than the market was expecting. Pharmaceuticals are exempt for now but most medical devices are affected. Australian healthcare stocks broadly reacted negatively.

No-moat Polynovo’s CEO has stepped down following reports of certain interactions between the chairman, David Williams, and management, which has not instilled market confidence. We do not foresee significant changes in strategy or risk in the business transitioning to a new CEO. We leave our estimates unchanged, including our forecast five-year revenue compound annual growth rate of 16%. Shares are currently trading close to our unchanged fair value estimate of AUD 1.15 per share.

No-moat Polynovo’s first-half fiscal 2025 sales were AUD 54 million, up 9% on second-half fiscal 2024. Its main market remains the US, with 76% of sales stemming from there. December 2024 revenue of AUD 10 million was broadly flat on November 2024. We cut our fiscal 2025 revenue forecast by 6% due to a weaker US dollar and non-US sales falling by 4% on second-half fiscal 2024. Our fiscal 2025 EBIT forecast decreases by 9% to AUD 13 million, with the first half having generated AUD 6 million. However, we leave our long-term estimates broadly unchanged and maintain our fair value estimate of AUD 1.15 per share.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights the global market is underserved. The firm entered several new markets in fiscal 2023 including India, France, Spain, Canada, and Hong Kong, Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 80% of sales in fiscal 2023, new geographies would diversify the sales mix.

No-moat Polynovo’s first-half fiscal 2025 sales were AUD 54 million, up 9% on second-half fiscal 2024. Its main market remains the US, with 76% of first-half sales stemming from there. December 2024 revenue of AUD 10 million was broadly flat on November 2024. Our revenue forecasts are broadly unchanged despite a slight strengthening of the US dollar. We maintain our fair value estimate of AUD 1.15 per share.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights the global market is underserved. The firm entered several new markets in fiscal 2023 including India, France, Spain, Canada, and Hong Kong, Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 80% of sales in fiscal 2023, new geographies would diversify the sales mix.

Polynovo’s strategy revolves around expanding its geographical footprint to increase access to its products and open new hospital accounts. With its geographical reach the firm estimates its products are available to 800 million people as of fiscal 2023, but highlights the global market is underserved. The firm entered several new markets in fiscal 2023 including India, France, Spain, Canada, and Hong Kong, Polynovo intends to enter more geographies with new regulatory approvals, particularly with a focus on China and Japan through distribution partners. While the US market is key for Polynovo, representing roughly 80% of sales in fiscal 2023, new geographies would diversify the sales mix.