PolyNovo’s FY25 Results: From Burn Treatment to Bottom-Line Brilliance

It’s been a bumper year for PolyNovo (ASX:PNV), the Melbourne-based biotech redefining wound care with its proprietary NovoSorb technology. For FY25, the company stitched together a compelling financial and operational performance, delivering a 151% increase in net profit after tax to $13.2 million, underpinned by surging global sales and robust clinical momentum.

Commercial product sales reached $118.6 million, up 28.9% year-on-year, thanks in large part to a 28.7% rise in US sales and a 29.6% surge across the rest of the world. It wasn’t just about more sales, but more markets too—PolyNovo added new territories including Malaysia, Peru and the Czech Republic, bringing its reach to 46 countries.

The star of the show was NovoSorb MTX, a thinner and more flexible derivative of PolyNovo’s flagship BTM. MTX brought in $6.7 million in its first full year post-launch in the US, bolstered by expanded regulatory approvals for thicker (up to 6 mm) and more versatile indications. Overall, the US contributed $88.4 million to PolyNovo’s topline—no small feat in a market dominated by entrenched medtech players.

“We’re not just making products; we’re transforming surgical practice,” said acting CEO Dr Robyn Elliott. “FY25 has been a successful year with significant growth in all major indicators: patients treated, units sold, revenue, profit and regulatory approvals.”

The NovoSorb portfolio’s regenerative capabilities have not gone unnoticed. The products are increasingly used not just in burns, but in trauma, limb salvage, and reconstructive surgery—applications that broaden the total addressable market considerably.

Chairman David Williams was equally bullish but pragmatic. “While I am still focused on revenue growth, shareholders will find it refreshing in FY26 to see major capital expenditure coming to an end and increased cash from operations dropping to the bottom line.”

Indeed, PolyNovo is beginning to enjoy the fruits of operational leverage. While revenue rose by nearly 29%, operating expenses climbed a more modest 19.4%. EBITDA more than tripled to $11.2 million, and the company ended the year with a tidy $33.5 million in cash—even after $13.9 million in capital spend and repaying $4.8 million in debt.

From a strategic standpoint, PolyNovo is also prepping for the next phase. Its PMA submission for NovoSorb BTM in full-thickness burns is on track for late CY25, following the 12-month data review from the BARDA-funded pivotal trial. The trial’s outcome could open the door to expanded US indications—and significantly greater reimbursement.

Meanwhile, the pipeline remains fertile. Preclinical results for its hernia mesh prototype have been described as “excellent”, and there’s early promise in a collaboration with Beta Cell Technologies exploring NovoSorb as a delivery platform for pancreatic islets in Type 1 diabetes.

With a refreshed board, a new CEO search underway, and its third manufacturing facility nearing completion, PolyNovo looks well-positioned to maintain momentum.

The only blemish? A 51% share price decline over the past year, from $2.45 to $1.20. But with the fundamentals firming up and the commercialisation path increasingly de-risked, some long-suffering shareholders might finally feel the burn is beginning to heal.