Artificial skin firm PolyNovo soars on sales milestone

Shares in biotech PolyNovo, which supplies artificial skin to treat burns and other injuries across the globe, climbed after it announced record monthly sales.

PolyNovo chairman David Williams.

Shares in biotech PolyNovo, which supplies artificial skin products to treat burns and trauma around the world, climbed on Monday after it announced record monthly sales.

PolyNovo shares rose 5.6 per cent to $2.06 after it told the ASX it had posted $10.1m in sales in November, helped by growth in its US business.

The shares have gained more than 21 per cent so far this year.

PolyNovo chairman David Williams said the company was now supplying 46 countries around the globe, but was most proud of the humanitarian efforts in countries where it supplied products for free.

Earlier this year, Ukrainian doctors announced they were eager to collaborate with Australian plastic surgeons specialising in burns after purchasing artificial skin products from PolyNovo.

The company’s synthetic skin for burns and soft-tissue regeneration also has been used to treat Australian bushfire and New Zealand volcano victims.

PolyNovo chief executive Swami Raote said the company was grateful to its clinicians, partners and staff who were working to ensure the company’s artificial skin, which trades under the name NovoSorb, was the product of choice across plastic and reconstructive surgery.

“Our product is on a steep adoption curve in the US,” said Mr Raote. “It is satisfying to see our patient impact expanding at more than twice the rate of our revenue growth, to stand at 62,000-plus patients globally since treating our first patient.”

David Williams.

NovoSorb is used for the regeneration of the dermis when lost through extensive surgery, trauma or burns.

PolyNovo said its US business grew strongly, with monthly sales of $7m, with year-to-date sales of $33.9. Total group revenue for the month was $11m.

Earlier this year, the Port Melbourne company received a state government grant as part of the $15m Made in Victoria Industry R&D Infrastructure Fund.

The company will use the funding to build a polymerisation lab that will fast-track new products, including some implantable products that have high promise for hernia and breast reconstruction patients.

Mr Raote said at the time the grant would ensure an “exciting pipeline of future products with the potential to redefine healing.”

Mr Raote said plans for the manufacturing capacity expansion were on track for completion by December 2025. “The new facility is designed for scale with focus on flexibility, modularity, and automation to service five times current volumes,” he said.

“This will be critical as we continue to advance into developed as well as developing geographies – well beyond the current reach of advanced skin substitutes.”

Since receiving US Food and Drug Administration approval nine years ago, the company had been able to help 50,000 patients globally. “The US remains the driving force for our company, growing by 49 per cent over prior year,” Mr Raote said. “As we expand into other trauma, infection and active complex wounds , the number of patients healed is expanding at a stronger pace.”

Originally published as Artificial skin firm PolyNovo soars on sales milestone