This ASX biotech stock's sales are growing strongly, and they're just getting started.
Macquarie analysts are tipping Polynovo Ltd (ASX: PNV) shares could breach the $2 mark – up from $1.25 now – within a year, following the biotech reporting a strong full-year result this week.
PolyNovo shares are up more than 4% today after the company reported group sales of $118.6 million, up 28.9%, on Monday.
This flowed through into a net profit after tax of $13.2 million, up 151.2%.
Acting chief executive officer Dr Robyn Elliott said FY25 was a "successful year with significant growth in all major indicators: patients treated, units sold, revenue, profit and regulatory approvals."
"I thank our staff for their dedication and look forward to FY26 as we drive the commercial rollout of MTX and deliver increased value and positive outcomes for all our stakeholders."
New catalysts for growth
PolyNovo makes medical grade polymers for use in the treatment of burns and other conditions. In FY25, it launched NovoSorb MTX in the United States and expanded the clinical indication for its NovoSorb BTM product.
"NovoSorb BTM and MTX are reshaping surgical practice, with over 400 published articles and abstracts reinforcing their clinical value across a range of indications," the company said.
"Clinicians continue to identify new patient applications for our technology in areas outside the burns market.
"This is reflected in the more than 40 per cent increase in units sold in FY25 compared to FY24."
Chairman David Williams said shareholders would also find it "refreshing in FY26 to see major capital expenditure coming to an end and increased cash from operations dropping to the bottom line."
Macquarie is bullish on the ASX biotech stock
Macquarie analysts saw "several near-term positive catalysts for PolyNovo, with a significant longer-term opportunity in additional indications."
And while there was strong growth in the US, Macquarie analysts noted there was also good growth in other markets.
"The UK continues to progress well, with growth of about 52 per cent year on year to $7.5 million," Macquarie analysts said.
"First NovoSorb BTM sales were made in Malaysia, Czech Republic, Malta, Portugal and Peru in FY25.
"We forecast ongoing commercial sales growth in FY26 of about 32 per cent, supported by BTM and MTX products, new markets and ongoing expansion outside of burns."
Macquarie downgraded its 12-month price target for PolyNovo by 18%, from $2.45 to $2, driven by earnings per share changes, still providing plenty of runway from the current share price.
