Global Wound Care Market Accelerates: Is PolyNovo (ASX:PNV) Positioned for Growth?

The global wound care industry is experiencing a significant transformation, driven by rising diabetes rates, ageing populations, and advances in regenerative medicine. For investors watching ASX healthcare stocks, this sector presents compelling opportunities as demand for advanced treatment solutions continues to climb.

A Growing Global Market

The wound care market reached approximately US$22 billion in 2025, according to Research Nester, with projections pointing toward US$39 billion by 2035. That represents steady compound annual growth of around 5.9% over the next decade.

Chronic wounds, including diabetic foot ulcers and pressure injuries, now affect millions globally. The International Diabetes Federation estimates diabetic patients will grow from 537 million in 2021 to 783 million by 2045, creating sustained demand for specialised treatments.

The advanced wound care segment, featuring bioactive dressings and dermal regeneration technologies, was valued at US$12.6 billion in 2025 and is expected to reach nearly US$23 billion by 2035.

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Competitor Disruptions Create Opportunities

The wound care landscape has been reshaped by significant quality issues at major players. Integra LifeSciences, a prominent competitor in dermal matrices, has faced multiple FDA warning letters since 2023 related to manufacturing compliance at its Boston facility. The company initiated a global recall of several collagen-based products, including SurgiMend and PriMatrix, due to endotoxin contamination concerns.

These disruptions have created an opening for alternative providers. Surgeons and hospitals seeking reliable supply chains have increasingly looked toward other approved products, potentially benefiting companies with clean regulatory records and consistent manufacturing quality.

Government Investment Signals Long-Term Confidence

The US government continues investing in next-generation burn and wound care technologies through the Biomedical Advanced Research and Development Authority (BARDA). This agency, part of the Department of Health and Human Services, funds clinical trials and product development for treatments that could serve both civilian healthcare and mass casualty preparedness.

BARDA's focus on synthetic, biodegradable solutions with extended shelf life and scalable production aligns with broader healthcare trends favouring cost-effective, reliable alternatives to biological products.

PolyNovo: An Australian Player in a Global Market

Melbourne-based PolyNovo (ASX: PNV) has established a growing presence in this space with its NovoSorb platform. The company's synthetic biodegradable polymer technology is used in dermal regeneration for burns, trauma, and surgical wounds.

In FY25, PolyNovo reported revenue of A$129.2 million, up 24.7% on the prior year, with net profit of A$13.2 million. The company's Q1 FY26 trading update showed group sales growth of 33.3% year-on-year, with particularly strong momentum in international markets.

PolyNovo holds a BARDA contract worth up to US$36 million to support pivotal clinical trials for FDA premarket approval in severe burns. The company has also expanded its product range with NovoSorb MTX, which saw sales jump 174.8% in the first quarter of FY26.

The US market represents the largest portion of revenue, with the company continuing to expand surgeon adoption and hospital accounts across North America, Europe, and Asia-Pacific.

Key Risks to Consider

Investors should weigh several factors. PolyNovo trades at a price-to-earnings ratio of approximately 60-65x trailing earnings, reflecting growth expectations already priced into the stock. Competition from global medical device companies remains intense, and US reimbursement policies can change. The company also recently experienced a management transition, with the CEO departing in mid-2025.

Investor Takeaway

Key points:

• The global wound care market is projected to grow steadily through 2035, underpinned by chronic disease prevalence and demographic shifts
• Competitor supply disruptions have created potential openings for alternative providers
• PolyNovo has demonstrated consistent revenue growth, but trades at a premium valuation

For investors exploring ASX healthcare stocks, the wound care sector offers exposure to structural healthcare trends. Understanding both the opportunity and the risks is essential for informed decision-making.

Explore ASR's Investing Report for in-depth analysis of growth-focused opportunities across the Australian market, or download our free market outlook report to get started.

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