ASX Healthcare Stocks Weathering the Tariff Storm
PolyNovo and Mesoblast are asserting that their products are not impacted by the new U.S tariff changes so they can still reach main markets without any issues and both the companies have shown solid financial performance in FY2025 with pipelines getting bigger and adoption rising across the world.
PolyNovo Limited (ASX: PNV)
recently announced that its NovoSorb BTM and MTX products which are sold in the US are not hit by the new 100% tariff since they are classed as medical devices they only face the old 10% tariff on Australian exports. Management also mentioned they don’t think this will really affect performance. In FY25 it posted strong numbers with revenue jumping 23.3% to A$129.2 million. This was led by a 28.9% lift in commercial sales to A$118.6 million. US sales grew 28.7% to A$88.4 million and revenue from rest of the world went up 29.6% to A$30.3 million with solid gains in UK, Canada and India. EBITDA more than tripled to A$11.2 million and NPAT shot up 149% to A$13.2 million as higher sales outpaced rising expenses. Cash was A$33.5 million after paying down borrowings and spending on factory expansion. Operating cashflow also turned positive at A$3.1 million. For the future growth will be supported by new approvals, the BARDA pivotal trial filing along with entering new markets and products like antimicrobial and surgical mesh.
Mesoblast Limited (ASX: MSB)
also said that its allogeneic cell therapy products are treated as U.S origin so they are not hit by pharma tariffs. A big step was in December 2024 when Ryoncil became the first FDA approved mesenchymal stromal cell therapy in U.S for kids with steroid refractory acute graft versus host disease. The product was launched in March 2025 and in the last quarter it made about US$11.3 million in net sales. In FY25 the total cell therapy revenue jumped 191% to US$17.2 million helped by 32 transplant centers. The company had cash of US$162 million by June 30 2025 which is enough to keep funding its pipeline but net operating cash spend was US$50 million because of the launch and commercial expansion. Its pipeline has late stage trials for adult SR-aGvHD and biologic resistant inflammatory bowel disease plus a Phase 3 trial in chronic low back pain, and fast track approval plans for Revascor in heart failure. The company also owns more than 1,100 patents that extend till 2041 which shows its strong position as a global leader in cell medicines.
(Source: Company Announcements)
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