Planet Innovation (PI) has achieved record revenue in FY21 driven by strong growth in the global medtech sector.
Following a strong year in 2020, PI’s latest results reveal the business is continuing its trend of high growth.
- Total revenue from products and services was $112m, up 69% on A$66.2m in FY20. This reflects a 27% Compound Average Growth Rate (CAGR) over the last 4 years.
- PI Services revenue was $70 million, a 58% increase compared to FY20.
- Manufacturing growth was particularly significant, seeing a 93% increase from the previous year to $42.1 million.
“Over the last year, we’ve focused on responding to the needs of our customers, continuing to introduce new services and executing our growth strategy,” PI’s co-CEO Sam Lanyon said.
In FY21 the company make several strategic investments in its growth – including opening a second state-of-the-art cleanroom to meet global demand for the manufacture of sterile medical consumables and launching a new commercial services unit, PI Commercial to help our clients commercialize their regulated products.
SG Hiscock is a long-term PI Investor. Rory Hunter, Portfolio Manager for the SGH Medical Technology Fund said: “PI’s business model is unique, and the stellar YoY growth comes as testament to the success of this model. PI provides full end-to-end services to clients and builds long term relationships in tandem with scaling manufacturing. The result of this means that PI builds what it designs and the FY21 results come as further validation of this successful strategy.”
The record revenue was largely driven by strong demand from US-based clients, who now represent approximately 75% of PI’s revenue and the market demand for ‘one-stop-shop’ service providers, like PI, that can support the full product lifecycle of diagnostic and medical devices.
The results are also in part due to an increased appetite for innovation and technical capability across healthcare globally.
“While the COVID pandemic presented significant challenges to many industries and communities, it also created heightened demand for critical medical devices, and a much greater awareness of point-of-care devices and how they can contribute to the global healthcare sector,” Sam said.
“Crucially, as the world recovers from the pandemic, what we’re finding is this isn’t a ‘flash in the pan’ moment for medtech – the industry is primed for continued growth.”
Analysis by Alira Health estimated the medtech contract design and manufacturing market to be worth US$52.9 billion in 2019. It is projected to nearly double to US$100.9 billion by 2025, with the U.S.A. representing 55% of the industry.
“We’re seeing unprecedented demand for the type of services we offer – with particularly strong growth in manufacturing and the design, manufacture and commercialization of digitally connected regulated products,” Sam said.
“Healthcare technology will only become more complex and more digital, and Planet Innovation has proudly positioned itself to be at the center of this evolution and help deliver improved healthcare services to people around the world.”
