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PetVivo Holdings, Inc. (PETV) Q1 2026 Earnings Call Transcript

PetVivo Holdings Inc. Reports First Quarter Fiscal 2026 Results: Growth in Veterinary Biomedical Sector Amid Challenges

PetVivo Holdings Inc., a biomedical device company specializing in innovative veterinary products, held its earnings conference call for the first quarter of fiscal year 2026, ending June 30, 2025. The call featured key executives including CEO John Lai, CFO Garry Lowenthal, and Chief Business Development Officer Robert Folkes, who provided insights into the company's performance, strategic initiatives, and future outlook. The discussion highlighted PetVivo's flagship product, Spryng with OsteoCushion Technology, an injectable veterinary device designed to manage lameness and joint afflictions in companion animals such as dogs, cats, and horses.

Opening the call, CEO John Lai expressed optimism about the company's trajectory, emphasizing PetVivo's role in addressing unmet needs in animal health. He noted that the quarter reflected continued progress in commercializing Spryng, which mimics natural cartilage to provide non-pharmacological relief for conditions like osteoarthritis. Lai highlighted the growing adoption of Spryng among veterinarians, driven by positive clinical outcomes and increasing awareness in the pet care market. He pointed out that the global veterinary orthopedic market is expanding rapidly, fueled by rising pet ownership and a shift toward advanced treatments, positioning PetVivo for sustained growth.

Financially, CFO Garry Lowenthal delved into the quarter's results. PetVivo reported total revenues of approximately $125,000, marking a sequential increase from the previous quarter but remaining modest compared to the prior year. This revenue was primarily derived from sales of Spryng through distribution channels, including partnerships with major veterinary suppliers. Lowenthal attributed the growth to expanded marketing efforts and new clinic adoptions, though he acknowledged challenges such as seasonal fluctuations in veterinary procedures and supply chain constraints. Operating expenses totaled around $2.5 million, driven by investments in sales and marketing, research and development, and general administrative costs. The company reported a net loss of about $2.4 million, or $0.12 per share, which was in line with expectations for a growth-stage company focused on scaling operations.

Lowenthal also discussed the balance sheet, noting that cash and cash equivalents stood at roughly $500,000 at quarter's end. He mentioned recent financing activities, including a registered direct offering that raised additional capital to support ongoing commercialization. The CFO emphasized cost management strategies, such as optimizing inventory and streamlining operations, to improve margins over time. He projected that as Spryng gains broader market penetration, economies of scale would help reduce the burn rate and move toward profitability.

Shifting to business development, Chief Business Development Officer Robert Folkes provided updates on key initiatives. He highlighted the expansion of distribution agreements, including a new partnership with a leading animal health distributor that extends Spryng's reach to over 1,000 veterinary clinics across North America. Folkes discussed ongoing clinical studies, including a multi-center trial evaluating Spryng's efficacy in equine applications, with preliminary data showing significant improvements in mobility and pain reduction. He also touched on international expansion efforts, with regulatory submissions underway in Europe and Asia to tap into global markets where pet healthcare spending is surging.

Lai elaborated on strategic priorities, underscoring the importance of education and outreach. PetVivo has ramped up its presence at veterinary conferences, webinars, and trade shows to demonstrate Spryng's advantages over traditional treatments like steroids or surgery. He mentioned collaborations with key opinion leaders in veterinary medicine, who have endorsed the product for its safety profile and long-lasting effects. Additionally, the company is exploring line extensions, such as formulations tailored for smaller animals or specific joint conditions, to diversify its portfolio.

The call addressed challenges, including competition from established players in the animal pharmaceuticals space and the need for broader reimbursement in veterinary insurance. Lai noted that while human biomedical innovations often inspire veterinary advancements, PetVivo's focus on device-based solutions differentiates it from drug-centric competitors. He stressed the company's commitment to intellectual property, with several patents protecting OsteoCushion Technology, providing a moat against imitators.

In the forward-looking segment, executives outlined guidance for the remainder of fiscal 2026. They anticipate revenue growth acceleration in subsequent quarters, driven by increased sales volumes and new market entries. Lai projected that full-year revenues could double from fiscal 2025 levels, assuming successful execution of distribution expansions and positive trial outcomes. However, he cautioned about risks such as economic uncertainties affecting pet owners' discretionary spending and potential delays in regulatory approvals.

The Q&A portion of the call featured questions from analysts, focusing on topics like gross margins, customer acquisition costs, and competitive landscape. One analyst inquired about the impact of inflation on raw materials for Spryng production, to which Lowenthal responded that the company has secured long-term supplier contracts to mitigate price volatility. Another question addressed marketing strategies, with Folkes explaining a digital-first approach, including social media campaigns targeting pet owners and vets, which has yielded a strong return on investment through higher conversion rates.

Lai also fielded queries on potential acquisitions or partnerships, hinting at exploratory discussions with complementary companies in the pet wellness sector but emphasizing organic growth as the primary focus. Regarding human health applications, he noted that while OsteoCushion Technology has potential crossover, PetVivo remains committed to veterinary markets for now, though licensing opportunities could be pursued in the future.

Overall, the earnings call painted a picture of a company in the early stages of commercialization, with promising technology and a clear path to growth despite financial hurdles. Executives conveyed confidence in Spryng's market potential, backed by data from over 5,000 treated animals showing high satisfaction rates. Lai closed by reiterating PetVivo's mission to improve animal quality of life, inviting stakeholders to follow upcoming milestones like study publications and product launches.

This quarter's results underscore PetVivo's resilience in a competitive field, with strategic investments poised to drive value. As the company navigates scaling challenges, its innovative approach to veterinary care continues to attract attention from investors interested in the burgeoning pet health industry. (Word count: 928)

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