PetVivo Accelerates Commercial Strategy with Spryng and AI Push Despite Wider FY2026 Losses

PetVivo is a biomedical device company currently focused on the manufacturing, commercialization and licensing of innovative medical devices and therapeutics for companion animals.

Veterinary regenerative medicine company PetVivo Holdings Inc. has outlined an ambitious commercial growth strategy centered on its flagship Spryng® with OsteoCushion® Technology while simultaneously expanding into veterinary artificial intelligence, even as the company reported wider losses for fiscal year 2026.

The company, which develops medical devices and regenerative therapeutics for companion animals and horses, released its financial and operational results for the year ended March 31, 2026, highlighting continued progress in commercialization, international market expansion and digital health initiatives.

Spryng Remains the Company’s Commercial Cornerstone

At the heart of PetVivo’s strategy is Spryng® with OsteoCushion® Technology, an intra-articular injectable medical device designed to manage lameness and osteoarthritis in dogs and horses.

Unlike conventional pharmaceutical therapies, Spryng utilizes proprietary biomaterials technology to provide cushioning and support within affected joints. Management reported that the product continues to receive favorable feedback from veterinarians, particularly for its ease of administration and effectiveness in managing osteoarthritis in companion animals and equine patients.

A significant milestone announced during the earnings release was the receipt of Health Canada recognition, clearing the way for commercial launch in the Canadian market later this summer. The expansion represents PetVivo’s first major international commercialization effort for Spryng and is expected to broaden the product’s addressable market beyond the United States.

AI Becomes a Second Growth Engine

Alongside its regenerative medicine portfolio, PetVivo is investing aggressively in artificial intelligence through its subsidiary PetVivo AI.

Management disclosed that its veterinary software platform is progressing through beta evaluation, with commercialization expected in the coming months. According to company executives, early customer acquisition costs have remained below US$43 per customer, while the newly introduced AgenticPet AI platform reportedly attracted more than 1,000 beta users within its first 72 hours.

Executives believe AI-based software could ultimately become a high-margin recurring revenue business, with projected gross margins significantly exceeding those of traditional medical device products.

Mixed Financial Performance

Despite strategic progress, the company’s financial performance reflected the continuing challenges of commercial scale-up.

PetVivo reported fiscal 2026 revenue of US$1.14 million, representing only a modest increase over the previous year. However, profitability deteriorated as operating expenses increased and gross margins narrowed.

Gross margin declined from 87.8% to 66.1%, while operating expenses rose as the company invested more heavily in sales, marketing and product development. Net loss widened to approximately US$10.5 million, compared with US$8.4 million in fiscal 2025.

One notable shift was in the company’s sales mix. Direct sales to veterinary clinics increased by approximately 45% year over year, while distributor sales declined. Management attributed part of the change to the absence of promotional campaigns that had boosted Spryng sales during the previous fiscal year.

Stronger Balance Sheet

Despite ongoing losses, management highlighted significant improvements in the company’s financial position.

Current liabilities were substantially reduced following debt conversions and liability restructuring, strengthening the balance sheet and providing greater financial flexibility as commercialization efforts continue. Additional capital raised through warrant exercises and equity issuances also improved working capital during the year.

Pipeline Continues to Expand

Beyond Spryng, PetVivo continues developing several complementary technologies.

The company is advancing studies involving dogs and horses, expanding research collaborations with academic institutions and continuing development of its newly acquired PiezoBioMembrane platform, which management believes has potential applications in both veterinary and human medicine. It is also reassessing the long-term commercial strategy for its PrecisePRP™ platelet-rich plasma product as it focuses resources on higher-margin opportunities.

Industry Perspective

PetVivo occupies a niche within the veterinary regenerative medicine sector, an area attracting increasing investment as veterinarians seek alternatives to chronic pharmaceutical therapy for osteoarthritis and other musculoskeletal disorders. The company’s simultaneous investment in AI reflects a broader industry trend toward integrating digital decision-support tools with advanced therapeutics.

While the latest financial results underscore the challenges of scaling an emerging animal health business, the combination of international expansion, continued adoption of Spryng and the development of AI-enabled veterinary solutions positions PetVivo to participate in two of the fastest-growing segments of companion animal healthcare. Investors are likely to focus over the coming quarters on the Canadian rollout of Spryng, commercial uptake of the company’s AI platform and progress toward improving operating margins as commercialisation accelerates.