Why Polynovo Ltd's share price tripled in six months

The Polynovo Ltd (ASX:PNV) share price has risen sharply over the last six months. And it looks set to continue climbing.

a woman

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The Polynovo Ltd (ASX: PNV) share price was up by another 10.4% on Thursday, adding to gains exceeding 90% over the past year.

Polynovo, an Australian-based medical company designs, develops and manufactures dermal regeneration solutions using its patented NovoSorb product.

NovoSorb is a tissue scaffold that helps regeneration of skin that has been lost or damaged through trauma, burns, surgery or wounding.

PolyNovo, with a market capitalisation of about $313 million, had big plans for NovoSorb, making it the company's focus since it restructured in 2014, and it appears those plans have come into fruition.

The company's share price has almost tripled since Polynovo announced its first sale to "one of the major hospitals in the US" in September last year.

Polynovo Chairman David Williams described the event as a 'Red-letter Day' for the company.

"We plan to expand our direct sales staff now that we have proved the surgeon need and market potential of our technology," Mr Williams announced in September.

And Mr Williams, who is also the current Chairman of Medical Developments International Ltd (ASX: MVP) and a former director of IDT Australia Limited (ASX: IDT), has been putting his money where his mouth is.

Mr Williams has snapped up millions of Polynovo shares over the past year.

He's not alone, with others directors Leon Hoare, Philip Powell, Bruce Rathie,
Robert Johnston and David McQuillan together embarking on a buying spree over the past year and a half.

Following on from the Polynovo's first sales of its NovoSorb product in the US, it's announced more sales there, expanded into Israel and announced an agreement with Establishment Labs to "develop a range of medical devices for use in breast aesthetics and reconstruction".

Poluynova remains a speculative share but it seems like it's worth keeping an eye on.

Motley Fool contributor Steve Holland has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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