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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »