The Motley Fool

Why the Polynovo share price is now up 24x in 5 years

The Polynovo Ltd (ASX: PNV) share price is up 7% to $2.43 this lunchtime despite the biotech not releasing any specific news to the market.

On September 23 the little-known surgical material business joined the S&P/ ASX200 (ASX: XJO) index of Australia’s leading businesses with its shares up an incredible 24x from 9 cents to $2.43 over just 5 years. 

For the financial year ending June 30 2019 it posted a loss of $3.19 million on revenue of $13.7 million as it looks to increase the range of applications for its patented polymer technology NovoSorb.

It is commonly used by surgeons to treat burns or laceration victims during remedial surgery. 

Polynovo is currently running what it describes as a “pivotal trial” to assist it in getting US FDA approval for its NovoSorb BTM product for the treatment of burns victims. It appears to be in the early protocol design stage for now but any hint of FDA approval for a biotech tends to set biotech investors’ pulses racing. 

Other speculative biotech businesses currently exciting investors include Mesoblast Limited (ASX: MSB), Next Science Ltd (ASX: NXS), Opthea Ltd (ASX: OPT) and Paradigm Biopharmaceuticals Limited (ASX: PAR).

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

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 Scott Phillips.

Related Articles...

Latest posts by Tom Richardson (see all)