The Polynovo Ltd (ASX: PNV) share price could be set to push higher in 2020.
Here's why I see some tailwinds behind the Aussie biotech ahead of its August earnings result.
How has the Polynovo share price performed recently?
The Polynovo share price jumped 0.45% higher yesterday and is now up 21.0% in 2020. That's a strong result given the S&P/ASX 200 Index (ASX: XJO) is down 8.9% over the same period.
However, that performance pales in comparison to Polynovo's 5-year track record. Shares in the Aussie biotech are up 1,945.5% in the last 5 years despite being down 31.4% from their all-time high.
It's been a bullish run in recent years but investors want to know what sort of growth they can expect in the future.
What's been driving these share price moves?
July has been a busy month for Polynovo announcements despite the company's share price falling 14.1% lower.
Polynovo received formal feedback from the United States Food and Drug Administration (FDA) on its Pivotal trial protocol. The Pivotal trial program is assessing the use of NovoSorb BTM in the treatment of full thickness burns.
The FDA has requested further information from the company which Polynovo Managing Director, Paul Brennan, described as 'positive'.
Polynovo also received US$15 million in funding from the Biomedical Advanced Research and Development Authority (BARDA) to support the Pivotal trial program.
The company provided a trading update on 10 July which contained some more positive signs for shareholders. This was highlighted by June 2020 being a new record US sales month for the Aussie biotech company.
Sales for the June quarter climbed 33% compared to the March quarter with FY20 product sales 'likely to at least double FY19'. It's yet another strong milestone that has supported the recent Polynovo share price growth.
There was also a solid breakthrough in the United Kingdom as the company announced its first sale. Positively, there have also been 'numerous applications' of the NovoSorb BTM product across Germany, Austria and Switzerland.
What am I expecting from the August result?
I'm quietly confident about Polynovo's August full-year results.
The strong sales trajectory has been maintained by the company for quite some time now.
Polynovo continues to explore new and innovative applications of NovoSorb BTM. That says to me that there is plenty of potential growth left in the Polynovo share price in 2020.
All in all, I think we'll see some strong earnings numbers next month. That could propel the company's value even higher and fuel further outperformance.
