Polynovo share price falls despite government grant

The Polynovo share price has fallen lower today despite the company's announcement it has received a grant from the Victorian Government.

| More on:

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 has dropped lower in early afternoon trade despite the company announcing it has received a grant from the Victorian Government for its hernia facility. At the time of writing, the Polynovo share price is trading at $2.15, down 2.7% compared to the S&P/ASX 200 Index (ASX: XJO) which is up 0.2% to 5,933.30 points.

piggy bank printed with australian flag

Image source: Getty Images

About Polynovo

The Australian based medical device company specialises in producing biodegradable material that can be used in a variety of physical formats. Its flagship product NovoSorb BTM has been designed to help surgeons treat patients with traumatic wounds.

The company also has a development program covering breast sling, hernia, and orthopaedic applications.

Government funding

Polynovo was awarded a grant from the Victorian Government, Department of Jobs, Innovation and Trade for up to $252,000.

The funding is to support the company in purchasing new equipment and with ongoing construction of a cleanroom facility to manufacture its hernia product, NovoSorb Syntrel. The capital works is expected to be one of the company's primary focuses in FY21.

Furthermore, Polynovo will seek to file NovoSorb Syntrel with the United States Food and Drug Administration (FDA) in June/July 2021. The Aussie biotech plans to enter the US healthcare market in FY22.

Management commentary

Polynovo Managing Director, Paul Brennan said:

We are grateful to the Victorian Government for their support of PolyNovo's investment in local manufacturing capacity. This plant will produce a product that will change the way hernias are managed world-wide. It is a matter of pride that these products will be manufactured in Port Melbourne using Australian technology.

About the Polynovo share price

The Polynovo share price has made a strong comeback of nearly 68% since falling as low as $1.28 in March. For the calendar year to date, the Polynovo share price is up nearly 16%, but down more than 34% from its 52-week high.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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.

More on Share Market News

Three excited business people cheer around a laptop in the office
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Legendary share market investing expert and owner of Berkshire Hathaway, Warren Buffett.
Opinions

3 ASX stocks that look like classic Warren Buffett investments

Here's why I think the Oracle of Omaha be interested in the ASX shares.

Read more »

Two happy shoppers looking at a smartphone together.
Share Market News

Why did ASX 200 retail shares outperform last week?

Wesfarmers, Light & Wonder, Nick Scali, and Temple & Webster shares surged 10% or more.

Read more »

Siblings laying upside down on a couch.
Opinions

2 ASX 200 shares I'd want my kids to own

These are two of my top picks right now.

Read more »

A man sits cross-legged in a zen pose on top of his desk as papers fly around his head, keeping calm amid the volatility.
Share Market News

What $500 a month in ASX ETFs looks like in 10 years

Boring, automatic, and relentless. That's how most everyday wealth actually gets built.

Read more »

A man in a suit looks serious while discussing business dealings with a couple as they sit around a computer at a desk in a bank home lending scenario.
Share Market News

Here's what Westpac says the RBA will do with interest rates next week

Is there another rate hike coming next week? Let's see what Australia's oldest bank is forecasting.

Read more »

A graphic image of a pile of gold coins balanced precariously with a house on top with smoke coming out of the chimney and a human figure with hands up as if to shield himself from the prospect of the house falling.
Broker Notes

This debt collector could surge 47% on negative gearing changes, Shaw and Partners says

A weaker housing market could be a boon for this company.

Read more »

Three young nerds dressed in suits with thinking caps and lightbulbs
Broker Notes

Brokers name 3 ASX shares to buy right now

Let's find out which shares top brokers are feeling bullish about this week.

Read more »