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.
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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.
