The PolyNovo Ltd (ASX: PNV) share price was one of the best performers on the S&P/ASX 200 Index (ASX: XJO) in 2020.
Over the 12 months, the medical device company's shares almost doubled in value with a 97% gain.
Why did the PolyNovo share price rocket higher in 2020?
A series of positive announcements by PolyNovo during 2020 helped drive its shares higher.
One of those was the announcement of its full year results for FY 2020. Which, despite the COVID-19 pandemic, saw the company double its NovoSorb BTM sales revenue to $19.1 million.
This was driven by strong growth in all markets, but particularly in the United States. The company's US business delivered a record quarterly sales result in the March quarter and then followed it up with a 36% increase in sales compared to the prior corresponding period during the June quarter.
Management advised that it has been building a solid revenue base in trauma, reconstructive surgery, hand surgery, necrotising fasciitis, and general surgery. Its Burn sales are also strong, with significant account penetration in accredited burn centres in all regions.
Though, this is still only scratching at the surface of its current addressable market of $1.5 billion. Furthermore, it is worth noting that management is seeking to expand the usage of the product, which would lift its addressable market to a total of $7.5 billion if successful.
What else drove the PolyNovo share price higher?
Another major catalyst was an announcement in November which revealed that the United States Food and Drug Administration (FDA) has approved the pivotal trial IDE for NovoSorb BTM for the treatment of full thickness burns.
This authorisation meant PolyNovo could begin patient recruitment, once various hospital Independent Review Boards grant approval.
Recruitment is expected to start in early 2021 and conclude around the end of 2023. This program is being supported by Biomedical Advanced Research and Development Authority (BARDA) funding of $150 million.
Also giving its shares a lift was another announcement that month which revealed its entry into Belgium, Netherlands, Luxemburg (Benelux), and Sweden. This was achieved through an extension of its partnership with PolyMedics Innovations in Germany.
Management explained that PMI has been an excellent partner for it in Germany, Switzerland, and Austria. Sales in these markets are exceeding projections to date and are showing signs of further growth.
PolyNovo's Managing Director, Paul Brennan, commented: "We are very pleased to extend our partnership with PMI. They are an excellent sales organisation with very good relationships with surgeons not only in DACH (Germany, Austria, Switzerland) but also in Sweden, Belgium and the Netherlands."
Investors appear optimistic this could be supportive of further strong sales growth in FY 2021. They won't have to wait long to find out if this is the case, with PolyNovo's half year results due to be released next month.
