The PolyNovo Ltd (ASX: PNV) share price is climbing higher in the early afternoon trade. This comes after the company announced that it will expand its presence into new geographical markets. At the time of writing, the medical device company's shares are up 4.1% to $2.52.
What's driving the PolyNovo share price higher?
PolyNovo shares are running higher after investors appear upbeat about the company's future prospects.
According to its release, PolyNovo advised it will enter the medical device market for Nordic countries, Denmark, Norway, and Iceland. This will be supported by the company's partner, MedinaMedical, who will help distribute PolyNovo's NovoSorb BTM.
MedinaMedical is based in Copenhagen, Denmark, and specialises in reconstruction, complex wounds, and burns. The latest addition is seen as a perfect fit for PolyNovo as it seeks to significantly ramp up its expansion strategy.
In addition, the company noted that there is already a lot of interest in NovoSorb BTM, which could attract significant sales growth.
What is NovoSorb BTM?
NovoSorb BTM (Biodegradable Temporising Matrix) is a biodegradable synthetic polymer. NovoSorb BTM is used to treat burns and other serious skin wounds. The polymer is applied to the trauma site of the skin. Afterwards, the body commences a regeneration process in building new tissue. Eventually, the polymer is absorbed and excreted. Thus, leaving only biological material behind.
What did the managing director say?
PolyNovo managing director, Paul Brennan, hailed the company's step into the new markets. He said:
Our partnership with MedinaMedical completes PolyNovo's coverage of the Nordic region which consist of some of the highest quality healthcare systems in the world. As a percentage of GDP, Nordic countries also have some of the highest healthcare expenditures in the world, and therefore, this is an exciting incremental step in expanding our sales across Europe.
About the PolyNovo share price
Over the last 12 months, the PolyNovo share price has remained relatively flat, up only 4.5%. In comparison, the healthcare sector (ASX: XHJ) has increased by 12.2% in the same time frame.
Based on the current share price, PolyNovo has a market capitalisation of close to $1.66 billion.
