The PolyNovo Ltd (ASX: PNV) share price is charging higher on Tuesday morning.
In early trade, the medical device company’s shares are up 8% to $2.57.
Why is the PolyNovo share price charging higher?
The catalyst for the rise in the PolyNovo share price on Tuesday has been the release of a market update for the fourth quarter and full year of FY 2021.
According to the release, PolyNovo is experiencing increasing revenue momentum in the United States and all other major markets.
In the United States, more than 50% of hospitals are now re-engaging for business. At the same time, the company’s US sales team has been expanded to 36 with 6 new staff trained in the last month. This is expected to allow PolyNovo to expand its geographic footprint and ability to service recently signed Group Purchasing Organisations.
Strong revenue growth in FY 2021
For the three months ended 30 June, US Biodegradable Temporizing Matrix (BTM) revenue came in at a record of US$4.9 million. This led to PolyNovo’s US BTM revenue increasing 49% in US dollars for FY 2021.
Things have been equally positive for the rest of the business, with FY 2021 Distributor revenue coming in 53% higher year on year. This was underpinned by strong increases in the DACH region (Germany, Switzerland, and Austria), further sales in South Africa and India, and good first sales in Finland, Italy, and Taiwan.
Finally, in Australia, its BTM revenue grew 25% in FY 2021 despite challenging COVID lockdowns.
PolyNovo’s Managing Director, Paul Brennan, said: “FY21 has tested our teams with rolling Covid impacts but they responded with dedication and creativity to service customers. We continue to see expansion of sales outside of burns and we have increasing momentum as we head into FY22. I look forward to providing a comprehensive update when we announce our year end result.”
The company’s Chairman, David Williams, is very positive on the year ahead. He added: “I expect FY22 to be very strong financial performance even without a full world-wide recovery from Covid given the current momentum within the business.”
Despite today’s strong gain, the PolyNovo share price is still down 40% in 2021.