The Polynovo Ltd (ASX: PNV) share price is catching a break today after sliding as much as 26.95% in July.
At the time of writing, shares in the medical devices company are up 2.67% to $2.11.
Polynovo stumbles to a 10-month low
2021 is shaping up to be a miserable year for Polynovo shareholders, with the company’s shares down 46% year-to-date.
The Polynovo share price began struggling in January when the company’s shares tumbled 32% following a disappointing half-year trading update.
The update looked good at face value, highlighting a 31% increase in 1H21 sales against the prior corresponding period.
However, back in November 2020, management said that “we continue to harness this [FY20] momentum to double our revenues again in FY21”.
With an underpromise and overdeliver narrative taking place, brokers were also quick to flag disappointing results that were “well below our forecasts, consensus and management expectations”.
Last Tuesday, Polynovo released a fourth quarter and FY21 market update.
The initial market reaction was positive, with the Polynovo share price rallying 4.62% to $2.49 on the day.
However, over the next three sessions, Polynovo shares would slide 17.27% to a close of $2.06 last Friday.
Bell Potter was quick to criticise Polynovo’s fourth quarter and FY21 update, saying: “Today’s announcement came as a 13% miss vs our expectations – we expected COVID recovery tailwinds would make an impact on sales in the 2H.”
Broader healthcare gains lift the Polynovo share price on Monday
Despite a sea of red for the S&P/ASX 200 Index (ASX: XJO), the healthcare sector is picking up the slack with gains across the board.
There has been broad buying across the healthcare sector, with names including CSL Ltd (ASX: CSL), Sonic Healthcare Ltd (ASX: SHL) and Resmed CDI (ASX: RMD) rallying 2.34%, 1.61% and 2.64% respectively.
While the Polynovo share price has joined in on the rally today, it has a lot of catching up to do.