Why the Polynovo (ASX:PNV) share price is edging higher today

The company making progress in the clinical study…

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The Polynovo Ltd (ASX: PNV) share price is climbing during mid-afternoon trade following a burn study update from the company.

At the time of writing, the medical device company's shares are up 1.57% to $1.94.

high, climbing, record high

Image Source: Getty Images

What did Polynovo announce?

According to the release, Polynovo advised that it has enrolled its first patient in the United States-based Biomedical Advanced Research and Development Authority (BARDA) funded burn study.

The trial spans across 20 United States and 5 Canadian burn centres for the clinical study of NovoSorb BTM. Polynovo aims for its NovoSorb BTM to be used as a standard of care in burn patients. Up to 150 people are to be enlisted.

It is estimated that the study will be completed in around 3 years, with BARDA funding $15 million towards the trial.

Polynovo managing director, Paul Brennan said:

This is an exciting milestone in a trial that when concluded will generate data to support a premarket approval application with the US FDA for an on-label claim supporting the use of NovoSorb BTM in full thickness burns. This will bring our US market in line with global markets where this claim is already established.

What is NovoSorb BTM?

NovoSorb BTM (Biodegradable Temporising Matrix) is a biodegradable synthetic polymer that is used to treat burns and other serious skin wounds. The polymer is applied to the trauma site of the skin, whereby the body begins the regeneration process in building new tissue. Eventually, the polymer is absorbed and excreted, leaving only biological material behind.

Polynovo share price summary

Over the past 12 months, Polynovo shares have lost around 10% in value. However, when looking at year-to-date alone, those losses are magnified by roughly 50%.

The company's share price closed at a 52-week low of $1.91 yesterday. A far contrast from when its shares were trading above $4 in December 2020.

Based on today's price, Polynovo presides a market capitalisation of about $1.28 billion and has approximately 661 million shares outstanding.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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