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

The company making progress in the clinical study…

| More on:
high, climbing, record high

Image Source: Getty Images

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.

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.

Should you invest $1,000 in Polynovo right now?

Before you consider Polynovo, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Polynovo wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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.

More on Share Market News

A group of people in suits watch as a man puts his hand up to take the opportunity.
Blue Chip Shares

2 ASX blue-chip shares this top fund manager thinks are good value

Wilson Asset Management offers its thoughts on a couple of blue-chip shares.

Read more »

Illustration of men and women pushing share price graph up
Share Market News

Why are ASX 200 shares rebounding on Friday?

China's COVID-zero policies have slowed its economic growth and impacted its trading partners.

Read more »

Boy looks quizzical standing in front of a graph.
Share Market News

Here are the 3 most traded ASX 200 shares on Friday

We take a look at the most traded ASX 200 shares by volume today.

Read more »

A man in a suit smiles at the yellow piggy bank he holds in his hand.
Bank Shares

What’s moving the CBA share price higher this week?

Australia's banks are expected to reap higher profits as the RBA increases the official cash rate.

Read more »

a woman in a wheelchair sits at her desk in her home with headphones on and looking at a computer screen of figures. monitoring the CBA share price
Share Market News

ASX 200 midday update: BHP, IGO, and Woolworths charge higher

The ASX 200 is ending the week strongly...

Read more »

A woman wearing a pink blouse and straw hat holds up a cannabis leaf with tall green cannabis plants in the background
Cannabis Shares

Remember when ASX cannabis shares were smoking hot? Where are they now?

Newly legalised recreational and medicinal marijuana markets aren't getting the media hype they once did.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Share Market News

5 things to watch on the ASX 200 on Friday

The ASX 200 is expected to have a subdued finish to the week...

Read more »

Top 10 ASX shares today
Share Market News

Here are the top 10 ASX shares today

Here are your top 10 biggest gainers in the ASX 200 on Thursday.

Read more »