Monday was a day to forget for the Polynovo Ltd (ASX: PNV) share price. Shares in the Aussie biotech company finished 4.3% in the red at a new 52-week low of $1.91 per share.
Unfortunately for shareholders, 2021 has been a year of consistent declines for Polynovo’s valuation. So, what’s driving the recent share price moves, and what is on the horizon for the company?
What’s up with the Polynovo share price?
There were no new announcements from Polynovo but that didn’t stop the losses on Monday. That’s largely because the broader market was smashed as investors feared the knock-on effects of Chinese property giant Evergrande‘s current struggles.
The S&P/ASX 200 Index (ASX: XJO) slumped 2.1% lower on Monday and the Polynovo share price was far from immune. Troubles in China are clearly not good news for the broader global economy nor those companies that have a lot of future growth already priced in.
However, leaving Evergrande aside, the Polynovo share price has been sliding lower throughout the year. In fact, shares in the Aussie biotech are down 51.4% since the start of the year to $1.91 per share.
That’s despite what appeared to be a strong financial result for the year ended 30 June 2021 (FY21). Polynovo reported a 32% jump in revenue to $29.3 million with strong growth in the United States and Europe.
Polynovo’s net loss after tax of $4.6 million including non-cash items and the result as a whole fell short of market expectations and couldn’t spark the Polynovo share price higher.
The company also announced the departure of chief operating officer Dr Anthony Kaye, on September 10. Dr Kaye has taken up a more senior role with fellow Aussie biotech, CSL Limited (ASX: CSL).
All in all, 2021 has not been a good year for the Polynovo share price. However, shares in the company had been surging higher in recent years before the 2021 pullback.
Investors will be hoping strong research and development results and continued product development can turn around the company’s valuation in the near term.