The Polynovo Ltd (ASX: PNV) share price has not had a good time of it recently.
In the past 3 weeks, shares in the medical device company have tumbled more than 15%.
Let's take a look at why investors have been dumping Polynovo shares.
What's weighing down the Polynovo share price?
The Polynovo share price has had a shocking year thus far.
The pain has continued for shareholders in the last 3 weeks as shares in the biotech continue their slide.
Despite the bearish price action, Polynovo has been scarce with price-sensitive news.
Most recently, the company made headlines after announcing the commencement of its Biomedical Advanced Research and Development Authority (BARDA) funded burn study in the United States.
Shares in Polynovo were given a brief reprieve as the company pursued FDA approval for its NovoSorb BTM product.
In addition, the resignation of the company's chief operating officer, Dr Anthony Kaye, has also weighed on its shares.
However, much of the bearish sentiment towards the Polynovo share price can be traced back to its full-year report.
How did Polynovo perform in FY21?
Shares in Polynovo tanked late last month, despite releasing fairly robust results for FY21.
The biotech's report was highlighted by a 32% increase in total revenue of $29.3 million.
Other highlights from Poynovo's full-year report included:
- Distributor sales grew by 53% over the year
- Gross margin increased by 3% from "manufacturing efficiency gains"
- Corporate and overhead expenses increased by 10% as the business expanded
- Net profit after tax of $260,000 when adding back in non-cash items
- Achieved breakeven in FY21
Polynovo flagged strong results in FY22 in all of its markets, including the United States, Europe, United Kingdom, Middle East, Asia, Australia, and New Zealand.
However, investors did not seem impressed with the report, inflicting more selling pressure on the Polynovo share price.
Snapshot of the Polynovo share price
The Polynovo share price jumped off a cliff to start the year.
Shares in the Aussie biotech fell hard and fast in the early months of 2021 following a dour first-half report.
As a result, Polynovo shares have more than halved since the start of the year.
At the time of writing, shares in the biotech have continued their fall, trading more tan 2% lower for the day.
