The PolyNovo Ltd (ASX: PNV) share price has been a strong performer on Tuesday.
At the time of writing, the medical device company’s shares are up 13% to $1.62.
Why is the PolyNovo share price jumping?
The rise in the PolyNovo share price today has been driven by the release of its second quarter and first half trading update this morning.
According to the release, during December, PolyNovo achieved record monthly US sales (ex Barda) of A$3.4 million (US$2.43 million). This was an increase of 76% over the prior corresponding period. Combined with strong sales results in October and November, this led to record second quarter US sales of US$2.43 million (US$5.86 million). This is an increase of 105% over the same period last year.
In light of the above, the company expects to report first half US sales of A$14.20 million (US$10.38 million). This will mean first half group sales growth of 45% year on year to A$16.28 million excluding Barda revenue and 43% including Barda revenue to A$18.04 million.
What drove its growth?
Underpinning this growth was the addition of a number of new customer accounts. During the first quarter, the company added 16 new accounts and then followed this up with 19 new accounts in the second quarter. This brought its total US accounts to 154.
Pleasingly, with the company intending to increase the size of the US sales team with a further 10 representatives, management expects to be able to expand its coverage across key cities and regions.
PolyNovo’s Senior VP Sales & Marketing Americas, Ed Graubart, said: “We have recruited top talent and they in turn are transitioning new accounts at a record pace. We have also filled some critical internal positions that allow for a more efficient and effective organisation. The team are buoyed by the strong results and opportunities.”
The company’s Chairman, David Williams, added: “While US sales are very encouraging, there is more to achieve as we still have new sales staff being onboarded and more staff to be employed. In addition, we are retraining existing staff to follow surgeon leads using the product in new indications. While the US is the engine room of our growth in the immediate future, there are many opportunities in the rest of the world where we are just starting out.”