The PolyNovo Ltd (ASX: PNV) share price is on the rise on Wednesday morning.
At the time of writing, the medical device company’s shares are up 13% to $1.22.
Why is the PolyNovo share price on the move?
Investors have been bidding the PolyNovo share price higher following the release of a third quarter update.
According to the release, PolyNovo delivered unaudited revenue of A$12.26 million during the third quarter of FY 2022. This represents a 59.3% increase on the revenue of A$7.69 million reported during the prior corresponding period.
This reflects a 79.4% increase in US sales to a record US$6.89 million (A$9.53 million) and an 81.9% lift in ANZ sales to A$1.16 million. It also includes income of A$1 million relating to BARDA and A$0.1 million from a Victorian State Government grant.
This means that PolyNovo’s year to date revenue is now A$30.4 million, which implies an annual run rate of A$48 million.
PolyNovo’s Chair, David Williams, explained that this result was driven by an increase in its salesforce and easing COVID-19 headwinds.
He said “More sales reps equals a wider geographical footprint and increased sales. More reps and the diminishing effects of Covid, have driven record sales in US, UKI and Australia.”
One thing that has been weighing on the PolyNovo share price this year has been concerns over its dwindling cash balance and the potential requirement of a capital raising in the near future.
Positively, the heavily shorted company’s cash balance increased during the third quarter even before taking into account the sale of its Lorimer Street property.
At the end of March, PolyNovo had cash of A$3.8 million, which was up A$0.5 million since the end of December. This will soon be boosted by a further A$6.35 million from the Lorimer Street property sale when the process completes in June.
Finally, management advised that its clinical trial programmes remain on track. This includes recruitment for the pivotal burn trial and enrolment of the first patients for the DFU trial.
PolyNovo is also on track to file for the 510K approval for the Matrix product during this financial year and work on the prototypes for Hernia development and new designs for BTM are also on track.