The Polynovo Limited (ASX: PNV) share price is trading higher today amid a major announcement from the company.
Shares of the medical devices company currently trade for $2.135 each, a 5.69% gain. Earlier today, the Polynovo share price hit an intraday high of $2.20 a share, a rise of 9%
Let's find out why investors are buying Polynovo shares today.
What happened?
Polynovo will receive $500,000 under the Victorian government's Medtech Manufacturing Capability Program.
The company said it will use the funds to buy and upgrade manufacturing equipment for its Novosorb Synpath products which are used in treating diabetic foot ulcers, among other applications.
Polynovo chair David Williams said:
Our SynPath product offers significant health economic and healing benefits over biologic-based products in the treatment and wound closure of diabetic foot ulcers and venous leg ulcers. The much appreciated government grant will support manufacturing the new product at our Port Melbourne plant from where we will ship to the world.
Polynovo share price snapshot
The Polynovo share price is currently up almost 40% year to date.
The company's shares are significantly outperforming the S&P/ASX 200 Healthcare Index (ASX: XHJ) which has contracted 3.3% so far in 2022.
Across the broader market, the company is also beating the S&P/ASX 200 Index (ASX: XJO) year to date — it's down around 6%.
At its current share price, Polynovo has a market capitalisation of around $1.4 billion.
