The PolyNovo Ltd (ASX: PNV) share price is having a stellar day on Thursday.
In early afternoon trade, the medical device company's shares are up 13% to $1.66.
Why is the PolyNovo share price rocketing higher?
Investors have been bidding the PolyNovo share price higher today after the company released a strong trading update.
According to the release, PolyNovo achieved its first ever $5 million sales month during September. This underpinned record first quarter sales of $12.5 million, which is an increase of 73.3% over the prior corresponding period.
The key driver of the company's growth was its US business, which reported record quarterly sales of $10.4 million. This was up 71.3% over the prior corresponding period and driven by a 61.3% increase in constant currency sales and favourable exchange rates.
Also supporting PolyNovo's growth was an 84% increase in rest of the world (ROW) sales to $2.1 million.
No details were provided on margins or profitability.
Management commentary
PolyNovo's chairman, David Williams, was pleased with the company's performance during the quarter. He said:
By focusing on hiring the right talent and expanding our commercial footprint, we are confident of building a Global leader in Soft Tissue Regeneration based in Australia. However, while the growth trajectory is clear and exciting, month to month sales are still lumpy.
The company's chief executive officer, Swami Raote, echoed this sentiment. Raote said:
Our results are a vindication of surgeon recognition of consistent outcomes, better patient experience along with hospital systems acknowledgement of lower complexity and cost associated with NovoSorb BTM. I am pleased with how our teams are now beginning to translate our burn heritage and supremacy into trauma and other acute surgical soft tissue reconstruction opportunities. PolyNovo has always been focused, responsible and capital efficient in delivering results and I look forward to accelerating our global impact.
