The PolyNovo Ltd (ASX: PNV) share price has galloped out of its trading halt after the company announced its first sales of a new product and bumper revenue in March.
The PolyNovo share price hit a high of $1.82 shortly after trading resumed, up 11.65% on yesterday's closing price.
The ASX healthcare share has since pulled back a little to $1.76, up 7.98%.
Let's take a look at the details.
What's the news pushing the PolyNovo share price higher?
The medical device company's new product is an advanced wound care treatment called NovoSorb MTX.
It received approval from the United States Food and Drug Administration in September 2022.
PolyNovo announced it has sold the new treatment to two hospitals in the US. It said its first sales had "occurred faster than expected".
PolyNovo is an Australian company that designs, develops, and manufactures dermal regeneration
solutions (NovoSorb BTM) using its patented NovoSorb biodegradable polymer technology.
It created NovoSorb MTX in response to feedback from clinicians, who told them some wounds don't require the sealing membrane contained in the primary product, NovoSorb BTM.
NovoSorb MTX simplifies wound management and has wider applications for common wound-healing problems.
PolyNovo now expects to sell both products to clinicians in the future.
The company says NovoSorb MTX expands its addressable US market by an estimated AU$500 million.
NovoSorb MTX is indicated for use in partial and full-thickness wounds, pressure ulcers, venous ulcers, chronic and vascular ulcers, diabetic ulcers, and surgical and trauma wounds.
What did management say?
PolyNovo Chair David Williams said:
I often refer to PolyNovo as taking baby steps on an upward evolving sales trajectory responding to the untapped indications that surgeons have found for it and an evolving response to large untapped markets such as India, Japan, and China.
NovoSorb MTX gives us the opportunity to take a big step forward.
What else did PolyNovo announce today?
PolyNovo also announced revenue numbers for the month of March.
The company revealed unaudited revenue of $6.4 million in March. This is up 48.2% on the March 2022 revenue of $4.3 million.
During the month, the company achieved record sales of NovoSorb BTM worth $5.45 million.
Sales revenue (unaudited) for the nine months to 31 March 2023 now totals $41.1 million. This is a 49.8% boost compared to the prior corresponding period.
Since the start of the year, the company has gained 26 new hospital customers in the US, three in Canada, and three in Hong Kong.
In India, PolyNovo has trained its sales staff and deployed them to the regions, with the first sale already recorded.
Williams said:
Sales will be lumpy for some time, but the trajectory is clear, and we see exciting times ahead in multiple jurisdictions.
We believe the quick first sales we have had in India, Canada and Hong Kong are a good indicator of early adoption by surgeons.
PolyNovo share price snapshot
The PolyNovo share price is up 87% over the past year.
It has vastly outperformed the S&P/ASX All Ordinaries Index (ASX: XAO), which is down 1.3% over the same period.
