PolyNovo share price soars 12% amid 'exciting times ahead'

Shares in the medical devices developer are up on good news from the company today.

| More on:
Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • PolyNovo has come out of its trading halt this afternoon 
  • The company has announced the first sales of a new product and boosted revenue in March 
  • The PolyNovo share price has vastly outperformed the ASX All Ords over the past 12 months 

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.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PolyNovo. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »