Polynovo Ltd (ASX: PNV) shares were having a tough day before being halted this afternoon.
The medical device company's shares were down almost 3% to $1.45 before the halt.
Why are Polynovo shares in a trading halt?
According to the release, the company has requested that its shares be halted from trade until the earlier of the release of an announcement or the commencement of trade on Thursday.
What is the announcement, I hear you ask? Well, the request states that the announcement relates to the company's revenue performance.
More often than not, a mid-session trading halt is not a good thing and what follows is a company revealing that its sales performance is below expectations. Invariably, this then means a selloff ensues and a share price tumbles deep into the red.
However, there is reason to believe that this could be a positive update, which could be great news for Polynovo shares.
That's because the company has done this before (just last month with good new following) and late last month, one of the company's rivals announced a major product recall.
As our colleagues across the Pacific reported, last month Integra LifeSciences initiated a global recall of all SurgiMed, PriMatrix, Revize, and TissueMend surgical tissue products made at its Boston, Massachusetts facility that were distributed between March 2018 and May 2023.
Integra LifeSciences made the decision after an internal investigation found that products could have been distributed with higher levels of endotoxins than allowed. These endotoxins can cause an immune response.
Could this have opened the door to Polynovo? It seems plausible that this could be the case given the similarities in their offerings.
The company's NovoSorb BTM product is a biodegradable temporising matrix that helps regenerate new tissue for wound closure and reconstruction of complex wounds. It also has the new BTX product that has been shown to support the rapid in-growth and deposition of healthy vascularised tissue.
