This ASX 200 healthcare stock is rocketing 8% following a record month!

Investors are impressed with this update. Here's why.

| More on:
Happy, tablet or doctor in a laboratory with research results or positive feedback after medical data analysis. Smile, vaccine or healthcare worker reading or working on futuristic science innovation.

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

Polynovo Ltd (ASX: PNV) shares are having a great session.

In morning trade, the ASX 200 healthcare stock is up 8% to $2.29.

This means the company's shares are now up approximately 35% since the start of the year.

Why is this ASX 200 healthcare stock rocketing?

Investors have been scrambling to buy the company's shares this morning in response to the release of a very positive trading update.

According to the release, Polynovo had a record month of revenue in April thanks to strong growth across the business.

Polynovo advised that its US business recorded monthly sales of A$6.9 million, which was an increase of 75% on the prior corresponding period.

The Rest of the World business grew almost as quickly. It delivered monthly sales of A$2.4 million, which was an increase of 68.2% over the prior corresponding period. This reflects strong growth in the UK and Ireland, ANZ, Hong Kong, and Germany.

Including a small contribution from BARDA revenue, this ultimately led to PolyNovo achieving record monthly group revenue of A$10.1 million. This represents a 68.6% increase on the same period last year.

The ASX 200 healthcare stock's chair, David Williams, was very pleased with the company's performance and its sales trajectory. He said:

Rest of World sales are very pleasing, coming off a low base. The direction is clear, and with new geographies and new patient applications I couldn't be happier. It's hard to contain my excitement when I see first time orders into Turkey, Abu Dhabi and Ukraine as I think of the lives we are saving.

This sentiment was echoed by the company's CEO, Swami Raote. He said:

We are grateful for the manner in which clinicians are helping us with insights, innovation, education and adoption beyond difficult burns to other areas in plastic and reconstructive surgery. Our global impact continues to accelerate, with 42,000+ patients treated across 39 countries.

What is PolyNovo?

PolyNovo is a medical device company focused on advanced wound care that designs, develops, and manufactures dermal regeneration solutions. These solutions are developed using its patented NovoSorb biodegradable polymer technology.

The key NovoSorb BTM product is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery, trauma or burn.

It is a novel range of bio-resorbable polymers that can be produced in many formats including film, fibre, foam, and coatings. The ASX 200 healthcare stock notes that its unique properties provide excellent biocompatibility, control over physical properties, and a programmable bio-resorption profile.

Based on today's sales update, it seems to be growing in popularity with end users.

Motley Fool contributor James Mickleboro 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

Research, collaboration and doctors working digital tablet, analysis and discussion of innovation cancer treatment. Healthcare, teamwork and planning by experts sharing idea and strategy for surgery.
Healthcare Shares

Buy, hold or sell these 3 ASX 200 healthcare shares: Experts

These experts reveal their calls on CSL, Resmed and Sonic Healthcare shares today.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Share Gainers

Guess which ASX healthcare stock just exploded 63% on Federal budget funding news!

Investors are bidding up the ASX healthcare stock amid extra funding in the Federal budget.

Read more »

two doctors smile as they sit together at a desk looking at a patient's Xray.
Healthcare Shares

This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy?

The valuation of this high-performer has soared.

Read more »

A smiling woman sits in a cafe reading a story on her phone about Rio Tinto and drinking a coffee with a laptop open in front of her.
Healthcare Shares

1 magnificent ASX stock down 10% to buy and hold forever

Analysts say this high-quality stock is a great option for investors right now.

Read more »

ventilator mask
Healthcare Shares

3 reasons ResMed shares 'are just too cheap!'

This stock could still produce healthy gains, according to one fund manager.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

2 ASX healthcare shares rocking higher on big news

This 'spray-on skin' company and cancer-fighting biotech have exciting news for shareholders today.

Read more »

Scientists working in the laboratory and examining results.
Healthcare Shares

Insider still buying Mesoblast shares despite 230% rise this year: Should you buy?

This high-flying share is still reporting insider buying. Should you buy too?

Read more »

A woman reclines in a comfortable chair while she donates blood holding a pumping toy in one hand and giving the thumbs up in the other as she is attached to a medical machine to collect her blood donation.
Healthcare Shares

Buy CSL shares for growing dividends and 'compelling long-term tailwinds'

CSL has increased both its interim and final dividend every year since 2021.

Read more »