PolyNovo Ltd (ASX: PNV) shares have returned from their trading halt with a bang on Tuesday.
In afternoon trade, the ASX 200 stock is up 16% to $1.70.
Investors have been buying the medical device company's shares following the release of some big news that could mark a major turning point in the company's future.
What did the ASX 200 stock announce?
The afternoon, PolyNovo announced a breakthrough in the application of its NovoSorb technology. However, this time it is not in wound care, but in the treatment of Type 1 diabetes (T1D).
According to the release, NovoSorb has shown promising results as a delivery platform for pancreatic islet cell transplants in a "first in human" proof-of-concept study led by Professor Toby Coates AO of Beta Cell Technologies.
In the trial, three patients with long-standing T1D who had previously received kidney transplants were treated with islet cells implanted within NovoSorb's vascular matrix within the skin, rather than inside the liver — the current standard of care.
Remarkably, one patient is now three years post-implant and maintaining normal blood sugar levels without the need for additional cells.
Commenting on the news, Professor Coates, said:
Our results are the culmination of the past 10 years of research and development using the NovoSorb technology and islet cells in rats and pigs and now in a first in human study. For the first time we report both 3-year survival and function of human pancreatic islets transplanted within the NovoSorb BTM site outside of the liver. The results show an exciting new opportunity for the NovoSorb technology in cell therapies as a delivery vehicle.
The release notes that 75% of cells are lost in the first 48 hours using the standard of care treatment. However, the ASX 200 stock's NovoSorb product's unique properties support the cells. Prof Coates adds:
PolyNovo's NovoSorb has some unique properties such as its ability to create a vascular bed capable of supporting the cells and, as the islet grafts are held within the NovoSorb matrix, the cells can be easily located and monitored in vivo. Additionally, the NovoSorb matrix properties enable the use of topical immune suppression which could be potentially 'topped up' easily if needed.
'Red letter day'
The ASX 200 stock's chair, David Williams, was very pleased with the news and believes it could open up a major opportunity for the company. He said:
I have been closely following the research undertaken by Beta Cell at the invitation of Professors Coates and Greenwood (who was instrumental in the invention of NovoSorb BTM) for the last three years. These are very exciting results, and a red letter day potentially creating a new and distinct silo for the PolyNovo business; one in Wound Care and related uses, and another in Cell Delivery.
The release notes that PolyNovo and Beta Cell are in collaboration discussions to accelerate research and development pathways to ensure that this technology can play a major role in the cell therapy market space which is estimated to be US$34 Billion by 2034.
