Polynovo Ltd (ASX: PNV) shares are on the move on Monday morning.
At the time of writing, the ASX 300 stock is up 6% to $1.28.
Why is this ASX 300 stock jumping?
Investors have been buying the medical device company's shares following the release of first half results update before the market open.
According to the release, PolyNovo has reported unaudited group sales of $68.2 million for the first half of FY 2026, which represents a 26% increase year on year. Including BARDA revenue, total group revenue reached $70.4 million, up 17.6% on the prior corresponding period.
The result was once again underpinned by PolyNovo's largest market, the United States. The ASX 300 stock revealed that U.S. sales climbed 25.3% to $51.7 million, reflecting continued adoption of its NovoSorb products across hospital settings.
Outside the U.S., the momentum was equally encouraging. Rest-of-world sales rose 28.3% to $16.5 million, supported by particularly strong performances in Australia, Canada, Germany, Ireland, and Turkey. This broad-based growth highlights the increasing global penetration of PolyNovo's wound care solutions.
Another highlight was the performance of the NovoSorb MTX product. It delivered sales of $6.2 million during the half, which is up 195% year on year. While still smaller than the flagship NovoSorb BTM product, MTX is emerging as an increasingly important contributor as surgeon adoption accelerates.
Positive cash flow
Just as importantly, PolyNovo's financial profile continues to strengthen. The ASX 300 stock generated operating cash flow of $9.5 million during the half. This is a sharp turnaround from the $12.5 million outflow recorded in the prior corresponding period.
Cash and cash equivalents stood at $29.3 million at the end of December.
Management also advised that construction of the new manufacturing facility has been completed on time, with only $2.2 million of capex remaining to be paid in the second half. This facility is expected to provide capacity to support growth for years to come.
Commenting on the half, the ASX 300 stock's new CEO, Bruce Peatey, said:
We are pleased to see strong growth across key markets, supported by a broader adoption across multiple indications, new products, and expanded geographies—giving us confidence in continued momentum through 2026. In my second month, I prioritised a commercial deep dive in our U.S. office, meeting with leadership and regional sales teams in our San Diego office last week. I was impressed by the caliber and commitment of this well-tenured team and left with an optimistic view of PolyNovo's runway for sustained growth in our largest market.
Peatey spoke positively about the company's outlook in the US market. He adds:
The U.S. skin substitute market in the Outpatient and Non-Facility settings is undergoing significant transformation due to recent CMS policy changes, and PolyNovo is supportive of efforts to deliver efficient and effective outcomes for patients. While the changes are not expected to impact our existing hospital inpatient business, the outpatient setting presents a new space for PolyNovo and our U.S. team is actively reviewing our go-to-market approach in response.
PolyNovo remains committed to providing highly effective, cost-efficient options that improve patient outcomes and reimagine the standard of care. Looking ahead, we believe these initiatives, combined with expanding adoption of the NovoSorb platform, position PolyNovo for continued growth and innovation.
