Why The Polynovo Ltd (ASX: PNV) Share Price Is Up 12%


Companies and indices mentioned:


Shares in Polynovo Ltd (ASX: PNV) have rocketed out of a trading halt this morning by more than 12%. Here’s what you need to know.

About Polynovo Ltd

PolyNovo is an Australian medical device company that designs, develops, and manufactures dermal regeneration solutions using its patented NovoSorb biodegradable polymer technology. 

Its current product is NovoSorb BTM (Biodegradable Temporising Matrix), a wound dressing intended for treatment of full-thickness wounds and burns where the dermal structure requires a split-thickness skin graft for final closure.

What’s Happened?

PolyNovo shares were placed in a trading halt minutes before market open this morning, pending an announcement.

This announcement came at around midday today and was in relation to what the company has dubbed its ‘Two Million Dollar Month’. Revenue from NovoSorb BTM sales, unaudited, for the month of December 2019 surpassed $2 million for the first time ever.

For comparison, the company’s first $1 million dollar month was announced in early May 2019. This gives some indication to the acceleration of sales in the US, Australia and New Zealand.

Commenting on this latest announcement, PolyNovo CEO Paul Brennan said, “We are pleased with the sales trend. However, as a word of caution sales will continue to be lumpy as new sales staff are added and new territories opened up and because of natural disasters such as fires and volcanoes.”

What Happens Next?

While this seems positive, it’s important to keep in mind that PolyNovo is a company currently valued by the market at over $1 billion. That compares to sales of $2 million a month. Obviously, investors are placing a lot of emphasis on the company’s potential future growth.

The PolyNovo share price was last trading 12% higher at $2.04.

Finance & Investing Courses

Want to take your knowledge to the next level? Try one of our free or premium courses in finance, budgeting or investing today.

Whether you’re starting your journey, want confidence in what you’re doing, or hope to push your skills to the next level, we’ve got you covered.

Browse your course and enrol today!

3 stocks to own in July 2020...

Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).

While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.

That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!

Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.

Our report is 100% free and unlocks hundreds of hours of bonus content.

Simply click here to access the report.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.