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.
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