Polynovo share price skyrockets 27% following ‘watershed’ moment
As PolyNovo’s stock continues to rise, we examine the key driver behind this bullishness.
Polynovo share price in focus
It’s funny the impact that just a few paragraphs can have on a company’s fortunes.
Aptly designated as a price sensitive release, news that Polynovo’s (ASX: PNV) NovoSorb BTM had been granted a certificate of conformance – sent the share price of the now $1.28bn tech-focused healthcare company up as much as 27%.
Though the stock has pulled back somewhat since that initial spike, it still trades around 16% ahead of where it did prior to these favourable regulatory developments.
Centrally, this freshly minted certificate of conformance will give PolyNovo the green light to sell its NovoSorb BTM product throughout the UK, Ireland and the European Union.
Looking at the specifics of the NovoSorb BTM product, the company describes it as 'patented bio-restorable polymer technology for use in medical devices and implants.' This ground-breaking product can be used to assist with: full thickness burns, reconstruction and wide excisions surgery, revision of scars and trauma – among other uses.
Speaking of the significance of these approvals, the company's Chief Executive Officer, Paul Brennan said:
'This is watershed moment for PolyNovo. Our global regulatory approvals have expanded significantly with this certification. Our early preparedness in UK/Ireland and DACH should mean a shortened timeline to booking our first sale.’
The Company's Chairman – David Williams – further said:
'We are confident we will have early sales in the UK/Ireland and in Germany through PMI. We will now quickly expand our direct sales force in other parts of the EU.'
Comments like this – as well as the favourable regulatory news itself – likely contributed to the bullish investor activity around the stock.
Moving forwards, and a little backwards
News of these positive regulatory developments build on the success of the company's recent AGM – held last month.
As part of this AGM, PolyNovo’s Chairman – David Williams – said:
'My confidence for the financial year ahead comes from significant increase in sales and market penetration. It also comes from hearing leading surgeons clearly articulate our value proposition on why BTM offers advantages over incumbent biologics, and seeing the patient outcomes where they return to their lives without the long term restrictions imposed by alternatives to BTM.'
Indeed, in the first-half of FY19 the company's sales came in at $3.7m. By the end of FY19, they had risen significantly, hitting $9.3m.
In-step with this, over the last 12-months (TTM) the Polynovo (ASX: PNV) share price has gained approximately 242%. And ultimately, beyond the fundamentals, there is a lot to like about Polynovo.
The company is after all, pursuing a worthy cause: 'our product is life changing and lifesaving,' says PolyNovo.
The PolyNovo share price rose a further 3% today, finishing the session at $2.00 per share.
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