Why the PolyNovo share price has rocketed almost 200% higher in 12 months

The PolyNovo Ltd (ASX:PNV) share price has almost tripled in value in 12 months. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The PolyNovo Ltd (ASX: PNV) share price has been amongst the best-performers on the Australian share market over the last 12 months.

On Monday the medical device company's shares hit a multi-year high of $1.59, which stretched their 12-month return to a remarkable 194%.

What is PolyNovo?

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

NovoSorb is a novel range of bio-resorbable polymers that can be produced in many formats such as film, fibre, foam, and coatings. Its unique properties provide excellent biocompatibility, control over physical properties, and programmable bio-resorption profile.

And its key NovoSorb Biodegradable Temporising Matrix (BTM) product is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery or burn.

Why has the Polynovo share price almost tripled in value in 12 months?

Investors have been scrambling to get hold of the company's shares over the last 12 months thanks to the success of its patented Novosorb wound treatment technology.

In the first half of FY 2019 NovoSorb BTM generated sales of $3.75 million, which was an increase of 319% on the prior corresponding period.

Since then sales have continued to grow strongly. In fact, at the end of last month the company revealed that it had its second $1 million month in a row. This compares to sales of under $0.2 million in May of 2018.

PolyNovo's CEO, Paul Brennan explained "May sales demonstrate that we are continuing to ramp our sales revenues. Further the size mix and order volumes are demonstrating a wide clinical application across trauma and surgical wounds. The May sales do not yet contain any contribution from Israel, South Africa or India."

What else has been happening?

PolyNovo isn't the only high-flying share in the space. Also rising strongly over the last 12 months has been the AVITA Medical Ltd (ASX: AVH) share price which is up 550% over the period.

AVITA is a medical technology company developing regenerative and tissue-engineered products for the treatment of wounds, scars and skin defects. The positive progress of its RECELL system has been the catalyst for its strong share price gain.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »