Polynovo share price falls despite government grant

The Polynovo share price has fallen lower today despite the company's announcement it has received a grant from the Victorian Government.

| More on:

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 dropped lower in early afternoon trade despite the company announcing it has received a grant from the Victorian Government for its hernia facility. At the time of writing, the Polynovo share price is trading at $2.15, down 2.7% compared to the S&P/ASX 200 Index (ASX: XJO) which is up 0.2% to 5,933.30 points.

piggy bank printed with australian flag

Image source: Getty Images

About Polynovo

The Australian based medical device company specialises in producing biodegradable material that can be used in a variety of physical formats. Its flagship product NovoSorb BTM has been designed to help surgeons treat patients with traumatic wounds.

The company also has a development program covering breast sling, hernia, and orthopaedic applications.

Government funding

Polynovo was awarded a grant from the Victorian Government, Department of Jobs, Innovation and Trade for up to $252,000.

The funding is to support the company in purchasing new equipment and with ongoing construction of a cleanroom facility to manufacture its hernia product, NovoSorb Syntrel. The capital works is expected to be one of the company's primary focuses in FY21.

Furthermore, Polynovo will seek to file NovoSorb Syntrel with the United States Food and Drug Administration (FDA) in June/July 2021. The Aussie biotech plans to enter the US healthcare market in FY22.

Management commentary

Polynovo Managing Director, Paul Brennan said:

We are grateful to the Victorian Government for their support of PolyNovo's investment in local manufacturing capacity. This plant will produce a product that will change the way hernias are managed world-wide. It is a matter of pride that these products will be manufactured in Port Melbourne using Australian technology.

About the Polynovo share price

The Polynovo share price has made a strong comeback of nearly 68% since falling as low as $1.28 in March. For the calendar year to date, the Polynovo share price is up nearly 16%, but down more than 34% from its 52-week high.

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. 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 Market News

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a lacklustre end to the trading week this Friday...

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Broker Notes

2 ASX 200 stocks that could rise 50%

Morgans thinks the market is undervaluing these shares.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Technology Shares

I was going to buy these ASX tech stocks. Now, I'm not so sure

When the facts change, so should our buying...

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Brokers name 3 ASX shares to buy right now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Dollar sign in yellow with a red falling arrow in front of a graph, symbolising a falling share price.
Broker Notes

6 ASX 200 shares downgraded by brokers this week

Brokers have reduced their ratings on TechnologyOne, Macquarie, 4DMedical, and others this week.

Read more »

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.
Share Gainers

3 ASX 200 stocks storming higher in this week's sinking market

Investors sent these three ASX 200 stocks surging in this week’s tumbling market. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why Brainchip, Fortescue, IGO, and Life360 shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

Five happy friends on their phones.
Share Market News

Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday

Fortescue, PLS and Newmont shares are grabbing investor interest on Friday. But why?

Read more »