The PolyNovo Ltd (ASX: PNV) share price has been a strong performer on Tuesday.
The medical device company’s shares raced as much as 12% higher after returning from a trading halt this morning.
They have since pulled back a touch, but are still up 6% to $1.93 at the time of writing.
Why is the PolyNovo share price racing higher?
Just before lunch on Tuesday PolyNovo released a sales update. It did this “to give shareholders a sense of the ramp up and direction of sales.”
According to the release, during the month of December the company had its first $2 million month.
This comes less than a year after PolyNovo achieved its first ever $1 million month in April 2019. Management believes this “gives some feel for the acceleration of sales in the US, Australia and New Zealand.”
Unaudited revenue from NovoSorb BTM sales for the month of December were just over $2 million, up 134% on the prior corresponding period.
This helped lift its unaudited half year revenue to $8.57 million. Which represents a 129% increase on FY 2019’s first half revenue of $3.75 million.
What is NovoSorb?
NovoSorb is a novel range of bio-resorbable polymers that can be produced in many formats. This includes film, fibre, foam, and coatings.
It has unique properties that provide excellent biocompatibility, control over physical properties, and programmable bio-resorption profile.
NovoSorb BTM is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery or burn.
What about the future?
PolyNovo’s CEO, Paul Brennan, appeared to be delighted with the company’s performance and cautiously optimistic on the future.
He 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.”
“The expansion of the US sales team is adding to the sales momentum and we expect to see further acceleration of sales as a result of increased in-territory sales and the wider territory coverage coming from new staff hires. We are appointing more salespeople in the US to drive revenue and we are still actively recruiting,” he added.
David Williams, who is chairman of PolyNovo and Medical Developments International Ltd (ASX: MVP), said: ”We expect an acceleration in sales in the near term with CE approval and now that the UK/Ireland and DACH regions have sales resources, inventory and what we perceive to be a strong latent demand for our product.”
The post PolyNovo share price jumps 12% on strong sales update appeared first on Motley Fool Australia.
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