PolyNovo Share Price Up as Study Results Encourage Market (ASX:PNV)

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After an initial fall in line with the COVID-19 influence on the ASX 200 [XJO], the PolyNovo Ltd [ASX:PNV] share price shot up 66.27% from its low to close at $2.12, at the time of writing.

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

ASX PNV - PolyNovo Share Price Chart 1

Source: Optuma

On 16 March, PolyNovo announced to the ASX that it had:

Submitted their Feasibility trial results to US FDA but could not release the results until they had been reviewed by the FDA. These can now publicly release the summary of the results from this BARDA funded burn trial.’

The announcement continued…

PolyNovo is pleased to share the summary of results for the CP-002 Feasibility Study to assess the safety and effectiveness of NovoSorb® Biodegradable Temporizing Matrix (BTM) in the treatment of severe skin burn injuries. This trial was a prospective, multicentre, single-arm, open label, traditional feasibility study conducted in the USA, where NovoSorb® BTM was used under an FDA Investigational Device Exemption (IDE).’

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The result

The company was clearly enthused, with CEO Mr Paul Brennan stating:

These results are outstanding. Not only has NovoSorb BTM integrated well, the take of the split skin grafts and closure of these wounds is remarkable. Burns are often contaminated so seeing infections within this cohort is not unusual.

What is unusual is seeing the Matrix continue to integrate and later for the skin graft to take to the matrix with an excellent clinical and cosmetic outcome.

The health economics of this success is a strong selling message for us and in the forthcoming Pivotal trial gathering hard health economic data will add to our armoury and success.’

Looking forward, what’s in store for the PNV share price

On 7 April, PolyNovo sales were 166% up in the March quarter versus last year, to go with the encouraging results from its trials in the US.

On the charts, the PolyNovo share price has rocketed up from the low in March of $1.27. Currently hovering around a historical resistance level of $2.17. Should PolyNovo continue its run up, levels of $2.38 and $2.65 may come into focus.

ASX PNV - PolyNovo Share Price Chart 2

Source: Optuma

It’s important to remember that since starting out as a speculative small-cap with a breakthrough product, PolyNovo is now a relative heavyweight.

Listed on the ASX 200, ASX ETFs are obliged to purchase its shares as part of their holdings.

This means that going forward, you may start to see PNV shares move more with the market.

So despite the recent run up the charts, there could be another leg down for the PolyNovo share price before continuing its ascent.

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Carl Wittkopp,
For Money Morning

About Carl Wittkopp

Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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