PolyNovo share price surges 25 per cent as US sales boom to record levels
Skin-graft biotech PolyNovo’s share price has soared 25.2 per cent as sales in its key US ‘engine room’ market climb to record levels.
Skin-graft biotech PolyNovo is experienced record trading in its key US ‘‘engine room’’ market but other focus regions were patchy in the six months to December.
The Melbourne-based company said group sales for the six months to December had surged to a high of $16.3m – up 45 per cent on the same time last year.
The figure increased by 43 per cent from the same period last year to $18.1m after including revenue from the US-based Biomedical Advanced Research and Development Authority (Barda), which has been supporting a trial of its synthetic dressing product, NovoSorb BTM, and its FDA approval process since July 2020.
Excluding Barda, US sales for December hit a record $US2.4m ($3.4m) for PolyNovo, which was up 76 per cent on the same time last year. It was also the first time US sales had exceeded the $US2m benchmark.
PolyNovo said for the second quarter to December, US sales result also set a new benchmark of $US5.86m, which was up 105 per cent on the same quarter last year.
The company also reported first-half US sales of $US10.4m, up 58 per cent on the same time in 2020.
The company’s growth was well received by investors, with shares in PolyNovo ending Tuesday 25.2 per cent higher at $1.79 per cent.
The impressive surge saw the company the top performing stock on the ASX, ahead of Alumina (up 3.9 per cent), Regis Resources (3.8 per cent), PointsBet (3.5 per cent) and Magellan Financial (2.7 per cent).
The share price in PolyNovo, which has a $1.18bn market cap, is now back to where it was on November 4 – the day before former managing director and CEO Paul Brennan unexpectedly resigned.
Max Johnston has stepped into the interim CEO position until a formal replacement in found.
During the first quarter, the company added 16 new accounts and then followed this up with 19 new accounts in the second quarter. This brought its total US accounts to 154. PolyNovo said it would embark on a recruitment drive to bolster its US sales team.
The company is looking to fill nearly a dozen roles to expand coverage across key cities and regions.
PolyNovo senior vice-president sales and marketing Americas Ed Graubart said staff in its US business were transitioning new accounts at a record pace.
“We have also filled some critical internal positions that allow for a more efficient and effective organisation,” he said.
The company’s flagship product is a dermal scaffold for burns and wounds based on a biodegradable ‘‘temporising matrix’’ called NovoSorb BTM. The dermal scaffold reduces patient recovery times and lessens the chances of infections, compared with traditional scaffolds.
Besides treating wounds and burns, it can be used in reconstructive surgery, necrotising fasciitis and general surgery.
PolyNovo said while major focus markets outside the US had been patchy, initiatives were being undertaken to improve the effectiveness of its in-market programs, direct sales force and distributor networks.
“While the US is the engine room of our growth in the immediate future, there are many opportunities in the rest of the world where we are just starting out,” said PolyNovo chairman David Williams the company’s largest shareholder.
Mr Williams said while US sales were encouraging, there was more to achieve once a recruitment drive was completed.
“In addition, we are retraining existing staff to follow surgeon leads using the product in new indications,” he said.
In Europe, PolyNovo said progress had been made with reordering and it had secured its first sales to Cyprus.
It also reported repeat orders in Denmark, Italy and Germany and its first order shipped to Poland earlier this month.
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