Polynovo Ltd is an Australian medical technology company with a particular focus on developing bioabsorbable products for surgical applications.
The company’s flagship product is NovoSorb, which is a synthetic scaffold used in reconstructive and cosmetic surgery. NovoSorb BTM is designed to aid in the regeneration of soft tissue and promote healing, particularly in cases of significant skin loss due to trauma, burns, or surgical procedures.
Like many medical companies success has not been overnight with many years of clinical studies and registration with regulatory authorities in Australia, Europe and the US.
The financial numbers for PNV look strong with revenue consistently growing over the past several years and the company becoming profitable this year. The company looks to be at that inflection point where the product has market recognition, clinical success, regulatory approval, and strategic partnerships that all lead to sustained financial performance.
On the technical front, PNV is in a nice steady uptrend where price has respected the rising 50 day moving average (Blue line). More recently, price has pulled back, touched the 50-day moving average, then bounced off, and now looking to recapture the shorter-term moving averages. Given that resistance is around the $2.40 level, the likely scenario would see bears step up and defend that $2.40 area in the short term. Also noteworthy is PNV’s outperformance when compared to the index, with PNV’s relative strength outperforming the general market by 40% over the last 6 months and 25% over the last 3 months.
TRADE ACTION
Number of shares: 2,000
Entry: Buy up to $2.20
Stop Loss: $1.90
Target: No Target
