PolyNovo Ltd [ASX:PNV] has developed a product which helps regenerate lost and damaged tissue, promoting new dermis for burns and bad wounds. The new dermis generated improves survival and has superior cosmetic outcomes.
The product provides a temporary scaffold of sorts where new dermis can be generated. It then biodegrades leaving the patient’s own tissue fully repaired.
Competitor products are usually animal sourced or come from cadavers. There is a high risk of rejection with these products.
PolyNovo’s product offers significant advantages over competitor products. It’s purely synthetic, so there is no risk of rejection.
The other advantage is they have the capacity to produce a large supply in the event of a disaster situation where there is a high number of casualties.
The company has recently found support from the US based Biomedical Advanced Research and Development Authority (BARDA).
BARDA is a US organisation which supports medical countermeasures against American security threats.
Many terrorist actions result in mass casualties, resulting in serious burn injuries and tissue damage. Injuries which lead to long rehabilitation and treatment times, placing significant demands on the health system.
That’s interesting, but what is the chart telling us?
The daily chart of PNV
Marked on the chart is the positive news announcement from the end of September.
This is news that BARDA awarded PolyNono a US$8.2 million dollar contract for a clinical trial. Upon successful completion of the trial, a further US$18 million dollars will be forthcoming for further testing.
In yesterday’s trading the PolyNovo share price rose further, up 12.5% to hit a high of 18 cents on the day.
This is a company to follow. The share price has broken over that prior news, suggesting possibly more positive news to come. Let’s wait and see.