The Polynovo Ltd (ASX: PNV) share price closed well in the red on Monday today despite no announcements from the company.
Shares of the ASX medical devices company finished the day at $1.36 each, down 17.07%. It comes after the Polynovo share price shed 15% on Friday.
The S&P/ASX 200 Health Care Index (ASX: XHJ) also had a tough time today, recording a 1.45% loss. However, it performed marginally better than the S&P/ASX 200 Index (ASX: XJO) which closed 2.08% lower.
It seems momentum from last week’s largely negative news from the company carried over to today’s price action. Let’s recap what’s been happening with Polynovo.
What’s going on with the Polynovo share price?
Polynovo’s shares plummeted on Friday amid the company posting its full-year earnings card for FY22. As my Fool colleague Brooke Cooper observed, the slide was despite company revenue growing 42.8% from the prior corresponding period (pcp). Polynovo also reduced its net losses to $1.2 million (down from $4.6 million).
Of note is that Polynovo did not provide material guidance on its earnings or revenues for FY23 or beyond. Instead, it opted to give investors operational and product forecasts and leave investors to extrapolate the outlook for themselves. Although the information provided was useful, the absence of hard numbers did nothing to abate the violent market sell-off.
Moving forward to FY23, the company is working on its European distribution model and has submitted its BTM licence in Canada. It also has interests in Oceania, with eyes set on expanding into Australia and New Zealand.
Polynovo share price snapshot
The Polynovo share price is down 10.5% year to date. At the same time, ASX 200 Health Care Index and the ASX 200 Index are down 5.58% and 8.27% respectively.
The company’s current market capitalisation is roughly $903 million.
The post Why did the Polynovo share price plunge 17% today? appeared first on The Motley Fool Australia.
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More reading
- Why Aussie Broadband, Grange, NextDC, and PolyNovo shares are being hammered
- Polynovo share price plummets 15% despite surging full-year revenue
- Why City Chic, Macquarie Telecom, Polynovo, and Smartgroup shares are sinking
- Earnings preview: Here are the ASX shares reporting today
- How did the Polynovo share price respond last time the company reported?
Motley Fool contributor Matthew Farley has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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