Polynovo share price halted amid FDA news

The Polynovo Ltd (ASX: PNV) share price has been thrown into the freezer this afternoon as the company gets ready to release what could be big news.

The medical devices developer appears to be preparing to announce a major product has received United States Food and Drug Administration (FDA) clearance.

The Polynovo share price was trading flat at $1.36 prior to being frozen ahead of the anticipated announcement.

Let’s take a closer look at what’s going on with the S&P/ASX 300 Index (ASX: XKO) stock today.

Polynovo stock in the freezer ahead of FDA news

The Polynovo share price isn’t going anywhere this afternoon. Meanwhile, fans are likely on the edge of their seats as they prepare to learn of the company’s latest news.

In requesting its trading halt, the company hinted that a “major” product had received clearance from the US food and drug regulator.

The approval could have a huge impact on the company’s ability to market the product in the North American nation.

However, eager market watchers will likely be left waiting over the weekend. The stock will remain frozen until Tuesday’s open unless the anticipated announcement drops between now and then.

Polynovo develops medical devices using its patented bioabsorbable polymer technology, Novosorb.

Its NovoSorb Biodegradable Temporising Matrix (BTM) brought in $37.6 million of sales last financial year. The product is a dermal scaffold for the regeneration of dermis that’s lost through surgery or burn.

The company lodged an application for FDA clearance for its Novosorb MTX product early last month.

Polynovo share price snapshot

This year has been a rough one for the Polynovo share price.

The stock has slumped 13% since the start of 2022. It’s also trading for 30.5% less than it was this time last year.

For comparison, the ASX 300 has slipped 11% year to date and 10% over the last 12 months.

The post Polynovo share price halted amid FDA news appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 300 healthcare share winners on Wednesday
• Why did the Polynovo share price plunge 17% today?
• 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

Motley Fool contributor Brooke Cooper 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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