The Nexion Group (ASX: NNG) share price is racing higher following a multi-million deal signed with IBM Australia Ltd (NYSE: IBM).

During the late afternoon trade, the information technology service provider’s shares are up 8.3% to 33 cents. It’s worth noting that when the market opened, the Nexion share price hit an all-time high of 41 cents.

What’s the deal?

According to its release, Nexion advised it has secured a contract with IBM Australia for a term of 5-years.

Under the agreement, Nexion will deploy a number of its products to IBM for a project located in Western Australia. This will include Nexion OneCloud infrastructure-as-a-service (IaaS), network links, session initiation protocol (SIP) voice services, security, and desktop support as well as managed services.

The deal is expected to generate revenue of around $4 million for Nexion. This follows a previous significant IBM solutions contract in the Nexion W1 Data Centre signed in the last 12 months.

Words from the Nexion CEO

Nexion CEO Kevin Read welcomed the deal, saying:

We are excited to be working with IBM, a recognised global technology leader. This deal helps underpin our global growth strategy based on key partnerships and to have a company of IBM’s caliber select Nexion is a phenomenal outcome.

Hybrid Cloud is one of the fastest-growing cloud segments and NEXION is proud to be an emerging global cloud, security, networking and data centre player.

Growth strategy in progress

Management noted that the newly signed contract, along with the go-live of its Perth Aryaka points of presence (PoP), was a major milestone for the company.

Nexion plans to expand its presence through deploying OneCloud Nodes across strategic locations. So far, existing OneCloud nodes are in Perth, Melbourne, and Adelaide. Others are expected to come to other Australian capital cities.

Furthermore, Nexion will look to penetrate the New Zealand market and abroad.

About the Nexion share price

Since listing on the ASX boards in the middle of this month, the Nexion share price has doubled in value.

The company offered up to 40 million shares with a price of 20 cents apiece to raise $8 million.

Based on the current share price, Nexion has a market capitalisation of around $21.3 million.

More reading

• The Nexion (ASX:NNG) share price has rocketed 90% since its IPO
• CBA, Westpac, ANZ adopt same tech as Bitcoin

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post Why the Nexion (ASX:NNG) share price is racing 8% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uxMsiy

Peet Limited (ASX: PPC) shares are sliding lower today after the company released its financial results for the half-year ending 31 December (H1 FY21). In late afternoon trading, the Peet share price has slumped almost 3% to $1.17.

Let’s take a look at how the residential land developer has been performing. 

What did Peet report?

The Peet share price is slipping despite the company reporting a 101% increase in statutory profits over the prior corresponding half, up to $10.1 million. Revenue of $106 million was also up 11% year on year.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 65% to $20.9 million, compared to $12.7 million in H1 FY20. Earnings per share (EPS) were up 100% to 2.1 cents.

The Peet share price is failing to respond despite the company reporting a 50% increase in the number of lots sold compared to the prior corresponding half, and a 62% increase in lots settled.

Peet had cash and debt facility of roughly $122 million as at 31 December 2020, with a weighted average debt maturity of close to two years.

Commenting on the results, Peet CEO Brendan Gore said:

Our performance during 1H21 was achieved on the back of improved market conditions and accommodative government stimulus in response to COVID-19. The margin increase [increased EBITDA margin of 21%, compared to 14% in H1 FY20] represents a combination of a significantly improved performance across the Funds Management and Joint Venture businesses and a reduction in expenses as the Group progresses its cost-outs.

Peet will pay an interim dividend of 1.0 cents per share (cps), fully franked. That’s up from 0.5 cps in H1 FY20.

Looking ahead, the company expects residential market conditions to remain positive over the coming half year, with “low interest rates, accommodating credit conditions and an improving employment outlook resulting from the impacts of governments’ stimulus”.

Peet share price snapshot

Having tumbled more than 59% during the pandemic market crash last February and March, the Peet share price remains down 14% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up just over 2% in that same time.

Year to date, Peet shares have jumped by around 1%.

More reading

• Why the Nexion (ASX:NNG) share price is racing 8% higher
• Starpharma (ASX:SPL) share price slips after posting loss
• Why the Zoono (ASX:ZNO) share price is tumbling 7% lower
• Why the Earlypay (ASX:EPY) share price is going nuts
• Propel Funeral (ASX:PFP) share price gains some glow after strong results

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post Peet (ASX:PPC) share price slips despite doubling profits appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3uxMrLw

The Starpharma Holdings Limited (ASX: SPL) share price is in the red today, slipping 0.47% at the time of writing to $2.13.

The biotechnology company develops new pharmaceutical and medical products based on proprietary polymers called dendrimers, with programs for COVID-19, DEP drug delivery, VivaGel and Viraleze.

 Stapharma reported its half-year results earlier today. This is what we found out.

Starpharma posts half-year losses

Starpharma reported that its total revenue for the first half of FY21 (1H21) was $638,000, down 89% on the previous corresponding period.

The company also incurred a loss after tax of $10.4 million in 1H21, which was 78% greater than that incurred in 1H20. It attributed the loss to lower revenue generated during the period.

Basic loss per share was $2.69 in 1H21 compared to a loss per share of $1.58 in 1H20.

However, Starpharma’s net assets more than doubled during the period and it finished off the half with a value of $69.9 million. In contrast to $31.3 million net assets in 1H20.

The cash balance as of 31 December 2021 was $70.3 million, a significant leap from $35.9 million at the end of 1HY20.

CEO commentary

Starpharma CEO Dr Jackie Fairley said the company “achieved multiple significant milestones in the recent period”. These included the rapid development of its Viraleze antiviral nasal spray and signing two new partnerships:

These new partnerships illustrate the broad applicability of the DEP® platform and its use for multiple therapeutic areas.

We also progressed our other partnered DEP® programs and recently announced AstraZeneca’s global expansion of its phase 1 trial for DEP® AZD0466 which is designed to expedite the development of this exciting novel drug.

Dr Fairley also advised that additional clinical trial programs were progressing as the company continued to focus on expanding the availability of its products.

Starpharma share price snapshot

The Starpharma share price has gained 89.09% over the past year.

There are currently 406 million shares outstanding. The Starpharma market capitalisation presently stands at $897.3 million.

More reading

• Here’s why the Starpharma (ASX:SPL) share price is rocketing 13% higher
• Why Bank of Queensland, MNF, Oil Search, & Starpharma are charging higher
• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower
• Why Novonix, Recce, Singular Health, & Starpharma shares are storming higher
• Here’s why the Starpharma (ASX:SPL) share price just stormed to a record high

Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Starpharma Holdings Limited. The Motley Fool Australia has recommended Starpharma Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Starpharma (ASX:SPL) share price slips after posting loss appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3bzAUD3

The Zoono Group Ltd (ASX: ZNO) share price is under pressure on Thursday.

In afternoon trade the biotech company’s shares are down 7% to 73.5 cents.

This leaves the Zoono share price trading within touching distance of its 52-week low of 71 cents.

Why is the Zoono share price under pressure?

Investors have been selling Zoono shares following the release of its half year results.

For the six months ended 31 December, the company reported a total revenue of NZ$14.4 million and a net profit before tax of NZ$2.7 million. This compares very favourably to revenue of NZ$1.9 million and a loss before tax of NZ$0.7 million a year earlier.

Zoono’s growth was driven by increased demand for its anti-microbial solutions because of COVID-19. It is worth noting that the prior corresponding period was before the emergence of COVID-19.

COVID-19 tailwinds and headwinds

Interestingly, COVID has both benefitted and hindered its performance. While it is highly unlikely that its sales would have reached this level without a pandemic, negative COVID impacts have restricted its sales growth.

Management explained: “While the Company has, overall, undoubtedly benefited from the impact of the COVID-19 pandemic, in many respects, the opposite has been the case in the review period in that the disadvantages have outweighed the benefits. Confidence in and around the workplace has been adversely affected and, with the Company’s business being primarily focussed on the B2B sector, several major supply agreements have been put on hold or deferred simply because either the businesses or the buildings housing them (or both) have been closed and/or the employees not at work.”

Management estimates that these negative impacts total NZ$6 million to NZ$7 million.

Outlook

Possibly weighing heavily on the Zoono share price today is its outlook for the remainder of the year.

Despite its strong revenue growth in the first half, management isn’t expecting its full year growth to be as explosive. It is merely aiming to surpass last year’s revenue.

Zoono’s Managing Director and CEO, Paul Hyslop, commented: “We are very pleased with the momentum we were able to maintain throughout the first half of the financial year. Moving forward, our focus will continue to be the B2B markets in the Americas, UK/EU, China/ASEAN and MENA/India.”

“While the home markets of NZ and Australia are important, the sales volumes available in the larger off shore markets demand that Zoono continues to aggressively go pursue new business globally. We remain confident of delivering a year-end revenue result that surpasses last year.”

More reading

• Why Advance NanoTek, Incitec Pivot, Starpharma, & Zoono are tumbling lower
• Zoono (ASX:ZNO) share price tanks 17% on quarterly report

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post Why the Zoono (ASX:ZNO) share price is tumbling 7% lower appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2ZNBjvZ

The Earlypay Ltd (ASX: EPY) share price has gone nuts today, it’s up more than 10% after announcing its FY21 half-year result.

Earlypay is a business that provides finance to small and medium businesses (SME) in the form of secured invoice financing and equipment financing. SMEs can receive an advance payment of up to 80% of a client’s invoice to help cashflow pressures.

What was in the Earlypay result?

The company revealed that it generated $9.8 million of earnings before interest, tax, depreciation and amortisation (EBITDA), which was down 4% compared to the prior corresponding period.

Net profit after tax (NPAT), after adjusting for non-cash amortisation, was down 24% to $3.5 million.

Earlypay said that new business outcomes were accelerated by the acquisition of Skippr platform, with online applications representing 56% of new business in the second quarter after the launch in September 2020.

The company has been working on reducing its costs. It said it had achieved permanent cost savings of $1.5 million through the restructure of its funding lines during the second quarter of FY21.

Management were pleased with the company’s performance in the first half considering the impacts on the SME market relating to COVID-19. Indicators point to a recovery across most metrics going into the second half.

Earlypay said that it showed resilience with no material defaults or losses through the peak of the COVID-19 downturn. It said that it’s well provisioned against elevated SME insolvency risk as government support reduces in the coming months.

The company revealed that the second quarter group revenue was up 5% quarter on quarter to $11.1 million, the EBITDA grew 33% quarter on quarter to $5.6 million (with the EBITDA margin improving from 43% to 47% in the second quarter) and the NPATA increased 92% quarter on quarter to $2.3 million.

CEO commentary

Earlypay CEO Daniel Riley said:

Current volumes indicate that we are now back trading in excess of $2 billion total transaction value (TTV) on an annualised basis. This is due to an increase in funding requirements from existing clients, as well as new clients coming on board as our organic growth continues to build.

Restoring the Earlypay brand signified a return to our company’s roots as a leader and innovator in the small business finance sector. The integration of the Skippr business, acquired in August 2020, is driving our digital transformation by improving client acquisition and client experience through new technology, while making our business more efficient. The firm-wide digital transformation is ongoing and we expect this investment in technology to drive organic revenue growth and operational efficiencies for years to come.

Earlypay dividend

The company’s board decided to declare an interim dividend 1 cent per share. It didn’t pay anything in the prior corresponding period.

Earlypay share price movements

Excluding today’s gain, the Earlypay share price hadn’t done much since the start of 2021. Over the last 12 months it’s down 22%, though it has risen over 80% since the bottom of the share price at the end of FY20.

Outlook

It said that it’s expecting to report record half-year earnings for the second half and has provided guidance of FY21 EBITDA to be more than $21 million, NPATA to be more than $8.5 million and a final dividend of 1.3 cents per share.

The company sees the second half of FY21 as a place from which it can start building growth again and capitalise on the digital changes it has made, as well as the improved client experience and bigger addressable market.

More reading

• What’s the go with the EarlyPay (ASX:EPY) share price today?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post Why the Earlypay (ASX:EPY) share price is going nuts appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3pNEApD

The Propel Funeral Partners Ltd (ASX: PFP) share price is trending higher today after the funeral operator announced its first-half results to the market. At the time of writing, Propel Funeral shares were trading at $3.05, up 3.4%.

Shareholders seem to be pleased with the performance over the period. Let’s take a look at the numbers.

What’s moving the Propel Funeral share price today?

Propel Funerals opened its results with the overarching guide of COVID-19 impacts on the business. The period was marked by a high focus on hygiene, lack of travel, and reduced number of flu cases. Consequently, there have resulted in abnormally low deaths during the period. As morbid as it may seem, this did impact Propel’s operations to an extent. 

However, lower death volumes were partially offset by a lift in average revenue per funeral. Once funeral attendee limits were lifted, average revenue increased.

Overall revenue from operations increased to $59 million, a lift of 3.5% on the prior corresponding period. While earnings before interest, tax, depreciation, and amortisation (EBITDA) bumped ahead to $19 million, an increase of 14.8%.

Impressively, despite ongoing disruptions, Propel managed to widen its operating margin in the half to 32.2%. However, the real headliner of Propel’s result is the outrageous 141.7% increase of its bottom-line profit.

Compared to the previous period (pre-covid), profits were $3.4 million for the half. This has grown to $8.2 million. This was aided by further acquisitions during the year. Although, it is worth noting that last year’s profit was reduced by a $4 million performance fee. 

Furthermore, the board has declared a fully franked interim dividend of 6 cents per share. This is a 50% increase from 1H FY20’s dividend of 4 cents per share. Based on the nominated distribution, the payout ratio is roughly 82% and the dividend yield is 4.1%.

Will it be propelled into the future?

Propel Funerals is betting on below-trend death volumes being temporary. While that could be perceived as grim, it’s more of a historical fact of life (and death). The company sees the growing and aging population in Australia and New Zealand as growth drivers moving forward.

The funeral operator has also specified that it will continue to make acquisitions where sensible. Propel considers the industry to be fragmented. Therefore, it sees an opportunity in being a consolidator, despite already being the second largest in Australia. For reference, InvoCare Limited (ASX: IVC) is the largest.

According to Propel’s balance sheet at the end of the half, cash is looking a tad low. Currently, it stands at $6.8 million. Compared to the end of June last year, when cash was $53.9 million. If Propel does want to make further acquisitions, it has a few options. It will either need more profits, a capital raise, or an increase in debt.

Propel Funeral Partners has a market capitalisation of $295 million.

More reading

• InvoCare (ASX:IVC) share price lower after posting full year loss
• 3 little-known ASX dividend shares offering big income
• Why the InvoCare (ASX:IVC) share price tumbled 5% lower today
• GameStop effect: 3 more shorted ASX shares that could skyrocket
• ASX 200 down 0.2%: Zip Chair steps down, Worley crashes, Blackmores & InvoCare jump

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Propel Funeral (ASX:PFP) share price gains some glow after strong results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37JJGgH

4DMedical Ltd (ASX: 4DX) shares are on the rise today after the company released its half-year results for the period ending 31 December 2020 (1H21). At the time of writing, the 4DMedical share price is trading 2.06% higher at $1.735. At one point during intraday trading, 4DMedical shares rallied by as much as 7% before retreating to their current levels.

Let’s take a look at how the medical imaging company has been performing.

What’s driving the 4DMedical share price higher?

The 4DMedical share price is trending higher today after the company posted its first-ever 1H report since listing late last year.

In today’s release, the company outlined its progress since its successful initial public offering (IPO) that raised $55.79 million. During the period, 4DMedical received Australian TGA approval for its lung imaging software-as-a-service (SaaS) platform. This is a critical milestone for the company to be able to generate meaningful revenue moving forward and was achieved six months ahead of schedule.

In other news boosting the 4DMedical share price, the company also announced it has secured its first United States research program to advance its lung imaging technology in collaboration with the University of Miami.

Regarding the company’s financials, 4D Medical ended the half-year period with $43.04 million cash at bank. The company’s revenue from ordinary activities during the half-year was derived from maintenance services relating to its scanners.

This revenue declined 86% from the prior corresponding period (pcp), which included $1.10 million in sales of preclinical hardware. Other income increased 29% to $1.08 million, comprised of tax incentives, grant income, and JobKeeper subsidies.

The company’s net loss for the period rose strongly to $13.14 million, up 145% compared to a loss of $5.37 million in the pcp. 4DMedical stated that “the operating result was consistent with management’s plans.”

Management comments

4D Medical founder and CEO Andreas Fouras addressed the results saying:

The first half of FY21 was an extremely busy period for 4DMedical in which we achieved some major operational milestones, such as the company listing on the Australian Securities Exchange (ASX), as well as making significant progress towards commercialisation in both the U.S. and Australia. I am extremely proud of our team’s achievements, particularly whilst faced with COVID-19 which continues to create a level of uncertainty and reduced decision-making capacity, particularly in the U.S.

It has not been a good start to the year for the 4DMedical share price. Year to date, the company’s share have fallen by nearly 29%, faring far worse than the All Ordinaries Index (ASX: XAO), which has delivered a 2.3% gain so far this year.

Based on the current 4DMedical share price, the company commands a market capitalisation of around $300 million.

More reading

• Brace for an IPO resurgence as new floats beat the ASX 200 by ~50%
• Why the 4DMedical (ASX:4DX) share price is slipping today
• Why the 4DMedical (ASX:4DS) share price is soaring higher

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post 4D Medical (ASX:4DX) share price rises on maiden half-year results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3dKwZG7

The Supreme Court of Victoria ruled today Bega Cheese Ltd (ASX: BGA) is entitled to use the Bega trademark on products outside the scope of the Fonterra Shareholders’ Fund (ASX: FSF) licence without the fund’s consent.

The ruling means, in practical terms, that Bega may use the Bega trademark on its products such as peanut butter and Vegemite, while Fonterra’s licence on the trademark will continue on natural and processed cheddar cheese, string cheese, and butter.

Bega’s counterclaim, which alleged multiple breaches of the licence agreement by Fonterra, was dismissed.

Response by both parties

In a statement released to the ASX, Bega said it was “pleased that its right to use its brand on [peanut butter and Vegemite] has been confirmed by the court.”

René Dedoncker, managing director of Fonterra Australia, gave the following statement to Motley Fool Australia in response.

“We’re pleased with the decision that Fonterra will retain exclusive licence for the Bega cheese brand for cheese and butter. We will continue to invest in the Bega brand because we believe in it.”

“Although we’re disappointed with the decision on the trademark claim, we are confident that we can work together with Bega Cheese Limited to continue to grow the value of the brand.”

“We will review the judgement in the coming days and consider our options.”

Background to the case

In 2002, Bega Cheese and Fonterra came to an agreement for Fonterra to licence the Bega trademark until 2026 – including blocks and slices of cheese, and Stringers.

According to the ABC, the deal was going well until Bega Cheese announced in 2017 it was buying a suite of Kraft products from Mondelez International Inc (NASDAQ: MDLZ). Subsequently, the Australian dairy manufacturer replaced the Kraft logo on these products with its own Bega logo.

During initial proceedings, Fonterra alleged Bega were “diluting the distinctiveness of the [Bega] brand” and would cause “significant damage to the existing reputation of the Bega trademarks.”

Fonterra and Bega share price snapshots

Bega Cheese hit a 52-week high yesterday and this momentum has carried on into today. At the time of writing, the Bega Cheese share price was up on yesterday by 9 cents to $6.24.

Fonterra’s share price has also risen today, up by 4 cents to $4.67. This rise has come off the back of a narrowed earnings guidance.

It is not yet clear whether today’s court ruling will have any impact on each company’s share price.

More reading

• Fonterra (ASX:FSF) share price on watch after narrowing earnings guidance
• Why Bega, Blackmores, IDP Education, & SeaLink shares are zooming higher
• Why the Bega Cheese (ASX:BGA) share price just charged to a 52-week high
• 3 top ASX shares to buy according to WAM
• Top fund manager names these 2 ASX shares as buys

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. 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 Bruce Jackson.

The post Court rules on Bega Cheese (ASX:BGA) and Fonterra (ASX:FSF) trademark dispute appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sp8VfZ

Alcidion Group Ltd (ASX: ALC) shares are on the rise today after the company recorded one of its strongest sales periods to date. At the time of writing, the Alcidion share price has jumped 8.7% to 25 cents.

Let’s take a look at how the tech company has been performing.

Alcidion share price surges on strong earnings 

The Alcidion share price is running higher today following the company delivering strong earnings growth during the first half of FY21 (1H21). Alcidion reported that revenue for the period increased by 36% to $11.1 million. 

The company added $17.4 million in contracted revenue in the first half, one of its strongest sales periods to date. A further $23.0 million of sold revenue will also be recognised over the next five years from FY22 to FY26. 

Significant contracts were signed in the United Kingdom and Australia, including with NHS Trust for Alcidion’s largest-ever smart clinical solution, Miya Precision. Other significant contract wins include 12-month contracts signed with New South Wales Government local health districts Murrumbidgee and Sydney. 

Strong revenue growth also translated into an improved earnings before interest, tax, depreciation, and amortisation (EBITDA) loss of $912,000 compared to a $1.7 million EBITDA loss in 1H20. 

Upbeat outlook  

Alcidion believes it is advantageously positioned for the second half of FY21, with the health IT sales environment progressively returning to pre-COVID-19 levels. 

The company’s current sales revenue is growing strongly and is on track to surpass FY20 revenue. Contracted revenue in FY21 is already 17% higher than the year prior with four months of the year still remaining. 

The company is upbeat about its sales pipeline, citing new and existing customers in all markets being underpinned by a strong recovery in health IT procurement. 

Company snapshot

Alcidion helps healthcare organisations leverage the power of technology to create a clinically relevant environment with digitally enabled care. The company’s flagship product is its Miya Precision solution that facilitates multiple clinical and operational applications. 

Over the past twelve months, the Alcidion share price has jumped by nearly 39%. Year to date, Alcidion shares are trading nearly 32% higher.

Based on the current share price, the company commands a market capitalisation of around $248 million.

More reading

• Here’s why the Alcidion (ASX:ALC) share price is racing 7% higher today

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Alcidion (ASX:ALC) share price hits 52-week high on record sales appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2ZQ3Hhg

The PolyNovo Ltd (ASX: PNV) share price is climbing higher in the early afternoon trade. This comes after the company announced that it will expand its presence into new geographical markets. At the time of writing, the medical device company’s shares are up 4.1% to $2.52.

What’s driving the PolyNovo share price higher?

PolyNovo shares are running higher after investors appear upbeat about the company’s future prospects.

According to its release, PolyNovo advised it will enter the medical device market for Nordic countries, Denmark, Norway, and Iceland. This will be supported by the company’s partner, MedinaMedical, who will help distribute PolyNovo’s NovoSorb BTM.

MedinaMedical is based in Copenhagen, Denmark, and specialises in reconstruction, complex wounds, and burns. The latest addition is seen as a perfect fit for PolyNovo as it seeks to significantly ramp up its expansion strategy.

In addition, the company noted that there is already a lot of interest in NovoSorb BTM, which could attract significant sales growth.

What is NovoSorb BTM?

NovoSorb BTM (Biodegradable Temporising Matrix) is a biodegradable synthetic polymer. NovoSorb BTM is used to treat burns and other serious skin wounds. The polymer is applied to the trauma site of the skin. Afterwards, the body commences a regeneration process in building new tissue. Eventually, the polymer is absorbed and excreted. Thus, leaving only biological material behind.

What did the managing director say?

PolyNovo managing director, Paul Brennan, hailed the company’s step into the new markets. He said:

Our partnership with MedinaMedical completes PolyNovo’s coverage of the Nordic region which consist of some of the highest quality healthcare systems in the world. As a percentage of GDP, Nordic countries also have some of the highest healthcare expenditures in the world, and therefore, this is an exciting incremental step in expanding our sales across Europe.

About the PolyNovo share price

Over the last 12 months, the PolyNovo share price has remained relatively flat, up only 4.5%. In comparison, the healthcare sector (ASX: XHJ) has increased by 12.2% in the same time frame.

Based on the current share price, PolyNovo has a market capitalisation of close to $1.66 billion.

More reading

• Polynovo (ASX:PNV) share price rises despite widening losses
• How do Avita Medical (ASX:AVH) shares stack up against Polynovo and Aroa Biosurgery?
• A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME)
• The Aroa (ASX:ARX) share price has surged 60% since its IPO
• Why the PolyNovo (ASX:PNV) share price is pushing higher

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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 Bruce Jackson.

The post PolyNovo (ASX:PNV) share price advances 4% higher on market update appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qWxksU