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Highlights

  • PolyNovo shares surge up to 14.7%, marking biggest intraday gain since June 2023.

  • Positive proof-of-concept results from NovoSorb BTM in Type 1 diabetes treatment spark investor enthusiasm.

  • Year-to-date losses trimmed to ~19.2% as stock becomes top gainer on ASX200.

Shares of PolyNovo Ltd (ASX:PNV) surged as much as 14.7% on Tuesday, reaching AU$1.675, following a groundbreaking announcement regarding the company’s NovoSorb BTM (Biodegradable Temporising Matrix) technology and its application in treating Type 1 diabetes.

This marks PolyNovo's biggest intraday percentage gain since June 7, 2023, placing the medical device maker among the top gainers on the S&P/ASX 200 Index during the session. The stock later settled at a gain of 10.3%, reducing its year-to-date losses to around 19.2%.

Breakthrough in Type 1 Diabetes Research

The spike in share price came after the company revealed positive results from a proof-of-concept study involving the use of NovoSorb BTM in managing Type 1 diabetes.

According to PolyNovo, the study demonstrated that human pancreatic islets—the cells responsible for insulin production—survived and functioned successfully after being transplanted into a neovascularised site within the skin created using NovoSorb BTM.

This approach could represent a significant innovation in diabetes treatment, as traditional islet transplants often face challenges related to rejection, poor vascularisation, and immune response. NovoSorb BTM’s unique properties appear to create a more favourable environment for the transplanted cells, potentially paving the way for less invasive and more effective treatments for Type 1 diabetes patients.

Market Reaction and Investor Sentiment

The market quickly responded to the positive clinical data, with heavy buying pushing PolyNovo’s share price to levels not seen in weeks. The surge reflects investor optimism that NovoSorb BTM's potential goes beyond wound care and burns treatment, the applications it was originally developed for.

While the treatment remains in the early stages of development, the announcement reinforces PolyNovo’s strategic focus on diversifying its medical portfolio and expanding the clinical use cases for its core technology platform.