The share price of PolyNovo Ltd significantly increased after investors flocked to purchase their stocks. The company's business operations were found to be less susceptible to chain supply disruptions, a standard business problem in the global market today due to the public health crisis in China.
According to The Motley Fool, demand for PolyNovo Ltd shares climbed in recent weeks. The report claimed that the dermal regenerations focused on the medical device company's shares.
The stock value of PolyNovo shares increased by six percent to 2.19 USD. The report explained that the company's shares have been rising since this morning after it revealed the impacts of the public health crisis to its entity.
The data revealed that PolyNovo would not be directly affected by the public health crisis, unlike some companies that source their products and services from China. The company claimed that business or sales have been improving amid the crisis.
The report then claimed that PolyNovo does not source its products and services, including its materials from China. It follows multiple supplier redundancy systems that are designed to prevent significantly supply chain disruption.
The management also announced that the company currently has enough raw materials to run two shifts of production this year. These shifts were revealed to be scheduled from April 2020. Furthermore, PolyNovo also announced that it would produce enough inventory to achieve its market demand for the rest of the year.
The company was also revealed to have enough inventory of finished products in the US, New Zealand, and Australia. Furthermore, it also has ample stocks in the United Kingdom and European Union member states. Hence, the company claimed that it could meet its sales forecast for a significant period.
The report then compared PolyNovo stocks to Cochlear Limited, a company that offers similar products and services with the former. Cochlear Limited was reported to have deferred its hearing implant surgery products and that those are not being used in elective surgeries.
It was also revealed that such Cochlear Limited products were only used for trauma, extensive surgery applications, and emergencies. The company explained that demand for its products would increase in the coming months due to the public health crisis.
According to PolyNovo's chief executive officer Paul Brennan, the company is observing a disciplined approach to the public health crisis. He added that they are realistic by not tackling the market with undue optimism. He also claimed that PolyNovo is vigilant with its business dealings and would adapt to changes, even those that come with short notices. He also said that they would take decisive action if the market so requires.
In other news, the Washington Post reported that Chinese President Xi Jinping announced the country's recovery from supply chain disruptions. However, the report highlighted that companies in the manufacturing industry continue to struggle in resuming work at full-speed due to the public health crisis and state impositions.
