breakout rally

Sounds very positive from ASX guru:

For those who follow charts, there was a clear buy signal given for Calzada Limited (CZD) the day before the company announced the winning of a prestigious award from the American Burn Association. The award was in recognition of the work that Associate Professor John Greenwood AM, in conjunction with Calzada?s subsidiary, PolyNovo Biomaterials Pty Ltd had achieved in developing their Biodegradable Temporizing Matrix (BTM) technology.

The following excerpt from the announcement provides a little more detail about the technology:

After receiving his prize A/Prof. John Greenwood said:?This is an enormous honour and approbation of the lengthy and complex research we have committed to the prize of replacing the skin graft with a cultured equivalent in a synthetic polymer scaffold. The prize focuses on our recent (pig) work, but I believe that it also rewards all of the laboratory and animal science that preceded it over the past 7 years. We have been very guarded about making a ?song and dance? about the technology until good and thorough science supported our claims.?

Mr Laurent Fossaert, CEO of PolyNovo commented:?This is a great validation of the work performed by the NovoSkin team, the results to date are confirming the superior performance of the BTM technology, when compared to the best available treatment.?

Clearly the technology is ground breaking and could lead to a major breakthrough in the treatment burn wound treatment. The share price traded slightly higher when the news was released on Thursday of last week, closing at 5.1c. Over the next few day?s the share price gradually pushed higher and on Monday a high of 6.4c was reached after the company announced the granting of a US patent for one of their associated technologies.

Some late profit taking did occur yesterday, which was odd, but today the market seemed to gain a fuller appreciation of the breakthrough technology that was being developed by the company.

Calzada?s share price hit a high of 9.9c before closing at 8.1c ? managing a 35% gain for the day.

Biotechnology stocks a notoriously volatile so I am loath to make any short term price prediction here, but over long term, the recent announcements suggest they are on the cusp of some very substantial medical breakthroughs.