This potion is unique as it increases "damage" instead of "attack power", which means that it increases damage from any source including signs and even conditions like burning. However as with most stat boosting effects it only takes base damage into account.
Very effective when using bombs as in most cases it will actually increase their damage by full 50%, including those that cause damaging conditions.
The effect works very well with Invigoration as both require Geralt to remain at full health.
The effect will not trigger if Geralt is suffering from damage due to toxicity, even if he has enough regeneration applied to out-heal it. This happens because his HP must be at maximum for the effect to work and due to the damage his HP will always be 1 point below maximum no matter how high the regeneration is. However, this can be avoided by unlocking Heightened Tolerance.