More biotech companies moving into ASX 200


More biotech companies are moving into the ASX200, with two new companies recently joining the list: PolyNovo (PNV) and Avita Medical (AVH).

This movement demonstrates the healthy biotech pipeline in Australia, with more SMEs progressing through as the life sciences sector grows and matures.

PolyNovo Limited (PNV) – which o was awarded Company of the Year at the AusBiotech 2019 conference last month – was admitted into the ASX200 in early September and, as at 20 November 2019, had a market cap of $1.4 billion.

The company has commercialised a unique bio-resorbable polymer, NovoSorb, for use in medical devices. The first product is NovoSorb BTM, a dermal scaffold, for the regeneration of lost dermis through surgical excision, trauma, infection or burns.

Avita Medical (AVH) has also joined the ASX200, just two months after being added to the S&P/ASX 300 index. The regenerative medicine company’s technology platform is positioned to address unmet medical needs in burns, chronic wounds, and aesthetics indications. Its market cap as at 20 November 2019 was $1 billion.

AusBiotech released updated figures last month, with the new sector ‘snapshot’ revealing momentous growth across the Australian life sciences sector over the past two years. ASX-listed companies have increased from 140 companies in 2017, to over 160 in 2019. The value of these companies has grown to over $170 billion, demonstrating the opportunities available for investment.

Biotech leader CSL has become the second-largest company listed on the ASX. With a market cap of $124.5 billion (as at 20 November 2019), the company is larger than BHP Group Ltd, and banks such as Westpac Banking Corp, National Aust. Bank and the ANZ Banking Group Ltd. It commemorated its 25th anniversary of listing on the ASX last month, and created a video to reflect CSL’s transformational growth, demonstrating its innovation and vision, growth, achievements and contributions across the years. Watch the video.  

Healthcare represents almost 10 per cent of total index market cap of the ASX 200, with CSL holding just over six per cent. Other AusBiotech members included on the list are: Sonic Clinical Trials (a subsiderary of Sonic Healthcare - SHL), Cochlear Limited (COH); and Nanosonics Limited (NAN).

Fig 1. Capital with confidence: A launch pad to accelerate your growth, Q4 2019; ASX.