Earlier today I looked at three ASX 200 shares that have been smashed in 2019.
Thankfully, these shares are in the minority, with the majority of shares on the index recording solid gains this year.
Three ASX 200 shares that are leading the way are listed below. Here's why they have been on fire in 2019:
Avita Medical Ltd (ASX: AVH)
The Avita Medical share price has rocketed a remarkable 634% higher since the start of the year. The catalyst for this has been the strong sales growth of its RECELL System. The FDA-approved RECELL System is indicated for use in the treatment of acute thermal burns in patients 18 years and older. It is used to prepare Spray-On Skin Cells using a small amount of a patient's own skin. This provides a new way to treat severe burns, while significantly reducing the amount of donor skin required. Demand has been growing strongly, leading to Avita Medical recording first quarter sales of $7.9 million. This was a 165% increase on the prior corresponding period. This strong form recently allowed it to raise $120 million through an institutional placement. This will be used to fund its US growth and the pipeline development of new indications.
EML Payments Ltd (ASX: EML)
The EML Payments share price has been an impressive performer again this year, recording a gain of 188%. The catalyst for this has been its strong operating performance and a major acquisition. In FY 2019, EML Payments delivered a 37% increase in revenue and a 283% lift in net profit after tax. This strong form is expected to continue in FY 2020, with management guiding to EBITDA growth of 29% to 42%. This guidance excludes the $423 million acquisition of Ireland-based Prepaid Financial Services, which is expected to be significantly accretive to earnings in the future. The addition of Prepaid Financial Services has diversified its operations to include prepaid payments, digital banking capabilities, and other flexible software solutions to financial and non-financial institutions.
Polynovo Ltd (ASX: PNV)
The Polynovo share price has rocketed a massive 221% higher since the start of the year. This strong gain has been driven by excitement around its NovoSorb Biodegradable Temporising Matrix (BTM) product. The NovoSorb BTM product is a dermal scaffold for the regeneration of the dermis when lost through extensive surgery or burns. Sales have been growing strongly and look set to be given a major boost in 2020. The medical device company recently revealed that NovoSorb BTM has been granted a certificate of conformance (CE Mark) approval for sale throughout UK/Ireland and the European Union. Management described this as a watershed moment for PolyNovo.
