Shares in ASX 200 healthcare group Avita Medical Ltd (ASX: AVH) have had an impressive run in the last 12 months. In the past year, the medical tech group's shares are up 353.57% higher to $0.64 per share. That means Avita's market capitalisation has rocketed to $1.34 billion and pushed it inside the S&P/ASX 200 Index (INDEXASX: XJO).
But, what's driving the ASX 200 healthcare group's shares higher right now and is there still time to buy?
Why Avita Medical shares have rocketed in the last 12 months
Let's start with some background on what exactly Avita does. The ASX 200 healthcare group specialises in regenerative medicine headlined by its ReCell spray-on skin for the treatment of burns. Over the past 20 years, Avita has been working to develop its flagship product which is FDA approved in the USA for the treatment of acute thermal burn wounds.
Medical professionals around the world have successfully used the ReCell product more than 8,000 times with studies showing a 97.5% reduction in skin donation requirements for second-degree burns, and a 32% reduction for third-degree. The ASX 200 healthcare group is also researching whether the product can be used to treat paediatric scalds and soft tissue reconstruction by the end of Q1 2020.
The Avita share price has ridden this product expansion right to the top. The group's shares are up more than 350% in the last year and nearly 700% since the start of 2019.
Should you buy into the ASX 200 healthcare group?
I think it's easy to look at an ASX 200 growth company like Avita and think you've missed the boat. And in all honesty, there is a chance that the growth potential has gone already.
However, if you took the same approach with CSL Limited (ASX: CSL) you would have been wrong many times over. The CSL share price is up more than 40,000% from its split-adjusted IPO price of $0.76 per share.
If you're risk-averse, then maybe buying Avita Medical shares isn't for you. However, with strong product results and the tick of approval from medical professionals, I think shares in this ASX 200 healthcare company could go higher in 2020 and beyond.
