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2 ASX healthcare shares up more than 100% in the past year

The ASX healthcare sector continues to be one of the top performers on the ASX in terms of share price rises.

While most Australians are likely familiar with Cochlear Limited (ASX: COH), CSL Limited (ASX: CSL), and Ramsay Health Care Limited (ASX: RHC), the following two ASX healthcare shares may not be as familiar but have seen very strong gains over the past 12 months.

Avita Medical Ltd (ASX: AVH)

Avita Medical has been the best-performing S&P/ASX 200 Index (ASX: XJO) share over the past 12 months with a 194% gain.

The company specialises in regenerative medicine with its key product being ReCell for the treatment of acute thermal burns in patients 18 years and older. ReCell is used to prepare Spray-On Skin Cells by using a tiny amount of a patient’s own skin. This provides a revolutionary new way to treat severe burns, while also significantly reducing the amount of donor skin required. Over the past 20 years, Avita has been working to develop its flagship product which is FDA approved in the USA.

Not surprisingly, there has been some pullback in the Avita Medical share price due to the wider ASX correction which has now turned into a bear market. With this, Avita shares have lost around 40% of value since 20 February 2020.

Just last week, Avita announced it had initiated a major trial for the treatment of paediatric scald injuries with the enrolment of the first patient at the Arizona Burn Center in Phoenix, United States. This followed an update a couple of days earlier on a key study evaluating Avita’s RECELL System for soft tissue reconstruction.

Polynovo Ltd (ASX: PNV)

PolyNovo is an Australian-based medical device company that designs and manufactures an implantable dressing, NovoSorb BTM, which can be integrated into the body as it heals. This ASX healthcare share has experienced a 162% increase in its share price over the past 12 months.

Last month, the company reported strong recent increases in sales and revenue. For the first half of FY20, PolyNovo delivered a 129% increase in sales of NovoSorb BTM compared to the prior corresponding period. Total revenue for the half came in at $10.18 million including commercial sales of NovoSorb BTM of $8.57 million.

The company is experiencing a strong increase in sales and is growing in existing markets while positioning itself for growth in a range of new markets over the next few years.

PolyNovo recently advised that the coronavirus outbreak is unlikely to have a direct impact on its business or sales going forward. Like Avita Medical, PolyNovo has suffered a major correction to its share price, losing a massive 40% since February 20.

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Phil Harpur owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited, Cochlear Ltd., and CSL Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.