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2 ASX biotech shares that could be the next CSL

Amid the insane volatility of financial markets, the CSL Limited (ASX: CSL) share price is actually trading more than 15% higher for the year. The company’s strong performance reflects its status as one of the finest shares listed on the ASX.

CSL has seen global success on the back of a solid stream of organic revenue, innovation and persistent investment in research and development.

Here are 2 ASX biotech shares that share similar characteristics to CSL and could potentially become the next biotech giants.

Medical Developments International Ltd (ASX: MVP)

Medical Developments is an Australian biotech company that specialises in emergency pain relief and respiratory products. These products are used in various medical settings including the Australian Defence Force and Australian Ambulance Service. Many people who have been in an ambulance might have seen the company’s flagship product Penthrox, colloquially known as the “green whistle”. 

Penthrox is a fast-acting, non-opioid analgesic that is used for patients with trauma or for surgical procedures. The product currently has approval for sale in over 40 other countries around the world, including the UK and across Europe, and is pending FDA approval in the lucrative US market.

Over the next 6 to 12 months, Medical Developments is expected to receive more approvals for its products and launch in more countries. In addition, the company has a possible licensing deal for its new ‘continuous flow’ drug manufacturing technology. 

The Medical Developments share price has plunged nearly 40% since mid-February and could potential offer great value for long-term investors.

Mesoblast Limited (ASX: MSB)

Mesoblast is a world leader in developing off-the-shelf (allogeneic) regenerative medicines for inflammatory diseases. The company has used its cell therapy technology to establish a broad portfolio of commercial products and has a large pipeline of therapies in late-stage development and testing.

Just this week, Mesoblast announced it would begin formal trials on its remestemcel-L product in treating patients with COVID-19. If proven effective, the drug could be monumental for medical science and biotechnology in Australia.

Should you buy?

CSL has long been regarded as one of Australia’s highest quality businesses. In a country notable for its iron ore and big four banks, CSL has shown the unharnessed potential in the Australian biotechnology sector.

Although CSL is in a different echelon to other biotech companies, Medical Developments and Mesoblast have the potential to blossom in the long-term. I think a prudent strategy would be to keep a watchlist of ASX biotech shares and wait for positive price action before making an investment decision.

Where to invest $1,000 right now

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Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Medical Developments International Limited. The Motley Fool Australia has recommended Medical Developments International 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.

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