Polynovo Ltd (ASX: PNV) shares could be about to surge in 2020. The ASX 200 healthcare company boasts a market capitalisation of $1.71 billion at the moment, but I think it could grow to be the next CSL Limited (ASX: CSL).
Why the Polynovo share price is climbing higher
Concerns about COVID-19 smashed the S&P/ASX 200 Index (ASX: XJO) in late February and for most of March. The Polynovo share price was no different and slumped as low as $1.32 per share on 23 March.
Since then, the ASX 200 has rebounded and gone on a bullish run. Polynovo has followed suit – at the time of writing, the ASX healthcare share is up 96.21% in the space of just 6 weeks. Pretty impressive, even for an Aussie growth share.
But I think that this 96.21% gain could be just the beginning. Polynovo has a strong research and development (R&D) pipeline and is continuing to bring more products to market. I can't see demand for medical technology and Polynovo's flagship NovoSorb product subsiding any time soon.
In fact, I think Polynovo could follow in CSL's footsteps to become the next large-cap ASX healthcare share.
Will Polynovo be the next ASX healthcare leader?
CSL remains the gold standard in terms of ASX healthcare shares. The biotech giant is worth a whopping $137 billion right now and is up more than 40,000% since its IPO.
Polynovo could be on a similar path if things continue going well. The medical group reported record US quarterly sales for the March quarter and this COVID-19 volatility looks to be a minor speed bump.
The technical environment remains good for the company in 2020. In fact, the Polynovo share price is up more than 3,000% in just 5 years and could be one to watch in the years to come.
Foolish takeaway
It's hard to pick value with all the noise in the markets right now. However, Polynovo looks to be a high-quality growth share with solid R&D prospects. That could make Polynovo a top ASX healthcare share to buy despite the economic uncertainty we're seeing today.
