ASX biotech shares have been persistent outperformers in recent times. CSL Limited (ASX: CSL) is one of the largest ASX shares by market capitalisation with a $127.6 billion valuation based on the current CSL share price.
However, CSL shares aren't your only option for biotech exposure in the Aussie share market.
What other ASX biotech shares are available?
Polynovo Ltd (ASX: PNV) has been another top performer in recent years. Polynovo's proprietary NovoSorb BTM product has proven to be a highly successful solution in the treatment of severe burns.
The Polynovo share price is now up 15.6% in 2020 and 1,854.6% in the last 5 years. That's good news for investors who backed the ASX biotech share from an early stage.
Then there's Mesoblast limited (ASX: MSB). Mesoblast is an Aussie regenerative medicine company that provides treatments for inflammatory ailments, cardiovascular disease and back pain.
The Mesoblast share price was hammered in yesterday's trade after a United States Food and Drug Administration (FDA) report.
The ASX biotech share crashed 31.0% lower after the release of the FDA briefing document. The FDA noted concerns about the clinical performance of Mesoblast's treatment for paediatric steroid-resistant acute graft versus host disease.
That's disappointing news for shareholders but I think the long-term outlook for Mesoblast is still intact. The company still has some exciting products in Phase 3 trials which could be big money earners in the future.
Is today's CSL share price the best biotech buy?
CSL is the obvious choice if you're looking for safety. It has an extensive history of research and development (R&D) success and is a big fish in the industry.
That blue-chip status could help the ASX biotech share in the current volatile market. It could also provide some piece of mind for investors who don't want to buy a speculative growth share.
However, I think there is also some potential upside for both Polynovo and Mesoblast.
Polynovo is looking to extend the application of the NovoSorb BTM product into other, lucrative industries. That includes breast augmentation and hernia treatment markets.
For Mesoblast, I think a 31.0% share price drop could present a tasty buying opportunity. That's a big mental hurdle to overcome for investors and you'd have to really believe in the company's long-term success.
However, ASX biotech shares can rise and fall with critical decisions on their products. That means I wouldn't be writing off the Mesoblast share price solely based on the FDA announcement.
