2 ASX 200 healthcare shares that outperformed in November 

ASX 200 healthcare shares finished flat for November, but there were a few sector players that shrugged off the weakness and outperformed.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

sdf

The S&P/ASX 200 Health Care Index (ASX: XHJ) finished November just 2.72% higher compared to the 9.5% surge in the S&P/ASX 200 Index (ASX: XJO). Sectors that benefitted from lockdowns including technology, ecommerce and consumer staples underperformed in November, while beaten up sectors such as financials, travel and real estate did the heavy lifting for the index.

ASX 200 healthcare heavyweights flat in November 

ASX 200 healthcare shares that dominate the index weightings finished relatively flat in November. The CSL Limited (ASX: CSL) share price closed 4% higher, the Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price was down just 1.25%, Sonic Healthcare Ltd (ASX: SHL) was the worst performing, down almost 6% and Cochlear Ltd (ASX: COH) shares finished up by only 2.5%. 

The underperformance of these heavyweights reiterate the rotation narrative into cyclicals and value stocks, and the recent fallout of stocks that benefitted from the lockdowns and COVID-19

Despite the flat performance, there were some hidden gems in the ASX 200 that delivered significant returns. 

Another crazy month for Mesoblast Limited (ASX: MSB)

It's been a wild ride for Mesoblast shares as the biotech continues its research while burning through cash. Previously, the Mesoblast share price crashed 40% after the United States Food and Drug Administration did not approve its highly anticipated Remestemcel-L treatment and advised an additional randomised controlled study. 

Rather than moving into the much needed commercialisation of its treatment, the company was sent packing to undertake additional study. This saw the Mesoblast share price nose dive more than 40% on 2 October. 

Its shares have since turned around to surge 35% in November. This follows the company's exclusive worldwide license and collaboration agreement with Novartis for the development, manufacture and commercialisation of its mesenchymal stromal cell (MSC) product, Remestemcel-L. 

The initial focus will be on the development of the treatment of acute respiratory distress syndrome (ARDS), including that associated with COVID-19. 

From a revenue perspective, Novartis will make an upfront US$50 million payment including US$25 million in equity. Mesoblast may receive a total of US$505 million pending achievement of pre-commercialisation milestones for ARDS indications. 

Polynovo Ltd (ASX: PNV) soars on expansion and sales growth 

The Polynovo share price pushed 30% higher in November into record territory. The company is experiencing a rapid increase in revenue as it commercialises its NovoSorb BTM product globally. 

When trauma to the skin occurs, large portions of the surface of the skin and its deeper layers are destroyed. NovoSorb BTM may be used to temporarily close the wound and aid the body in generating new tissue.

NovoSorb sales increased from $9.3 million in FY19 to $19.06 million in FY20. More recently, the company has been expanding its presence and growing its sales team across Europe and Asia. 

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., CSL Ltd., and POLYNOVO FPO. The Motley Fool Australia has recommended Cochlear Ltd. and Sonic Healthcare 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.

More on Share Gainers

Man smiling on top of rocks with mountains in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were in a nervous mood today.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Share Gainers

Why Beach Energy, Boss Energy, Cochlear, and Light & Wonder shares are pushing higher

These shares are having a good time on hump day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday session for ASX investors today.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Bannerman Energy, Clarity, DroneShield, Lotus Resources are charging higher

These shares are making their shareholders smile on Tuesday. But why?

Read more »

Person pretends to types on laptop drawn in sand.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors managed to ease out a gain from the markets today.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Paladin Energy, Santos, Tourism Holdings, and Woodside shares are racing higher

These shares are starting the week with a bang. But why?

Read more »

The silhouettes of ten people holding hands with their arms raised against the sky, as the sun rises or sets in the background.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were nervous this Friday, ending the week on a sour note.

Read more »