A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME)

Why leading ASX biotech shares Polynovo Ltd (ASX: PNV) and Pro Medicus Limited (ASX: PME) have been on very different paths in 2021.

ASX biotech shares have had an up and down start to the year. While the S&P/ASX 200 Index (ASX: XJO) is up 1.8%, shares in Pro Medicus Limited (ASX: PME) and Polynovo Ltd (ASX: PNV) have been far more volatile.

A yellow warning sign with black and red arrows going up and down, indicating ASX share market chaos

Image source: Getty Images

Why ASX biotech shares are up and down in 2021

On the one hand, the Pro Medicus share price has climbed 28.5% and raced to a new all-time high. The company's fifth major contract win in sixth months was a key factor.

Pro Medicus has signed a 7-year, $40 million contract with Salt Lake City-based Intermountain Healthcare. That will see its Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain's radiology and subspecialty imaging departments.

However, it hasn't been all good news for investors in ASX biotech shares this year. While Pro Medicus shares soar, the Polynovo share price has fallen 35.9% this year.

Polynovo develops biodegradable medical devices that aid in skin tissue repair, led by its flagship Novosorb polymer. An important trading update on January 12 has been the catalyst for the ASX biotech share price slump this year.

Interestingly, Polynovo shares have fallen sharply despite a number of sales updates in recent months.

Polynovo reported a 31% increase in sales over the prior corresponding period (pcp) for the first half of FY21. The Aussie biotech's near term performance could be "volatile", according to managing director, Paul Brennan. Sales also slowed in October and November despite an uptick to finish the year.

The ASX biotech share soared in 2020 meaning some profit-taking may also be pushing the share price down.

Combined with the short-term uncertainty and ongoing impact of the coronavirus pandemic, the Polynovo share price has been under pressure to start the year.

Foolish takeaway

2021 has been the tale of two ASX biotech shares. While Pro Medicus shares soar, the Polynovo share price has been smashed this year.

Both companies are yet to report their half-year results to the market which are expected later this month.

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia has recommended Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Numerous Australian dollar notes laid out.
Healthcare Shares

I'd buy 6,462 shares of this ASX stock to aim for $200 a month of passive income

This business can provide very healthy dividends.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Healthcare Shares

UBS thinks Telix Pharmaceuticals shares will go how high?

Good news out of the US has led to a share price target upgrade.

Read more »

Scientist taking down notes from a tablet, with two other scientists working in the background.
Healthcare Shares

Healius vs Australian Clinical Labs: Which ASX pathology share wins?

Healius and Australian Clinical Labs are both top pathology providers, but one stands out for profits, dividends, and recent momentum.

Read more »

Doctor looks at a graph on a tablet.
Healthcare Shares

Ramsay Health Care vs Sonic Healthcare: Which healthcare stock is better value?

Which offers better value — Ramsay Health Care or Sonic Healthcare? I compare their fundamentals, dividends, momentum and reveal my…

Read more »

A doctor looks unsure.
Healthcare Shares

CSL shares jump 93%: Is the ASX biotech stock a buy, sell or hold for October?

Can the CSL share price rebound keep going?

Read more »

Two doctors having a discussion about a patient diagnosis, holding digital tablet.
Healthcare Shares

Are CSL shares a buy after its big news?

I look at what CSL’s latest drug development deal could mean for the healthcare giant’s long-term growth.

Read more »

A female scientist in a laboratory setting using a tablet to review data, with a male scientist working in the background.
Healthcare Shares

ResMed vs Fisher & Paykel Healthcare: Which is better value?

How do ResMed and Fisher & Paykel compare on value, income, and share price momentum? Here’s my verdict on which…

Read more »

Happy doctor using her laptop.
Healthcare Shares

CSL unveils exclusive Alentis deal to advance rare disease treatments

CSL unveils a major partnership for rare disease drug development, enhancing its global nephrology strategy.

Read more »