Up nearly 33% in 12 months. Can the CSL share price climb higher?

The CSL Limited (ASX: CSL) share price rocketed 32.53% higher in FY20 but is the Aussie biotech positioned for more growth this year?

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The CSL Limited (ASX: CSL) share price has been a consistently strong performer on the ASX.

Shares in the Aussie biotech giant climbed 32.53% in the last 12 months and outperformed the S&P/ASX 200 Index (ASX: XJO). But can the Aussie large-cap share repeat the trick in FY21?

Why the CSL share price can climb higher

Despite being a top growth share for many years, I think the Aussie biotech company's value can continue to climb.

For one, the CSL share price hit a new all-time high of $342.75 before the February/March bear market.

Given CSL is currently trading at $287.00 per share, that says to me there is strong growth potential.

The coronavirus pandemic has certainly thrown a spanner in the works for ASX shares and the broader economy. It's tough to value any share at the moment, let alone those in the healthcare sector.

However, I think CSL has some really strong growth initiatives that can strategically position the company in the coming years.

For example, CSL is indirectly involved in the COVID-19 vaccination development effort through its partnership with University of Queensland. The Aussie biotech is also leveraging its blood plasma expertise to try to develop a plasma-derived therapeutic to treat serious complications of COVID-19.

Beyond just the pandemic though, CSL is also continuing to do some great work. The CSL share price in recent years has been built on strong research and development (R&D) and a successful business model.

CSL boasts a team of over 1,700 R&D experts and has innovation partnerships across Australia, Europe and the United States. In fact, CSL invested US$832 million in its R&D portfolio in FY19 or 9.7% of its total revenue. That strong focus on reinvestment and innovation has been a real key to the CSL share price growth in past decades.

The group is currently undertaking some promising work in the treatment of respiratory diseases like asthma. Given the prevalence of these sorts of conditions around the world, the potential addressable market and possible earnings from product breakthroughs are enormous.

Foolish takeaway

I personally think we could see the CSL share price close out this calendar year above the $300 per share mark. Of course, nothing is guaranteed, but it's hard to bet against such an innovative and successful ASX share like CSL.

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 CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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