These were the best performing ASX 200 healthcare shares in October

Here's why ResMed (ASX: RMD) and two others beat the market and emerged as top performing ASX 200 healthcare shares in October.

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S&P/ASX 200 Index (ASX: XJO) healthcare shares have surprisingly underperformed other sectors such as energy, consumer staples, financials and technology in October. This likely follows a prior period of outperformance due to COVID-related tailwinds for healthcare businesses. However, there were still market-leading winners amongst ASX 200 healthcare shares. Here are the best performers from October. 

October's top performing ASX 200 healthcare shares

Pro Medicus Limited (ASX: PME

The Pro Medicus share price delivered a return of 20% in October. Interestingly, this wasn't on any significant market sensitive news besides two contract wins signed across September and October. 

On 11 September, Pro Medicus signed a $25 million, 7-year deal with NYU Langone Healthcare. NYU is rated as one of the top ten hospitals in North America, operating an academic institution and multiple hospitals that are major health providers in their respective cities. On 15 October, Pro Medicus also signed a $10 million, 7-year deal with LMU Klinikum. LMU is one of the largest university hospitals in Germany and extends Pro Medicus' footprint in the European hospital segment. 

Polynovo Ltd (ASX: PNV

The Polynovo share price had been bouncing within the range of $2.10 to $2.40 between July and October. Its share price started to pick up momentum towards the end of October which saw it deliver a total return of 17% for the month. 

On 28 October, the company announced that its NovoSorb BTM product had received approval by the Taiwan FDA for sale in Taiwan. NovoSorb BTM is a man-made synthetic polymer that can be used to temporarily close wounds and aid the body in generating new tissue. Polynovo said it had contacted Evermed, a Taiwan-based distributor to sell BTM. Polynovo Managing Director, Paul Brennan, said, "Taiwan has an advanced health system and has a population of circa 23 million concentrated in three regions. The dermal matrix market in Taiwan has good potential for us in reconstructive surgery, trauma and burns."

Resmed CDI (ASX: RMD

This ASX 200 healthcare share delivered its upbeat quarterly update on the last day of October which saw the Resmed share price jump almost 10% on the day. Across October, the Resmed share price delivered a total return of nearly 17%. 

The Resmed share price had already started to gain momentum at the start of October after hovering around 6 month lows. Its quarterly update provided a much needed boost in sentiment which highlighted a 10% increase in revenue to $751.9 million and a 27% increase in net operating profit. Its firm result was largely driven by strong sales across its mask product portfolio including increased demand for its ventilators due to COVID-19. 

Resmed's standout performance in October has recovered most of its share price losses incurred earlier this year due to a weaker than expect FY20 result. This now brings the Resmed share price within 5% of its previous all-time high. 

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 POLYNOVO FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended ResMed Inc. 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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