Retire healthy and wealthy with these 4 growing medical companies

One pick, Sirtex Medical Limited (ASX:SRX), is up 90% already this year!

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Australian companies have long been at the forefront of medical research and innovation. We're lucky to have listed on the ASX a number of companies that dominate global markets in their respective fields.

The likes of Cochlear Limited (ASX: COH), CSL Limited (ASX: CSL) and ResMed Inc. (CHESS) (ASX: RMD) are global players and consistently named among the best stocks on the ASX for just that reason.

Global Tailwinds

Healthcare companies are poised for huge growth if global trends come to fruition. Not only are the demographics of developed countries changing, but residents of developing countries are demanding better healthcare and treatment. If our global healthcare companies can position themselves for these markets then shareholders will surely be rewarded over the next 5 to 10 years.

4 Top Picks

CSL Limited is one of Australia's medical leaders. The company develops products from blood plasma and has a range of new products due to come into the market over the next 2 to 3 years. The company saw profit rise by 8% last financial year and is expected to see another 12% growth this year. CSL is also continuously buying back its stock, which has been linked with share price outperformance.

Speaking of outperformance, liver cancer treatment company Sirtex Medical Limited (ASX: SRX) has jumped 90% already in 2014 as it delivered a 34% increase in revenue and 30% jump in net profit. The company's SIR-Sphere technology is proving to be extremely effective and dose sales are consistently rising each quarter. The shares look expensive but investors are counting on continued strong growth going forward.

Another strong performer has been medical imaging company Capitol Health Ltd (ASX: CAJ). Capitol is up 60% in 2014 after pleasing investors with a 45% jump in revenue and 100% jump in profit in the year to 30 June. The company currently owns clinics in Victoria but is expected to expand to other states soon.

Last but not least is health insurer NIB Holdings Limited (ASX: NHF). NIB should benefit from an increased reliance on private insurers to cover medical expenses of aging Australians. Analysts also expect NIB will be a takeover target of one of the larger firms as the sector is further rationalised.

Motley Fool contributor Andrew Mudie does not own shares in any companies mentioned. You can find Andrew on Twitter @andrewmudie

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