We've all heard of the rally in the CSL Limited (ASX: CSL) share price and Cochlear Limited (ASX: COH) share price, but what about smaller players like Nanosonics Ltd. (ASX: NAN), Pro Medicus Limited (ASX: PME) and Paragon Care Ltd. (ASX: PGC)?
The CSL share price isn't the only one rallying!
Taking one look at the chart above it's clear that CSL shares are not the only game in town.
Your instant 5-share ASX healthcare portfolio
1. CSL
Despite its title as Australia's biggest healthcare company, CSL continues to chalk up more and more growth. The $56 billion CSL is a global biopharmaceutical giant, manufacturing blood plasma products for life-threatening diseases. It even does anti-venoms! In my ideal healthcare portfolio, it's a near certainty that CSL would be included.
2. Cochlear
Cochlear is a $7.5 billion biotechnology company, creating hearing aid devices for hundreds of thousands of people around the world. While there are competitors in the industry, Cochlear is the leader and continues to benefit from its brand appeal. Its shares also offer a handy dividend.
3. Nanosonics
Nanosonics is a $900 million company, having rallied some 460% over the past five years. Nanosonics develops and distributes its ultrasound probe device, Trophon. The device is used to efficiently disinfect ultrasound probes in hospital settings.
4. Pro Medicus
Melbourne-based Pro Medicus is a small cap, with a market capitalisation of $460 million. It is going from strength to strength. Pro Medicus has developed software that enables radiologists and doctors to inspect x-rays and other medical imagery from a smartphone. That may sound like a trivial phone app, but there are significant regulations, security issues and data processing requirements preventing others from doing the same thing.
5. Paragon Care
Paragon Care is the smallest company on this list, with a market capitalisation of $115 million. It is also arguably the riskiest, in my opinion. It distributes medical equipment and products in Australia and New Zealand. With acquisitions growing its product suite, Paragon care appears set to realise synergies while also growing its sales.
Foolish Takeaway
Australia's healthcare market is highly developed, offering investors the opportunity to participate in the growth of many quality businesses. Moreover, the rising cost of healthcare and ageing populations bode well for long-term returns.
