One area of the Australian share market which I think has particularly strong long-term growth prospects is the healthcare sector.
Due to the expected increase in demand for healthcare services due to ageing populations and increased chronic disease burden, I believe that a number of companies are in a strong position to grow their bottom line at an above-average rate for the foreseeable future.
Here are two healthcare shares which I think investors should consider today:
Medical Developments International Ltd (ASX: MVP)
Due to the global expansion of this healthcare company's Penthrox pain management product, I believe Medical Developments International could have a very bright future ahead of it. The company aims to make Penthrox the analgesic of choice around the world and I believe it has a great chance of succeeding.
Earlier this week the Joint Royal Colleges Ambulance Liaison Committee in the UK recommended Penthrox be used for adults with injuries causing moderate to severe pain. Management expects this will lead to its use in every ambulance in the UK.
At present Penthrox is available in 16 countries worldwide, but over the next 12 months the company expects to have it approved for sale in more than 37 new countries. I feel this is likely to lead to a significant lift in revenue over the next few years, which could make Medical Developments International a good buy and hold investment option.
Nanosonics Ltd. (ASX: NAN)
I think that this infection control specialist is another great option in the healthcare sector thanks to its best-in-class trophon EPR product. The environmentally friendly system is wholly effective at disinfecting ultrasound probes, whereas current toxic disinfectants being used are largely ineffective.
Unsurprisingly this has led to its installed base growing at an impressively strong rate. In FY 2017 the company grew the product's installed base to 12,400 units in North America, bringing its global installed base to 14,100 units. Management believes there is an addressable market of 120,000 units globally, with 40,000 of these in North America.
I believe this provides Nanosonics with a significant runway for growth which makes it a great option for investors today.
