There are few sectors on the Australian share market which I believe have as strong long-term growth prospects as the healthcare sector.
In light of this, I think the sector is a great place to look for buy and hold investments. Two shares which I would buy today are listed below:
CSL Limited (ASX: CSL)
Thanks to the strong demand for its immunoglobulins and specialty products and its almost profitable vaccines business, I believe this biotherapeutics company is positioned perfectly to deliver above-average earnings growth for the next few years.
In FY 2018 CSL expects net profit after tax to be in the range of $1,480 million to $1,550 million in constant currency terms. At the high-end of it guidance range, it means growth of approximately 16% year-on-year. I believe this level of growth and its long-term prospects justifies the premium its shares trade at today.
Nanosonics Ltd. (ASX: NAN)
With the Nanosonics share price down 11% since the start of the year, I think now could be a great time to snap up the shares of this infection control specialist. Like CSL, Nanosonics' shares do trade at a premium to the market-average, but I believe it is more than deserving of this price tag.
After all, in FY 2017 Nanosonics posted a 58% increase in gross profit thanks largely to strong demand for its trophon system in the United States. Despite the rapid adoption of the trophon system, management still estimates that it has only captured 12% of its estimated global market opportunity of 120,000 units. Considering the product is widely regarded as the best in its class, I suspect Nanosonics has a significant runway for growth ahead of it.
