MENU

3 small cap healthcare shares to watch

As well as the tech sector, one of area of the share market which I think is home to a large number of promising small cap shares is the healthcare sector.

Thanks to technological advancements and the expected growth in demand for healthcare services over the next couple of decades, I feel it is a great place to look for future blue chips.

While not all of them may be ready for investment, three small cap healthcare shares which I think are worth keeping an eye on are listed below. Here’s why I like them:

Bionomics Ltd (ASX: BNO)

Bionomics is an Adelaide-based biotechnology company with a pipeline of promising drugs. The main one, in my opinion, is its BNC210 product. Last month the company announced a Phase 2 trial of the drug for the treatment of agitation in the elderly. Management believes that agitation in elderly patients is a major unmet clinical problem, which occurs both in the acute setting in hospitalised patients and chronically in nursing home residents. Considering current options include benzodiazepines and antipsychotics, which can have severe adverse effects in the elderly including sedation, stroke and sudden death, BNC210 may fill a significant unmet clinical need. It might be a touch too soon to invest, but it is certainly worth keeping on your watchlist.

Cynata Therapeutics Ltd (ASX: CYP)

This stem cell and regenerative medicine company’s shares have been on a tear over the last 12 months and have deservedly risen over 110%. When I recommended Cynata about a year ago, I talked about how impressed I was with its Cymerus technology and the promising CYP-001 mesenchymal stem cell product. Since then there have been positive developments that make CYP-001 even more attractive. These include it being granted Orphan Drug Designation by the U.S. FDA and the release of positive trial data from its Phase 1 clinical trial. I think this makes it one to watch.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a breast imaging analytics and analysis product specialist which has been growing its annual recurring revenue at an impressive rate in FY 2018. The catalyst for this was the company’s market share gains in the United States. According to its most recent update, Volpara’s software now handles 3.2% of all women screened in the United States for breast cancer. With demand for its software growing strongly, management is targeting a 9% share of the market in FY 2019. This could lead to further top line growth. Though it is worth noting that it is a high-risk investment option due to its lofty valuation.

Looking for more up and comers with blue chip potential? Then look no further than these stars of the future.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!