Thanks to technological advancements and the expected growth in demand for healthcare services over the next couple of decades, I think the healthcare sector is a great place to look for buy and hold investments.
This is especially the case at the small end of the market where a number of companies are aiming to disrupt the status quo. While these shares may not necessarily be ready for investment, I think they are more than deserving of a spot on your watchlist.
Here’s why I like them:
CogState Limited (ASX: CGS)
CogState is an exciting small-cap share which provides cognitive function testing services that help large pharmaceutical companies measure the effectiveness of potential new treatments for common cognitive ailments. The company has a decent balance sheet with no debt, a track record of growth, and is close to becoming consistently profitable.
Cynata Therapeutics Ltd (ASX: CYP)
Cynata is a stem cell and regenerative medicine company which is behind the Cymerus technology and CYP-001 mesenchymal stem cell product. Its impressive Cymerus technology is able to produce an unlimited number of high quality stem cells at a low cost. These stem cells can then be used to treat numerous diseases including Graft versus Host Disease and cardiovascular disease. CYP-001 was recently granted Orphan Drug Designation by the U.S. FDA and delivered positive trial data from its Phase 1 clinical trial.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a medical technology company which specialises in breast imaging analytics and analysis software. It has been growing its recurring revenues at an explosive rate thanks to the rapid adoption of the technology in the United States. At the last count, its software handled 3.2% of all women screened for breast cancer in the country. Management appears confident that the growing demand will lead to even more market share gains in FY 2019 and is targeting a share of 9%.
Bonus pick: The ASX small cap healthcare share up 285% with no sign of stopping...
One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...
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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.