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%.
