I think that ageing populations, increased chronic disease burden, and growing populations make the healthcare sector a great place to invest with a long term view.
Three top healthcare shares that I think are amongst the best in the sector are listed below. Here's why I would buy them:
CSL Limited (ASX: CSL)
I believe CSL is the best healthcare share on the Australian market and a great buy and hold option. Not only does the biopharmaceutical company have a strong core business and growing plasma collection network, it has a pipeline of drugs under development which could underpin its earnings growth over the next decade. Its shares may trade at a premium to the market average, but I believe its strong long term growth potential justifies this.
Nanosonics Ltd (ASX: NAN)
Another top healthcare share that I would consider buying is this infection control specialist. Nanosonics is the company behind the popular trophon EPR product which is used to clean ultrasound probes. The growing popularity of this product meant that in FY 2018 its total global installed base grew 25% to 17,740 units. I expect the release of its new trophon product to be a boost to its growth in FY 2019 and beyond, putting it in a great position to capture an increasing share of the overall market opportunity estimated to be 120,000 units globally.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a healthcare technology company that can be found at the small end of the share market. It provides a breast imaging analytics and analysis software which has been increasing its share of the U.S. breast screening market at an impressive rate over the last 12 months. This led to the company reporting a significant jump in its annual recurring revenues. Based on its strong start to Fy 2019, I think Volpara is well-placed to continue its impressive run this year. Especially given its recent product enhancements.
