3 exciting small cap healthcare shares on my watchlist

Ellex Medical Lasers Ltd (ASX:ELX) shares are one of three at the small end of the healthcare market worth watching…

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One part of the market that I think has bright long-term growth prospects is the healthcare sector.

Because of this, I believe it could be well worth looking at some of the smaller companies in the sector that have the potential to grow meaningfully over the next decade.

Three which I think deserve a spot on your watchlist are as follows:

Ellex Medical Lasers Ltd (ASX: ELX)

Ellex Medical Lasers is a medical device company focused on the development, manufacture, and sale of lasers and diagnostic equipment for the treatment of eye diseases. The company's performance has been a touch mixed over the last 18 months, but yesterday it revealed a return to form at its annual general meeting. For the first four months of FY 2018 sales have increased 27% to $24.7 million. A key driver of this growth was a 38% lift in the sales of its Ellex iTrack product in the United States.

Telix Pharmaceuticals Ltd (ASX: TLX)

Led by Dr Christian Behrenbruch, Telix is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals. The company has been very busy this year with trials, collaborations, and acquisitions. All in all, I believe its hard work this year means the company is well-positioned to grow strongly over the long-term.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a healthcare technology company providing breast imaging analytics and analysis software. Its software has been growing its share of the U.S. breast screening market at an impressive rate and shows no signs of slowing. The good news is that with much of its breast imaging analytics data flowing to the cloud, it now has one of the biggest cross-vendor data sets in mammography. As well as using this data to help detect breast cancer early, it intends to leverage it to develop new products.

Motley Fool contributor James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of Ellex Medical Lasers Limited. 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.

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