When investing in the healthcare sector most investors will turn to the likes of CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD).
This isn't at all surprising, as these two are amongst the highest quality companies on the share market with a long track record of generating strong returns and have positive long-term outlooks.
But they're not the only healthcare shares that I think are worth considering. Three fast-growing healthcare shares I would buy this month are as follows:
Nanosonics Ltd (ASX: NAN)
Nanosonics is an infection control specialist which I think has a very bright future ahead of it. Last month I thought it delivered one of the strongest results during earnings season when it posted a 36% increase in first half sales to $40.7 million and a 195% lift in operating profit before tax to $11 million. This was driven by an 11% lift in capital revenue and a 59% increase in consumables/services revenue. At the end of the half the company had increased the installed base of its trophon EPR product to 19,310 units, which is still only scratching the surface of a total addressable market of 120,000 units.
Pro Medicus Limited (ASX: PME)
Another strong result during earnings season came from this healthcare technology company. Pro Medicus is the company behind the popular Visage health imaging software. Demand for its products has grown strongly in FY 2019, leading to the company posting a 59.4% increase in half year revenue to $25.3 million and a 79.9% jump in underlying net profit after tax to $9.2 million. This was driven by strong growth in all its key markets.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is a New Zealand-based medical technology company which provides software that uses AI imaging algorithms to assist in the early detection of breast cancer. At the end of the third quarter the company had grown its annual recurring revenue (ARR) by 56% since the start of the year to NZ$5.6 million. This was driven by strong market share gains in the U.S. market, where the company now commands a 7% share of the breast cancer screening market. Due to the quality of its product and the size of the market, I believe there is still a significant runway of growth ahead of the company, which could make it worth considering a small investment in its shares.
