Due to a number of tailwinds including population growth, ageing populations, and improving technology, I believe the healthcare sector is a great place to look for long-term investments.
Three top healthcare shares which I believe are well-positioned to outperform over the next decade are listed below. Here's why I would buy them:
Cochlear Limited (ASX: COH)
As Cochlear is a leading developer, manufacturer, and distributor of cochlear implantable devices for the hearing impaired globally, I believe it is well-placed to benefit from the ageing population tailwind. This is because as people age, their hearing will more often than not fade and require some form of assistance. According to the World Health Organization, it estimates that there will be 1.5 billion people over the age of 65 by 2050, which is an increase from 524 million in 2010. This should ensure that Cochlear's addressable market grows at a solid rate over the next three decades.
CSL Limited (ASX: CSL)
CSL is the biotherapeutics giant behind the CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies and Seqirus is the second biggest company in the influenza vaccines industry. Due to the quality of these businesses, their talented management and research teams, and their long runways for growth, I believe CSL is one of the best buy and hold options in the healthcare sector and more than worth the premium its shares trade at.
Pro Medicus Limited (ASX: PME)
Another top option in the sector is this healthcare technology company. Pro Medicus provides a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups worldwide. Demand for its highly-regarded software has been growing strongly, leading to the company posting an impressive 59.4% increase in half-year revenue to $25.3 million and a massive 79.9% jump in underlying half-year net profit after tax to $9.2 million. Whilst its shares look fully valued now, I believe its sizeable market opportunity makes it worth considering with a long-term view.
