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3 ASX small cap healthcare shares which could have big futures

When it comes to investing in world class healthcare companies, the Australian share market offers a number of excellent options including the likes of Cochlear Limited (ASX: COH) and CSL Limited (ASX: CSL).

While these blue chip shares still have a lot of growth left in them, the law of large numbers suggests that they will find it difficult to replicate their impressive historical growth rates as they grow larger.

That doesn’t mean they won’t be great investments moving forward (I class both as buys), but it does mean investors who want explosive levels of growth may need to look at alternative options.

Luckily, the local market has a number of up-and-coming healthcare shares that I think investors should take a closer look at. Here are three to consider:

Alcidion Group Ltd (ASX: ALC)

I think Alcidion is worth adding to your watch list today. It is an informatics solutions provider which develops and sells healthcare analytics software for hospitals and healthcare providers. Its software has been designed to both improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Whilst it is early days, I’ve been impressed with the progress the company has been making. This includes its first major contract win with the Dartford and Gravesham National Health Service (NHS) Trust in the United Kingdom. If this contract is a success, it could potentially be the first of many contract wins for the company. Especially with the NHS is currently transitioning to a paperless environment.

Invex Therapeutics Ltd (ASX: IXC) 

Invex is a growing biopharmaceutical company which I think is well worth keeping a close eye on. This is because Invex has a major market opportunity thanks to its focus on treatments for neurological conditions derived from or involving raised intracranial pressure. This includes Idiopathic Intracranial Hypertension, acute stroke, and traumatic brain injuries. One person that appears to believe the company has a lot of potential is Fortescue Metals Group Limited (ASX: FMG) chairman Andrew Forrest. Mr Forrest was an early backer of the company.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is a clinical-stage biopharmaceutical company focused on the development of diagnostic and therapeutic products based on targeted radiopharmaceuticals or molecularly-targeted radiation. It is currently developing a portfolio of clinical-stage oncology products that address significant unmet medical needs for a number of cancers and has recently announced several key partnerships and distribution agreements. 

And here is another small cap share operating in the healthcare space which could have a very big future ahead of it.

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James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia has recommended Alcidion Group Ltd and Cochlear Ltd. 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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