2 hot ASX healthcare stocks that might be the next CSL

Could Nanosonics Ltd (ASX: NAN) be the next CSL?

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I have long considered the healthcare industry as being one of the best areas to invest in for the long term. Our population is living longer and healthier lives than ever before, and this brings opportunities that could last decades. CSL Limited (ASX: CSL) is one of the best healthcare stocks on the ASX, but it is now the third-largest ASX company by size. Although I have no doubt it will continue to dominate its fields, I also think its days of doubling in value every few years are over.

So here are 2 hot healthcare growth stocks that might just be the next CSL.

Polynovo Ltd (ASX: PNV)

Polynovo is an old company with a new lease on life. Founded in 1998, it has been attracting newfound attention over the past year as its flagship Novosorb products have been flying off the proverbial shelves. Novosorb is a synthetic polymer used to treat severe burns and other skin ailments. It reportedly has an unprecedented success rate, quantified by the 435% increase in sales over the past year.

Novosorb also recently gained approval for sale to the US Department of Defense and Veterans Affairs, so some people in high places clearly see the value of this product. Polynovo has ambitious plans to ""transform from a dermal focused device company to a multi-focused medical device manufacturer and marketer", so I think this one is worth keeping an eye on.

Nanosonics Ltd. (ASX: NAN)

Nanosonics is a stock that's probably on every growth investors radar by now as it has more than doubled in value over this year so far (and its only September!). In fact, it's up 4.72% in today's trade alone. What has been turning heads is the success of the company's flagship product, Trophon. Trophon is a device that uses ultrasound to efficiently disinfect medical equipment such as probes and it has seen phenomenal growth in uptake. This helped Nanosonics to post a 200% rise in profits for the 2019 financial year and the company is predicting similar growth for FY20. A company that owns a game-changing device like this might be a good bet in the healthcare space.

Foolish takeaway

Both of these companies have revolutionised their areas of the healthcare industry and have the potential to be gifts that keep on giving. Keeping an eye on the 'movers and shakers' in this tailwind industry is a great way to be investing (in my opinion, anyway).

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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