One area of the share market which I think has strong long term growth potential is the healthcare sector. This is due to ageing populations, increased chronic disease burden, population growth, and technological advances to name just four drivers.
With that in mind, I think it is a great place to look for long-term investments. Three small cap healthcare shares which I think could be great options are listed below:
Alcidion Group Ltd (ASX: ALC)
Alcidion is an informatics solutions provider which has caught my eye with some impressive growth in FY 2019. Alcidion delivered a 33% increase in revenue to $16.9 million in FY 2019 thanks to growing demand for its healthcare analytics software which improves the efficacy and cost of delivering services to patients and reduces hospital-acquired complications. I believe it is well-positioned for growth thanks to the growing trend for healthcare organisations to shift to a paperless environment.
Telix Pharmaceuticals Ltd (ASX: TLX)
Another small cap healthcare share to consider is Telix Pharmaceuticals. It is a clinical-stage biopharmaceutical company which is developing an advanced pipeline of molecularly-targeted radiation (MTR) products. MTR is an exciting approach which chemically links radioactive isotopes to target molecules specific to cancer cells. Whilst the company has an advanced pipeline of products, one that caught my eye in particular is TLX591. This is a metastatic prostate cancer radionuclide therapy which management estimates could be worth $2 billion in late-stage disease alone.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is provider of software that uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been a very impressive performer over the last few years thanks to the growing popularity of its software with radiologists across North America. Due to the quality and importance of the software, recent acquisitions, and its growing footprint, I expect the company to deliver further strong growth in its key metrics in FY 2020 and beyond.
