Why these ASX healthcare shares could be market beaters in 2020

I think ResMed Inc. (ASX:RMD) and these ASX healthcare shares could be market beaters in 2020….

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Due to populations around the world getting older and chronic disease burden increasing, demand for healthcare services continues to rise.

I believe this trend will continue for several decades, which could make the healthcare sector a great place to look for investments.

Three healthcare shares that I feel could be market beaters in 2020 are listed below. Here's why I like them:

Nanosonics Ltd (ASX: NAN)

Nanosonics is the infection control specialist behind the trophon EPR product. This industry-leading product provides users with a safe, versatile and simple way to prevent ultrasound probe cross-infection. Its installed base grew 18% in FY 2019 to 20,930 units. This led to a sizeable jump in revenue from unit sales and the consumables it requires. The good news is that its global addressable market is estimated to be 120,000 units. This gives Nanosonics a long runway for growth. Which looks set be boosted greatly in the near term with the imminent release of new products targeting unmet needs.

Paradigm Biopharmaceuticals Ltd (ASX: PAR)

Paradigm is a biopharmaceutical company with a lot of potential. It is currently focused on repurposing Pentosan Polysulfate Sodium (PPS) to treat osteoarthritis. The trial results of the drug, ZILOSUL, have been very promising, which is a big positive given its market opportunity. Management estimates that the United States market opportunity could be as large as US$27.9 billion per annum. Another highlight is that it recently raised significant funds through a capital raising. This left it with a cash balance of ~$75 million at the last count. I believe this is more than sufficient to see Paradigm through to a commercial launch of ZILOSUL if it gets to that stage.

ResMed Inc. (ASX: RMD)

A final healthcare share to consider buying is ResMed. I think its shares could provide investors with market-beating returns over the next decade thanks to its industry-leading sleep treatment products and the proliferation of sleep apnoea. The company estimates that there are a whopping ~1 billion people impacted by sleep apnoea globally.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia has recommended ResMed Inc. 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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