One area of the market that I think is a good place to look for buy and hold options is the small end of the healthcare sector.
I think here you'll find a number of companies that have the potential to grow significantly in the future thanks to favourable tailwinds and new technologies.
Three small cap healthcare shares I am watching closely are listed below. Here's why I like them:
Medadvisor Ltd (ASX: MDR)
The first small cap healthcare share to watch is Medadvisor. It is a growing software systems developer which is addressing gaps in personal medication adherence. The company's app connects to pharmacy dispensing systems to automatically retrieve medication records and drive an intelligent training, information, and reminder system to ensure correct and reliable medication use. In addition, Medadvisor is also rolling out a medicine delivery service and a telehealth solution.
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 developing a portfolio of clinical-stage oncology products that address significant unmet medical need in renal, prostate, and brain cancer. I believe the company has a lot of potential and could prove to be a great long term investment.
Volpara Health Technologies Ltd (ASX: VHT)
Volpara is healthcare technology company. It provides software that uses artificial intelligence imaging algorithms to assist with the early detection of breast cancer. It has been a very strong performer in recent years due to the growing popularity of its software with radiologists. And thanks to the quality of the software, recent acquisitions, and its growing North American footprint, I expect the company to deliver further strong growth in FY 2021 and for many years to come.
