ASX healthcare shares have been among the top-performing market sectors over the last 12 months. The demand for healthcare products and services continues to grow higher around the world.
In this article I will take you through two of my top ASX healthcare shares picks: CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH). Here's why they are both on my buy list right now:
CSL
CSL has evolved over the past 3 decades to become a global market leader in blood plasma research and disease treatment. The company is now a highly successful global business that provides a broad range of research treatments that are protected by product patents. This is backed by a highly efficient global production and distribution network, reaching more than 60 countries. CSL delivered a very strong 11% increase in revenue to US$4,980 million for the six months to 31 December 2019
This ASX healthcare share has also played a vital role during the coronavirus pandemic. It recently entered into a new agreement for the development of a COVID-19 vaccine candidate.
I believe that the CSL growth story is set to continue over the next decade, driven by a strong new product development pipeline. With its share price down by around 18% on its 12-month high in February, I feel that now could be a good time to add CSL shares to your ASX portfolio.
Cochlear
Another company that appeals to me in the ASX healthcare sector right now is Cochlear.
The Cochlear share price fell heavily during the early phase of the coronavirus pandemic. Since then, it has only seen a relatively weak and partial recovery. Cochlear's shares are still down by around 25% from mid February. There has been a sharp reduction in elective surgeries in is operating markets, particularly in the United States and Western Europe. However, elective surgeries are now beginning again in some markets including Australia. I think that the significant recent reduction in the Cochlear share price provides investors with a good buying opportunity. I remain confident about Cochlear's long term future, driven by the growing demand for quality hearing products and solutions over the next few decades.
Foolish takeaway
Both CSL and Cochlear are two quality ASX healthcare shares that I think would make good buy and hold options over the next five years. I believe both are well placed to deliver above average shareholder returns during this period. With recent reductions in their share prices since the onset of the pandemic, investors have the opportunity to snap them up at more attractive prices.
