Due to the expected growth in demand for healthcare services globally because of ageing populations, improving technologies, and increasing chronic disease burden, I believe the healthcare sector is a great place to invest with a long-term view.
But with so many options to choose from in the sector, it can be hard to decide which ones to buy.
To narrow things down I have picked out three ASX healthcare shares I think could be long-term market beaters:
CSL Limited (ASX: CSL)
I believe this biotherapeutics company is well-positioned for long term growth. This is due to the quality of its CSL Behring and Seqirus businesses. Both are leaders in their industries, have world class product portfolios, and lucrative product development pipelines. This pipeline is underpinned by the company investing 10% to 11% of sales into research and development activities each year. For example, in FY 2019 CSL invested US$832 million into research and development. Management believes these investments are the engine that will help drive sustainable growth and I completely agree.
Pro Medicus Limited (ASX: PME)
Another ASX healthcare share to consider buying with a long term view is Pro Medicus. It is a leading provider of a full range of radiology IT software and services to hospitals, imaging centres, and healthcare groups. It has been growing at a very strong rate over the last few years thanks to growing demand for its offering from a number of leading healthcare institutions. Given the quality of its products and its sizeable market opportunity, I believe Pro Medicus is capable of continuing this strong form for some time to come.
Ramsay Health Care Limited (ASX: RHC)
A final ASX healthcare share to buy is Ramsay Health Care. It is a leading private hospital operator with 480 facilities across 11 countries. This makes it one of the largest and most diverse private healthcare companies in the world. I believe this puts Ramsay in a great position to capture the growing demand for healthcare services globally once trading conditions return to normal following the pandemic.