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These small cap ASX healthcare shares could be destined for big things

One area of the share market which I believe is home to a number of promising small caps is the healthcare sector.

Thanks to positive tailwinds and their impressive technology and products, I believe there are companies at this side of the market that are well-placed to grow at a strong rate over the next decade.

Two which I rate highly are listed below. Here’s why they could be worth adding to your watchlist:

Telix Pharmaceuticals Ltd (ASX: TLX)

The first small cap healthcare share to look at is Telix Pharmaceuticals. It is a clinical-stage biopharmaceutical company developing an advanced pipeline of molecularly-targeted radiation (MTR) products. MTR is an approach which chemically links radioactive isotopes to targeting molecules specific to cancer cells.

Telix has an advanced pipeline of therapies which address clear unmet medical needs in high-value oncology segments. This includes areas such as renal cancer, prostate cancer, and glioblastoma. One of the key products in its pipeline is TLX591. This is a metastatic prostate cancer radionuclide therapy, which management estimates provides Telix with a $2 billion sales opportunity in late-stage disease alone. 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)

Another small cap healthcare share to look at is Volpara. It is a medical technology company which has been growing at an incredible pace over the last few years. This strong form continued in FY 2020 when Volpara delivered a 153% year on year increase in revenue.

The key driver of this growth was the increasing demand for its software which leverages artificial intelligence imaging algorithms to assist with the early detection of breast cancer. At the end of the financial year, the company’s installed software base covered over 27% of US women screened for breast cancer. I’m confident that its growing footprint and recent acquisitions will lead to similarly strong growth in FY 2021.

These 3 stocks could be the next big movers in 2020

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James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of VOLPARA FPO NZ. The Motley Fool Australia has recommended VOLPARA FPO NZ. 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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