2 ASX healthcare shares to buy for 2021 and beyond

CSL Limited (ASX:CSL) and this ASX healthcare share could be top options in 2021. Here's what you need to know…

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One area of the market which has been tipped to grow strongly over the 2020s is the healthcare sector.

This is due to favourable industry tailwinds, which are increasing demand for healthcare services.

If you're wanting exposure to this, then you might want to consider one or both of the shares listed below:

CSL Limited (ASX: CSL)

CSL is one of the world's largest biopharmaceutical companies. It has been an exceptionally strong performer over the last decade thanks to the strong demand for its leading therapies and vaccines.

This lucrative portfolio has been underpinned by the company's significant investment in research and development. Each year CSL spends in the region of 10% to 12% of its revenue on these activities. This led to CSL spending US$922 million on research and development in FY 2020.

Pleasingly, this trend isn't expected to end any time soon. At present, the company's portfolio looks set to get a boost in the coming years from a number of products which have the potential to generate billions in sales if they are successfully developed. This will be supported by the ever-increasing demand for its immunoglobulins products and flu vaccines.

One broker that is very positive on its future is UBS. It recently put a buy rating and $346.00 price target on its shares. This compares to the current CSL share price of $287.39.

Nanosonics Ltd (ASX: NAN)

Another healthcare share which has been tipped to have a bright future is Nanosonics. It is a leading infection prevention company and the name behind the best-in-class trophon EPR disinfection system for ultrasound probes.

The trophon product has been growing its market share consistently over the last few years, underpinning strong unit sales and even stronger consumables sales. The good news is that it still only has a reasonably modest share of its overall global market opportunity.

Management is also looking to bolster its growth with the release of new products targeting unmet needs in the near future. While there has been considerable delays in getting these products to market, they are coming and should increase Nanosonics' addressable market notably. Especially with the increasing importance of infection prevention following the pandemic.

UBS believes the company is well-placed to benefit from this tailwind and currently has a buy rating and $7.20 price target on its shares.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Nanosonics Limited. The Motley Fool Australia has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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