Looking for exposure to the healthcare sector in FY 2025? If you are, then check out the three ASX shares listed below.
They have just been tipped as Bell Potter's top healthcare stocks to buy now:
Aroa Biosurgery Ltd (ASX: ARX)
Aroa Biosurgery describes itself as a soft-tissue regeneration company committed to unlocking regenerative healing for everybody.
Bell Potter is feeling very positive about the company's outlook and has put a buy rating and 90 cents price target on its shares. It is expecting the ASX healthcare stock's strong top line growth to continue in FY 2025 and FY 2026. It said:
In FY24 revenues grew by 75% to NZ$23.3m and we expect a similar growth rate in FY25 and FY26 driven by an expanded user base and data from the Myriad Augmented Soft Tissue Regeneration Registry (MASTRR). ARX also expects to report data from its 120 patient randomised clinical trial in diabetic foot ulcer patients. The trial is investigating the healing properties of the Symphony product. Earlier studies in a very difficult patient population with advanced DFU's provided highly supportive data on the rate of wound healing.
Cyclopharm Ltd (ASX: CYC)
Bell Potter is also bullish on this global radiopharmaceutical company which has a focus on pulmonary care. Especially given its strong balance sheet following a recent capital raising.
The broker currently has a buy rating and $3.40 price target on the ASX healthcare stock. It said:
Cyclopharm recently completed a $24m capital raise with funds to provide working capital to support the expanding revenue base in the US. Since receiving FDA approval for Technegas in the US in September 2023, CYC has notched up numerous firsts including contract signings and first revenues earned. […] The company estimates the US market for Technegas at US$180m annually inclusive of US$90m being the initial market for diagnosis of pulmonary embolism (PE) which it believes it can win within 5 to 7 years from launch. The second stage of the market also relates to PE where the company believes it can win market share in those patients currently diagnosed via CT.
Telix Pharmaceuticals Ltd (ASX: TLX)
Finally, another radiopharmaceutical company that could be a buy according to Bell Potter is Telix. It has a buy rating and $19.00 price target on its shares.
Bell Potter likes the company due to its revenue-generating Illuccix product, as well as its promising product pipeline. The broker explains:
The fundamental drivers of value remain firmly in place, including: revenues from the sale of Illuccix continue to grow; recently completed submission of the Biological license application for Zircaix in early June; and additional catalysts including submission of the New Drug Application for Pixclara, commencement of enrolment in the prostate cancer therapy and initial data from the STARLITE trial.
