ASX healthcare shares are often touted here on the Australian share market. We are home to some of the most innovative players in the healthcare domain.
But there's also a handful of companies that are growing their business over in the enormous US market.
Telix Pharmaceuticals Ltd (ASX: TLX) and Botanix Pharmaceuticals Ltd (ASX: BOT) are capturing attention with their market achievements, and fund managers have noted their performance.
At the time of writing, the Botanix Pharmaceuticals share price is trading at 39 cents per share, while Telix shares are swapping hands at $19.14 apiece.
Here's a look at what the experts are saying.
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ASX healthcare shares in favour
The first ASX healthcare share in focus is Telix. It has soared more than 91% this year to date, outpacing all major benchmarks.
Its flagship product, Illuccix, has approvals from the US Federal Drug Administration (FDA), the Therapeutic Goods Association (TGA) here in Australia, and Health Canada.
These approvals have driven substantial revenue growth. The ASX healthcare share now projects FY24 revenue between US$490 million and US$510 million, up from earlier guidance.
Monash Investors Small Companies Fund highlighted Telix's performance in its June update. Telix – along with Botanix – was one of the fund's largest contributors for the quarter.
The fund booked a 44% gain from the position during the three months.
Telix's cancer imaging drug sales continue growing at extraordinary rates and are now over $500m after two years. The main news this quarter was positive data from the clinical trial of its prostate cancer therapy.
Bell Potter analysts are also bullish on Telix. The broker recently reaffirmed its buy rating and lifted the price target to $22.60, according to my colleague James.
It highlighted the company's strong revenue growth and potential for further upside with upcoming regulatory approvals for its Zircaix label.
"We believe the likely approval for Zircaix in early CY25 will propel the stock towards our revised target price," Bell Potter noted.
Botanix rallies in 2024
Botanix Pharmaceuticals shares have also spiked in 2024 and are up more than 101% since January.
The ASX healthcare share recently made headlines with the FDA approval of its Sofdra product.
This medicine treats primary axillary hyperhidrosis, a condition characterised by excessive underarm sweating. It is the first new chemical entity approved by the FDA for this condition.
According to the company, Sofdra's potential market is substantial, with approximately 10 million people in the United States affected by this condition.
The FDA approval facilitated a successful $70 million capital raising, and Botanix will use the funds to support its US launch of Sofdra.
Lennox Capital Partners recently added Botanix to its portfolio following the FDA approval. The fund praised Botanix's strategic positioning in its June letter.
During the month, the fund added Botanix Pharmaceuticals following US Food and Drug Administration (FDA) approval of its sweat prevention product Sofdra. The company has a highly capable board and management team with a strong track record of execution.
We are attracted to the US market opportunity which offers limited competition. Combined with the company's dermatologist-centric strategy, we anticipate rapid product adoption from those suffering from hyperhidrosis.
Monash Investors also noted the ASX healthcare share's significant progress in its June update after it saw a 53% return during the quarter.
In it, the broker said Sofdra already had "a large market" in Japan and was distributed by an unrelated company.
Botanix is also rated a strong buy from consensus estimates, according to CommSec.
Foolish takeaway
Telix Pharmaceuticals and Botanix Pharmaceuticals are two ASX healthcare shares that could make significant impacts in the US market.
Their ownership in key funds is a highlight and shows conviction from those with "skin in the game". As always, conduct your own due diligence before making investment decisions.
