Wanting some exposure to the healthcare sector in 2025?
If you are, then it could be worth looking at the ASX 200 healthcare stocks that Bell Potter has named as its top picks for the year ahead. They are as follows:
Clarity Pharmaceuticals Ltd (ASX: CU6)
This pharmaceuticals company, which joins the ASX 200 index at this month's rebalance, has been named as one to buy in 2025 by Bell Potter.
The broker is confident ahead of a big year for the company. This includes the release of the final data from the SECuRE trial. It explains:
Clarity Pharmaceuticals has continued to produce high quality interim data readouts from its numerous clinical trials during 2024. In 2025 we anticipate a flood of new data led by headline readouts from the pivotal study in prostate cancer imaging (CLARIFY) and perhaps more importantly, final data from SECuRE being the therapy trial also in prostate cancer. Earlier data from imaging studies indicates 64Cu SAR-bisPSMA is able to detect cancerous lesions in lymph nodes at a far earlier stage than the standard of care. Similarly, PSA50 data from the SECuRE trial is highly anticipated and is expected to be highly supportive of further development of this drug candidate.
Bell Potter has a speculative buy rating and $10.00 price target on its shares.
CSL Ltd (ASX: CSL)
Another ASX 200 healthcare share that could be a buy in 2025 is biotechnology giant CSL.
The broker believes that CSL is well-placed to deliver on its medium term earnings growth guidance thanks to the key CSL Behring business. In light of this, it feels that its shares are undervalued at current levels. It said:
We expect CSL will achieve guidance of "annual double-digit earnings growth" over the mid-term driven largely by the legacy plasma business, Behring, particularly its immunoglobulin sales. While CSL's Seqirus and Vifor business units do face near-term headwinds (reduced flu market demand and generic iron competition), these two units combined only contribute less than a third of total earnings. CSL continues to be a high quality, global operator with a multi-year gross margin recovery well underway to drive earnings expansion. The stock is currently trading at a 12m forward PE 27% and 19% below 5- and 10-year averages, respectively.
Bell Potter has a buy rating and $345.00 price target CSL's shares.
Polynovo Ltd (ASX: PNV)
A final ASX 200 healthcare share that Bell Potter has named as a best buy for 2025 is medical device company Polynovo.
The broker highlights that it expects the company to achieve its first full year of positive cash flow next year. It said:
PolyNovo is a leader in the market for dermal replacement wound care products in the United States. Novosorb has gained excellent traction in the US hospital sector over recent years which has seen dozens of surgeons commence using the product for complex wound repair. FY25 revenues are likely to grow at >30% off a revenue base of $110m and the company is also expected to generate earnings and record its first full year of cash flow positive operations. In the clinic, PNV is expected to report headline data from the clinical trial in full thickness burns and this will likely lead to an upgrade in the registration from a 510K to a pre market approval (PMA) and improved pricing.
Bell Potter has a buy rating and $3.00 price target on its shares.
