ASX 200 healthcare shares led the market sectors last week with a 3.28% increase over the five trading days.
The S&P/ASX 200 Index (ASX: XJO) had a great start to the new financial year, rising 1.04% over the week to finish at 8,603 points.
Healthcare was partly propelled by a 9.73% surge for the unstoppable sector darling Pro Medicus Ltd (ASX: PME) shares.
For the first time ever, the Pro Medicus share price cracked the $300 mark last week, closing at $307.89 per share on Friday.
The stock set a new record at $316.47 on Thursday after the company announced two major contracts in the US.
Pro Medicus is now one of only two ASX 200 healthcare shares with a share price above $300.
The other is Cochlear Ltd (ASX: COH) shares.
Image source: Getty Images
What does Pro Medicus do?
As my colleague James explains, Pro Medicus has become a key player in the digitisation of global healthcare.
The company provides cloud-based radiology software to major hospital networks across the US, Europe, and Australia.
With high margins, zero debt, and a sticky client base, Pro Medicus continues to attract new contracts and report strong earnings growth.
Runaway momentum on Pro Medicus shares
Another colleague, Bernd, points out that we all could have invested in Pro Medicus shares for about $42 apiece just three years ago.
Let that painful truth sink in for a moment.
That is 625% share price growth.
Here is a visual aid.
In FY25, the Pro Medicus share price rose 99% to close at $285 per share on 30 June.
Pro Medicus was the second-best performer of the ASX 200 healthcare sector in FY25.
It was beaten by Sigma Healthcare Ltd (ASX: SIG) shares, which rose by 135% after the blockbuster Chemist Warehouse merger.
The S&P/ASX 200 Health Care Index (ASX: XHJ) declined in FY25, losing 6% in value.
Where to from here for Pro Medicus shares?
Morgan Stanley and Bell Potter think Pro Medicus shares don't have much more room to grow.
Morgan Stanley has an overweight rating and a 12-month price target of $310 on Pro Medicus shares.
Last week, Bell Potter downgraded Pro Medicus from a buy to a hold rating with an improved price target of $320, up from $280.
What else happened with ASX 200 healthcare shares last week?
Among the other ASX 200 healthcare sector heavyweights, CSL Ltd (ASX: CSL) shares lifted 3.59% to close at $242.76 on Friday.
Sigma shares gained 2.03% to close at $3.01 apiece.
The share price of private healthcare provider and hospital owner Ramsay Health Care Ltd (ASX: RHC) ripped 8.8% to $39.30.
The Cochlear Ltd (ASX: COH) share price rose 1.88% to $300.99.
Shares in pathology provider Sonic Healthcare Ltd (ASX: SHL) lifted 1.72% to close at $27.16 on Friday.
Resmed CDI (ASX: RMD) shares lifted 1.16% to $39.40 per share.
Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH) shares lifted 0.33% to $33.82 apiece.
Among the small-cap healthcare shares, Clarity Pharmaceuticals Ltd (ASX: CU6) rose 16.67% to close at $2.94 on Friday.
ASX 200 market sector snapshot
Here's how the 11 market sectors stacked up last week, according to CommSec data.
Over the five trading days:
| S&P/ASX 200 market sector | Change last week |
| Healthcare (ASX: XHJ) | 3.28% |
| A-REIT (ASX: XPJ) | 2.95% |
| Materials (ASX: XMJ) | 2.91% |
| Consumer Discretionary (ASX: XDJ) | 1.94% |
| Energy (ASX: XEJ) | 1.34% |
| Consumer Staples (ASX: XSJ) | 1.25% |
| Utilities (ASX: XUJ) | 1.11% |
| Industrials (ASX: XNJ) | 0.44% |
| Communication (ASX: XTJ) | (0.12%) |
| Information Technology (ASX: XIJ) | (0.16%) |
| Financials (ASX: XFJ) | (0.74%) |
