3 small cap healthcare shares on my watchlist

CogState Limited (ASX:CGS) shares are one of three at the small end of the healthcare sector I have on my watchlist…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Thanks to technological advancements and the expected growth in demand for healthcare services over the next couple of decades, I think the healthcare sector is a great place to look for buy and hold investments.

This is especially the case at the small end of the market where a number of companies are aiming to disrupt the status quo. While these shares may not necessarily be ready for investment, I think they are more than deserving of a spot on your watchlist.

Here's why I like them:

CogState Limited (ASX: CGS)

CogState is an exciting small-cap share which provides cognitive function testing services that help large pharmaceutical companies measure the effectiveness of potential new treatments for common cognitive ailments. The company has a decent balance sheet with no debt, a track record of growth, and is close to becoming consistently profitable.

Cynata Therapeutics Ltd (ASX: CYP)

Cynata is a stem cell and regenerative medicine company which is behind the Cymerus technology and CYP-001 mesenchymal stem cell product. Its impressive Cymerus technology is able to produce an unlimited number of high quality stem cells at a low cost. These stem cells can then be used to treat numerous diseases including Graft versus Host Disease and cardiovascular disease. CYP-001 was recently granted Orphan Drug Designation by the U.S. FDA and delivered positive trial data from its Phase 1 clinical trial.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a medical technology company which specialises in breast imaging analytics and analysis software. It has been growing its recurring revenues at an explosive rate thanks to the rapid adoption of the technology in the United States. At the last count, its software handled 3.2% of all women screened for breast cancer in the country. Management appears confident that the growing demand will lead to even more market share gains in FY 2019 and is targeting a share of 9%.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Healthcare Shares

Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.
Healthcare Shares

Guess which ASX healthcare stock is jumping 12% on Wednesday

This shares is rocketing this morning. But why? Let's find out.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Healthcare Shares

Here is the dividend forecast to 2029 for CSL shares

Can this blue-chip giant provide healthy dividend income?

Read more »

a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.
Healthcare Shares

The best ASX 200 healthcare stocks to buy in 2025

These shares could give your portfolio a healthy boost next year according to Bell Potter.

Read more »

In the lab at work, the mature adult woman and young adult man smile as they review the results of their successful experimentation.
Healthcare Shares

ASX 300 healthcare stock lifts off on promising new results

Up 28% in a year, the ASX healthcare stock is leaping higher on Thursday.

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

If you'd invested $5,000 in this ASX 300 healthcare stock a year ago, you'd now have $30,000!

This stock has made millions for investors over just a few months.

Read more »

Male doctor in a lab coat working at laptop looking serious.
Healthcare Shares

Has the Pro Medicus share price risen too high too quickly?

Pro Medicus shares have rocketed 173% since this time last year.

Read more »

A senior pharmacist talks to a customer at the counter in a shop
Mergers & Acquisitions

Own Sigma shares? Here's the latest on the Chemist Warehouse merger

One year ago today, the two companies announced plans to merge. We could now be just a few months away…

Read more »

Man with a sleep apnoea mask on whilst sleeping.
Healthcare Shares

'Huge opportunity' ahead for this ASX 200 healthcare stock

The ASX 200 healthcare stock is facing a large untapped market for its lead products.

Read more »