There are very few areas of the market that I believe have such strong long-term growth prospects as the healthcare sector. This is largely down to the positive outlook for population growth and ageing populations.
The good news is that there are a great number of options to choose from in the sector. Are these three the ones to buy?
CSL Limited (ASX: CSL)
CSL is a global biotech star and arguably one of the highest quality companies on the Australian share market. Its shares have been on fire over the last 12 months thanks to a strong half-year result and positive guidance. While I would say its shares are close to being fully valued now, I still think it is worth buying its shares if you are prepared to hold onto them for the long-term. This is because of its pipeline of products and positive tailwinds for its core business.
Medical Developments International Ltd (ASX: MVP)
Medical Developments International is the growing healthcare company behind the popular Penthrox pain management product. The company has been busy successfully expanding the presence of Penthrox, also known as the green whistle, globally over the last couple of years. I expect this to underpin strong sales growth in the future, just as long as its recent road block in the U.S. market doesn't derails things. Last month the U.S. Food and Drug Administration suspended the clinical program for Penthrox in the USA out of the blue. It will outline its issues and concerns in a letter to the company within the next couple of months. I would suggest investors wait to hear what these concerns are before investing.
ResMed Inc. (ASX: RMD)
Last week this sleep treatment company released its fourth quarter results and revealed a 13% increase in revenue to US$2.3 billion. ResMed's bottom line growth was even more impressive, with income from operations growing 27% to US$542 million. Thanks to the positive outlook for the sleep treatment industry and its focus on the fast-growing cloud-connected medical device market, I feel confident there will be more of the same in FY 2019 and beyond.
