3 exciting medical technology shares to watch

Nanosonics Ltd (ASX:NAN) shares are one of three in the medical technology industry I'm watching closely…

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Due to population growth, better treatments, and ageing populations, I think the healthcare sector is a great place to look for long-term investments.

This certainly is the case in the medical technology industry where companies are aiming to disrupt the status quo.

Three that I think have a lot of potential are listed below. Here's why I like them:

Nanosonics Ltd (ASX: NAN)

I think that this infection control specialist could have a very bright future ahead of it. The company's trophon EPR product has been growing its installed base in the U.S. at a strong rate over the last few years thanks to being regarded as best in class and environmentally friendly. While this product alone has significant potential, the company plans to release complementary products in the near future that will both boost and diversify its revenue.

Pro Medicus Limited (ASX: PME)

Pro Medicus is the healthcare technology company behind the increasingly popular Visage 7 software. This impressive piece of software provides radiologists and referring physicians with fast server-side rendered images streamed via an intelligent thin-client viewer. This allows its users to have a customised protocol-driven workflow to natively view multi-dimensional imagery and a patient's complete imaging history. A number of highly respected healthcare institutions in the U.S. have signed multi-year agreements for the software in the last 12 months, which I believe is a testament to the quality of the product.

Volpara Health Technologies Ltd (ASX: VHT)

Like Nanosonics, Volpara Health Technologies has been growing its share of the U.S. market at a solid rate. Recently the breast imaging analytics and analysis software specialist advised that its market share had grown to 3.7% of all women screened in the United States. Pleasingly, due to the quality and popularity of its product management expects to grow its market share to a massive 9% by the end of the current financial year. If it achieves this then FY 2019 is likely to be another year of bumper annual recurring revenue growth. In FY 2018 annual recurring revenues rose by a whopping 223%, albeit from a relatively low base.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited, PRO Medicus Ltd., and 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.

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