With populations around the world getting older and chronic disease burden increasing, demand for healthcare services continues to increase.
I expect this trend to continue for several decades, which I feel makes the healthcare sector a great place to look for investments.
Three healthcare shares that I feel could be worth watching closely in 2020 are listed below. Here's why I like them:
Alcidion Group Ltd (ASX: ALC)
Alcidion is a growing informatics solutions company. It provides software that aims to improve the efficacy and cost of delivering services to patients and reduce hospital-acquired complications. Due to the quality of its portfolio and the growing trend for healthcare organisations to shift to a paperless environment, I believe it is well-placed for strong growth over the coming years.
Nanosonics Ltd (ASX: NAN)
Nanosonics is the infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. I think this product alone has the potential to underpin solid earnings growth over the coming years. This is thanks to its massive global market opportunity, recurring revenues, and favourable guideline changes. However, Nanosonics will not be a one-trick pony for much longer. It has a number of new products in its pipeline targeting unmet needs. The first is expected to launch early in FY 2021.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Paradigm is a biopharmaceutical company which is repurposing Pentosan Polysulfate Sodium (PPS) to treat osteoarthritis. The trial results of the drug, ZILOSUL, have been very promising, which is a big positive given its market opportunity. Management notes that there are over 31 million osteoarthritis sufferers in the United States alone. Another positive is its cash balance of ~$75 million. I believe this is more than sufficient to see Paradigm through to a commercial launch of ZILOSUL if it gets to that stage.
