Due to populations around the world getting older and chronic disease burden increasing, demand for healthcare services continues to rise.
I believe this trend will continue for several decades, which could make the healthcare sector a great place to look for investments.
Three healthcare shares that I feel could be market beaters in 2020 are listed below. Here's why I like them:
Nanosonics Ltd (ASX: NAN)
Nanosonics is the infection control specialist behind the trophon EPR product. This industry-leading product provides users with a safe, versatile and simple way to prevent ultrasound probe cross-infection. Its installed base grew 18% in FY 2019 to 20,930 units. This led to a sizeable jump in revenue from unit sales and the consumables it requires. The good news is that its global addressable market is estimated to be 120,000 units. This gives Nanosonics a long runway for growth. Which looks set be boosted greatly in the near term with the imminent release of new products targeting unmet needs.
Paradigm Biopharmaceuticals Ltd (ASX: PAR)
Paradigm is a biopharmaceutical company with a lot of potential. It is currently focused on 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 estimates that the United States market opportunity could be as large as US$27.9 billion per annum. Another highlight is that it recently raised significant funds through a capital raising. This left it with a cash balance of ~$75 million at the last count. I believe this is more than sufficient to see Paradigm through to a commercial launch of ZILOSUL if it gets to that stage.
ResMed Inc. (ASX: RMD)
A final healthcare share to consider buying is ResMed. I think its shares could provide investors with market-beating returns over the next decade thanks to its industry-leading sleep treatment products and the proliferation of sleep apnoea. The company estimates that there are a whopping ~1 billion people impacted by sleep apnoea globally.