2 ASX healthcare shares I wish I'd owned in 2019

Hindsight is a marvellous thing. Here are 2 ASX healthcare shares I wish I'd owned last year, and what might be in store for them in 2020.

| 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

It's easy to look back on ASX shares that you had wish you owned – hindsight is a marvellous thing. However, if we try to learn from it and understand what made certain companies perform better than others, maybe, just maybe, we won't miss out on similar opportunities that are present on the ASX right now.

Below are 2 ASX healthcare companies I missed out on in 2019. Unfortunately, I left them sitting on my watch list, where they still remain today.

Medical Developments International Ltd (ASX: MVP)

Anyone in Australia who has had the misfortune of requiring an ambulance or been to the emergency room would probably have heard of the 'green whistle'. The green whistle administers the pain-relieving drug 'Penthrox', which is used by ambulances, the defence force, paramedics, life savers and medical practitioners. It is produced by Medical Developments and is superior to alternatives due to its fast acting, self-administered and non-addictive pain relief.

In 2019, Penthrox sales grew in Australia by 32%, and in Europe by 401% (with most major countries such as Germany, Italy and Spain still to launch). The company also boasts a pathway for potential approval in the huge US market, so it's no surprise the Medical Development's share price more than doubled in 2019, opening last year at $4.39 to hit a high of $9.24. The share price is currently sitting near its 52-week high, trading for $9.02 at the time of writing.

Nanosonics Ltd (ASX: NAN)

Another medical company with envious results throughout 2019 is the ultrasound disinfection device manufacturer Nanosonics. The Nanosonics share price took a huge leap in 2019, opening the year at just $2.80, hitting a recent high of $7.60 in November, and currently trades at $6.36.

This impressive performance followed on from a less impressive year in 2018, with the stock being one of the most shorted shares on the ASX – a position I'm sure short-sellers are regretting due to the subsequent share price gains.

Short-seller interest rose as Nanosonics traded on eye watering multiples, which were believed to be unjustified. However, thanks to the rapid adoption of its Trophon and second generation Trophon2 technology that provides an automated high-level disinfection solution for ultrasound probes, the company saw FY19 revenues rise 39% and profit before tax up 201% on the prior corresponding period.

With the trophon2 gaining regulatory approval in Japan and new agreements in Europe, it appears Nanosonics still has significant growth potential. In fact, it stated that it currently only has a global market penetration of 17% with huge opportunities still present in Europe, the Middle East and Asia Pacific, as shown by the below graphic.

Chart source: Nanosonics 2019 AGM presentation

Foolish takeaway

Both Medical Developments and Nanosonics develop and offer a unique product to a huge addressable market. Both companies have expanded globally and are continuing to see huge growth, which could also make them both shares to outperform in 2020.

Motley Fool contributor Michael Tonon has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Medical Developments International Limited and Nanosonics Limited. 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

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Healthcare Shares

Broker says this ASX 200 biotech stock is a top buy

Let's see what Bell Potter is saying about this biotech.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why CSL shares are a buy today despite the looming Trump tariffs

A leading expert believes CSL shares are still trading for a bargain today. Here's why.

Read more »

A businesswoman pulls her glasses down in shock to look at the bad news on her computer.
Healthcare Shares

Why did the Telix share price just crash 16%?

Investors are sending the Telix share price plunging today. But why?

Read more »

Broker analysing the share price.
Healthcare Shares

Expert: 2 ASX healthcare stocks to avoid before reporting season

Not all healthcare stocks are created equal.

Read more »

A group of people in a corporate setting do a collective high five.
Healthcare Shares

Should I buy Pro Medicus or CSL shares ahead of earnings season?

The ASX healthcare sector may be currently undervalued.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Why Mesoblast shares can keep storming higher

More big returns could be on the way for buyers of this high risk stock according to Bell Potter.

Read more »

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

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »

couple having a happy discussion with a banker
Healthcare Shares

Expert: 4 ASX healthcare stocks to buy ahead of reporting season

Could these ASX healthcare stocks be good additions to your portfolio?

Read more »