If your portfolio hasn't been performing as strongly as you would like this year, then now could be a good time to bring it to life with one of the top healthcare shares listed below.
I believe both have the potential to provide market-beating returns over the next few years, potentially making them great long term options today. Here's why:
CSL Limited (ASX: CSL)
My favourite ASX healthcare share continues to be CSL. I think the biotherapeutics giant could be a fantastic long term option due to the quality and strength of its CSL Behring and Seqirus businesses. Its CSL Behring business is the global leader in plasma therapies, whereas its growing Seqirus business is the second largest influenza vaccines company globally.
I think both businesses have very positive outlooks thanks to their leading therapies and CSL's heavy investment in research and development. In respect to the latter, this year the company will invest almost US$1 billion in its research and development efforts. I expect this to cement its leadership position and underpin strong long term earnings growth.
Nanosonics Ltd (ASX: NAN)
Nanosonics is the infection control specialist behind the popular trophon EPR disinfection system for ultrasound probes. This system has been growing its installed base at a rapid rate over the last few years and reached 22,500 units globally earlier this year. This installed base growth is positive for two reasons. This is because as its installed base grows, so too do the sales of the consumables that it requires.
For example, during the first half, consumables and service sales were up 40% on the prior corresponding period to $34.1 million. These recurring revenues represented 70% of its total revenue for the half. Pleasingly, its current installed base is still only a fraction of the global market opportunity estimated to be 120,000 units. Due to the quality of the product and favourable regulatory recommendations, I believe Nanosonics is well-placed to grow its market share materially over the next decade. This should be supported by the upcoming launch of several new products targeting unmet needs.
