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.
Two ASX healthcare shares that I feel could be long-term market beaters are listed below. Here's why I like them:
CSL Limited (ASX: CSL)
The first ASX healthcare share to consider buying is CSL. It is one of the world's leading biotherapeutics companies. I feel it would be a great long term option for investors due to the quality of its CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies and Seqirus is the second largest influenza vaccines business.
I believe both businesses are well-placed for long-term growth due to their leading therapies and their lucrative research and development pipelines. This pipeline contains a number of highly promising products that have the potential to generate significant revenues in the future. This includes clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion eventually.
ResMed Inc. (ASX: RMD)
A final healthcare share to consider buying is ResMed. It has been growing at a very strong rate over the last decade and is now one of the world's leading sleep treatment companies. Pleasingly, it has started the new decade just as strongly as it finished the last. It was a strong performer in FY 2020, delivering a 15% constant currency increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.
The good news is that I believe it is well-placed to continue this strong form for some time to come. This is thanks to its world-class products and the massive number of undiagnosed sleep apnoea sufferers globally. The company also has a rapidly growth digital health ecosystem, which reached over 12 million cloud connectable medical devices this year. This provides ResMed with strong recurring revenues and an invaluable amount of high quality data.
