3 exciting small cap ASX healthcare shares to watch

Volpara Health Technologies Ltd (ASX:VHT) shares are one of three at the small end of the healthcare sector to watch…

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I think the healthcare sector is a great place to look for buy and hold options.

This is because in this sector you'll find a number of companies that have the potential to grow significantly in the future thanks to favourable tailwinds and new technologies.

Three small cap ASX healthcare shares I am watching closely 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. It has been winning a number of contracts over the last couple of years in the UK with the NHS and privately in Australia.

Telix Pharmaceuticals Ltd (ASX: TLX)

Another small cap ASX healthcare share to watch is Telix Pharmaceuticals. It is a clinical-stage biopharmaceutical company developing an advanced pipeline of molecularly-targeted radiation (MTR) products. I think MTR is an exciting treatment approach. It chemically links radioactive isotopes to target molecules specific to cancer cells. One key therapy in its portfolio is TLX591, which is also known as Illumet. It is a metastatic prostate cancer radionuclide therapy. Management estimates that it has a $2 billion market opportunity in late-stage disease alone.

Volpara Health Technologies Ltd (ASX: VHT)

A final small cap ASX healthcare share to look at is Volpara. It is a healthcare technology company that provides software which leverages artificial intelligence imaging algorithms to help with the early detection of breast cancer. It has been a very strong performer in recent years and has consistently grown its market share in the United States at a strong rate. I expect more of the same in the coming years and for recent acquisitions to start supporting the growth of its average revenue per user metric. Combined, this should underpin strong revenue growth over the next decade.

James Mickleboro owns shares of TELIXPHARM DEF SET. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Alcidion Group Ltd and VOLPARA FPO NZ. The Motley Fool Australia has recommended Alcidion Group Ltd and VOLPARA FPO NZ. 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.

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