If you’re looking for growth shares to buy then I think the healthcare sector is a great place to start.
This is because thanks to new technologies and favourable tailwinds, demand for healthcare services looks set to grow strongly over the next decade.
Two ASX growth shares in the healthcare sector that I would buy are listed below. Here’s why I like them:
Nanosonics Ltd (ASX: NAN)
The first ASX healthcare share to consider buying is this infection prevention company. I think Nanosonics has a very bright future ahead of it thanks to its industry-leading trophon EPR disinfection system for ultrasound probes. This system reduces the risk of ultrasound-related cross-infection and is clinically proven to kill the infectious high-risk cancer-causing human papillomavirus.
And while I think this product alone could drive strong earnings growth over the next decade thanks to its sizeable market opportunity and growing recurring revenues, it will be joined by new products in the near future. Nanosonics is aiming to release a number of new products targeting other unmet needs. I believe these could give its earnings growth a major lift and drive the Nanosonics share price notably higher over the 2020s.
PolyNovo Ltd (ASX: PNV)
I think this exciting medical device company is another ASX healthcare share to buy. It is the company behind the increasingly popular NovoSorb technology. NovoSorb is a biodegradable material that was developed and CSIRO and can aid the repair of bone fractures and damaged cartilage, and in skin grafts.
I believe the NovoSorb Biodegradable Temporising Matrix (BTM) product in particular has enormous potential. It is a wound dressing intended to treat full-thickness wounds and burns and has a sizeable $1.5 billion market opportunity. As with Nanosonics, management isn’t resting on its laurels and is aiming to expand into other markets. It has its eyes on the hernia and breast treatment markets, which would add an additional $6 billion to its addressable market.
Where to invest $1,000 right now
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More reading
- Nanosonics and 1 more ASX healthcare share to buy and hold beyond 2025
- Why I think the Polynovo share price is a buy right now
- 3 exciting ASX growth shares to buy and hold until 2030
- ASX 200 drops 0.6%, Afterpay hits a new record
- PolyNovo share price higher on strong sales update
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nanosonics Limited and POLYNOVO FPO. The Motley Fool Australia has recommended 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.
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