Among the best in the world is the Australian healthcare system. It offers inexpensive, secure, and high-quality medical care. The majority of these healthcare services are free or extremely inexpensive for all Australians, thanks to Medicare and the public hospital system.
A reputable Australian healthcare system offers a range of students and medical professionals the chance to further their education, gain experience, and develop their careers. Technological developments in medical instruments and equipment give healthcare exports a big boost. A few domains with robust capabilities are medical tourism and telehealth care opportunities.
The Australian medical equipment industry has consistently provided good prospects for U.S. exporters. It is the 9th largest market for US exporters of medical products, as per the International Trade Administration.
For American exporters, the Australian medical equipment market has always offered promising opportunities. The US exporters of medical products rank it as their ninth-largest market, according to the International Trade Administration.
Due to the COVID-19 pandemic, Australia's health care system has undergone significant changes. To provide telehealth services, the government added several temporary Medicare-subsidized items, and the ecosystem has seen a notable increase in the use of digital health technologies. The growing adoption of digitalized health care has made it possible for market participants to recognize the benefits and proof of concept of digital health technologies, as there has been a notable improvement in the technologies' reception by consumers, businesses, and institutions.
Source: International Trade Administration
Let’s take a look at some of the highly recommended ASX healthcare stocks for 2024 in different sizes based on their market capitalization. These are as follows:
Note: The market cap and the share price of the selected ASX companies below are mentioned as of 23 January 2024.
Pro Medicus Limited (ASX: PME)
Market cap: $10.54 billion
CMP: $100.865
PME has significantly expanded the potential scale of its operations and has secured substantial business for a good portion of the next decade through several secured contracts with leading and highly reputed institutions. The planning for rollout of Visage’s proven cloud-based implementation process, which has already commenced and is targeted to go live within the first half of 2024, acts as a considerable value catalyst for expansion in the short term. The existing state of the company’s financials also remains encouraging, with huge growth margins across revenues, profits, and cash flows, leading to a significant rise in the cash balances of the company and ensuring the capability to fund future growth and expansion activities.
TELIX Pharmaceuticals Limited (ASX: TLX)
Market cap: $3.60 billion
CMP: $11.13
The company is working extremely hard to introduce this first-of-its-kind, noninvasive, 89-zirconium-labelled monoclonal antibody (mAb)-based imaging agent to the market. Not only does Illuccix continue to demonstrate TLX's strong commercial performance and generate substantial revenue, but Telix Pharmaceuticals Limited also maintains a robust pipeline. It is advancing with multiple late-stage therapeutic programmes, getting ready to launch two more imaging agents, and keeping supply and manufacturing vertically integrated. Furthermore, if the BLA gets approved by the FDA for its TLX250CDx, then it will be the first targeted radiopharmaceutical imaging agent for kidney cancer to be commercially available to patients in the U.S.
Neuren Pharmaceuticals Limited (ASX: NEU)
Market cap: $2.94 billion
CMP: $23.11
The company aspires to make a difference to patients and families impacted by neurodevelopmental disabilities. The recent FDA approval and launch of DAYBUE transformed Neuren’s financial outlook, putting them in a strong position. Neuren is eligible for payments of up to US$350 million on achievement of four thresholds; receive quarterly royalties on net sales of trofinetide in North America, plus US$33 million awarded to Acadia by the Food Drug Administration upon approval of the NDA. Acadia has exclusive rights to develop and commercialise trofinetide, which is fully funded by Acadia in the United States, Mexico, and Canada.
Ansell Limited (ASX: ANN)
Market cap: $3.01 billion
CMP: $24.04
Ansell's focus on investing for long-term growth and value creation remains unchanged. The construction of the company's Kovai Surgical facility in India continues and is on track for manufacturing commencement in FY24. The company's focus on R&D and product innovation continues, with a renewed emphasis on innovation in the Exam/SU business. The supply chain disruptions in the business have been significant over the past three years, but the availability of critical resources, including the new manufacturing capability from the recent buyout of Careplus, a joint venture partner, will be key enablers to innovation in Exam/SU. The surgical facility in India continues, and it is on track for manufacturing commencement in FY24.
Clarity Pharmaceuticals Limited (ASX: CU6)
Market cap: $621.51 million
CMP: $2.37
Clarity saw notable progress in the development of three of its core products: SAR bisPSMA, SAR-Bombesin, and SARTATE, as it reached significant milestones in clinical trials. These milestones are expected to allow the company to achieve its goal of developing the next generation of radiopharmaceutical products. The company reported a 77.9% growth in its income and revenues, from $6.5 million in 2022 to $11.6 million in 2023.
Reference: *All Data has been sourced from Company announcements and Refinitiv, Thomson Reuters
Frequently Asked Questions (F.A.Q)
What are the top 5 ASX healthcare companies?
• Pro Medicus Limited (ASX: PME)
• TELIX Pharmaceuticals Limited (ASX: TLX)
• Neuren Pharmaceuticals Limited (ASX: NEU)
• Ansell Limited (ASX: ANN)
• Summerset Group Holdings Limited (ASX: SNZ)
What are the growth capabilities of Pro Medicus Limited?
With the number of new contracts added during FY2023 and the following period, the company has observed further growth in maintaining a strong project pipeline. PME's rapid expansion into academic medical centers in North America is facilitated by the recently secured contracts, all of which are notably located in the United States. Because customers are only expected to pay for what they use, regardless of size, the company's transaction-based model increases marketability and adds utility and value for both the clients and the business.
In what way is the health service in Australia financed?
Australia's government, along with the governments of the states and territories, as well as private health insurers and individuals, provide funding for the health system.
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