Looking to add high-quality ASX healthcare shares to your portfolio? The Australian share market is home to some of the most disruptive, innovative health companies on the planet. In this article, we will explore whether three standout ASX healthcare shares— ResMed Inc. (ASX: RMD), OncoSil Medical Ltd. (ASX: OSL), and CSL Ltd. (ASX: CSL)—are the best investments money can buy.
ResMed Inc. (ASX: RMD)
Why ResMed is a Top ASX Healthcare Share
ResMed is a leading player in the treatment of sleep disorders, particularly obstructive sleep apnoea (OSA). With the rising prevalence of OSA, ResMed is well-positioned for significant growth. Analysts at Bell Potter highlight the vast potential in this market, noting that over a billion people globally suffer from OSA, many of whom remain undiagnosed.
This underpenetrated presents a significant growth opportunity for ResMed. Bell Potter has given ResMed a buy rating with a $36.00 price target, citing the company's competitive edge, bolstered by the ongoing recall of competitor Philips' respiratory devices. Macquarie analysts are similarly bullish, valuing ResMed at $34.85, suggesting an upside potential of 12–15%.
ECP Asset Management also favours ResMed. Portfolio manager Sam Byrnes described ResMed as undervalued, despite market concerns about the impact of weight loss drugs on the future of sleep apnoea treatments. Even with the market's strength in 2024, ECP finds ResMed's valuation very appealing.
OncoSil Medical Ltd. (ASX: OSL)
Why OncoSil is a Compelling ASX Healthcare Share
OncoSil Medical Ltd. specialises in a medical device for locally advanced unresectable pancreatic cancer. The company's product, the OncoSil device, has shown promising results in improving the quality of life and outcomes for patients with pancreatic cancer tumours.
Recent financial updates indicate positive performance and strong future prospects. As of now, OncoSil Medical is trading at AUD 0.010 per share. For the quarter ended June 2024, the company reported revenue of $0.079 million from the OncoSil device, with combined Q3 and Q4 revenue totalling $0.171 million—161% higher than Q1 and Q2.
Key operational highlights include the treatment of the first commercial patients in Austria and the first patient treated in Türkiye, and a significant increase in pancreatic tumour vascularity from initial studies. OncoSil has also secured a 3-year distribution agreement for Saudi Arabia and raised $7.2 million in new equity.
Financially, OncoSil is in a solid position, with $4.509 million in cash and equivalents as of June 30, 2024, up from $2.930 million at the end of March. The recent capital raise added $5.415 million, with an additional $2.7 million announced in July. The company is focused on commercialising the OncoSil device in multiple markets, aiming for significant growth in the coming year.
CSL Limited (ASX: CSL)
Why CSL is a Premier ASX Healthcare Share
CSL Limited is a global biotechnology leader specialising in the development and delivery of innovative therapies for patients with life-threatening medical conditions. Known for its strong R&D pipeline and market leadership, CSL has consistently delivered robust financial performance and shareholder returns.
CSL's product portfolio includes life-saving medicines and vaccines, with a strong emphasis on rare and serious diseases. The company's ongoing commitment to innovation is reflected in its substantial investment in research and development, ensuring a steady pipeline of new products and therapies.
Financially, CSL has demonstrated resilience and growth, even in challenging market conditions. The company's strong revenue growth, combined with strategic acquisitions and partnerships, positions it well for continued success. Analysts remain optimistic about CSL's future, highlighting its market dominance, strong balance sheet, and consistent dividend payments as key factors for long-term investment.
In conclusion, ResMed, OncoSil Medical, and CSL Limited represent some of the best opportunities within the ASX healthcare sector. ResMed's leadership in the sleep disorder market, OncoSil's innovative cancer treatment medical device, and CSL's global biotechnology presence make them compelling choices for investors seeking growth and stability. As always, potential investors should conduct their own research and consider their investment goals and risk tolerance before making any decisions.
