Investor Guide: Health & Biotech FY2025 featuring Tim Boreham

In an era when people are increasingly concerned about ethical investing, or using their money for increasing personal wealth and for the greater good, healthcare is a market sector that stands out.

And it’s comprised of several interesting sub-sectors, including pharmaceuticals, medical devices, health services and health technology, where use cases and benefits of artificial intelligence have become a focal point.

Companies in this sector have potential to save lives and improve quality of life through better diagnoses, development of novel treatments, or advancement of standards of care.

In Australia, we have a long, proud history in healthcare and medical research, which has included Nobel Prizes in Physiology or Medicine.

We are ranked seventh in the world in medical research, with strong support from industry and government ensuring we continue to shine in an area of global importance.

To capitalise on our world-leading research, the federal government is prioritising and spending big on Australian-made to grow our medical manufacturing capabilities.

Several programs and initiatives in recent years have been introduced encouraging companies to establish medical and healthcare manufacturing facilities in Australia, in turn boosting jobs in the sector and our economy.

Government and industry leaders believe Australia has the potential to become a global force in manufacturing of healthcare and medical products. However, the healthcare sector has unique challenges and risks.

Discoveries can take years to reach clinical trials, regulatory approval and commercialisation, while the landscape is filled with ideas that, for various reasons, didn’t succeed.

But when new treatments or medical devices are successfully developed and commercialised, this can bring significant returns for investors.

The ASX healthcare sector is home to companies ranging in size and scope, from the large and established to those in early stages of research and development, providing a range of opportunities for investors based on time frame and risk tolerance.

Our biggest company on the ASX health index, CSL, was founded in 1916 as Commonwealth Serum Laboratories, an Australian government body to service the needs of Australia isolated by war, before being incorporated in 1991 and listing on the local bourse in 1994.

In this special investor guide, health and biotech guru Tim Boreham leads Stockhead’s deep dive into the most cutting edge sector on the ASX.

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