Two key ASX sectors that I’ll be researching for growth opportunities in 2021 are healthcare and technology.
Relative to many other countries, Australia boasts world-class healthcare infrastructure and medical research with state-of-the-art technology driving advancements in medical devices and other applications.
This in combination with our ageing population and rising middle class should create and sustain a high level of demand for these products. Here are 2 ASX shares that I’ll be watching closely in 2021.
PolyNovo
Born out of the CSIRO, PolyNovo Ltd (ASX: PNV) is a medical device manufacturer that is currently distributing its flagship product called NovoSorb BTM, which is used for serious burns victims and helps regenerate human tissue where it has been severely damaged.
The underlying technology dates back to 1988 but the company has only recently been distributing the BTM product on a global scale.
The product is proven to work effectively, but the company’s main hurdle is launching into new countries with approval from regulatory bodies and distributing either directly to buyers or through distribution partners.
PolyNovo has a bit of a leg up over some of the competition as it plans to expand into new markets such as a hernia treatment as well as breast implants. However, its new hernia treatment Syntrel is still in the development process and the company hopes it will be available towards the end of next year.
It will be interesting to keep an eye on PolyNovo in 2021 as they continue to expand into new countries which should drive sales of its BTM product.
Alcidion
Moving to a company that’s probably a bit less well-known, Alcidion Group Ltd (ASX: ALC) is a Melbourne-based company that has developed software used in hospital patient monitoring systems.
Gone are the days of the doctor writing notes on a piece of paper at the foot of the hospital bed.
Instead, Alcidion has designed its flagship Miya Precision platform, which essentially integrates electronic patient information from all current systems and uses it to automate routine tasks, care plans and improve the decision-making process.
The platform has been designed to streamline the patient journey and make the overall process safer through better-informed decisions.
Alcidion’s share price jumped recently following a fairly significant contract win, which will see the company providing software to South Tees Hospitals NHS foundation trust -a deal worth $9.5 million overall.
To me, Alcidion’s management also seem well-aligned with shareholders, demonstrated by CEO Kate Quirke buying of 1.5 million shares a few months ago at 13 cents.
I think 2021 will be an interesting year for Alcidion. While COVID-19 has slowed down the sales cycle, it will be telling to see how many more contracts Alcidion can win throughout 2021. If it can, it will hopefully see the company hit that inflection point on a profitability basis.
