The Australian healthcare sector continues to be a strong performer despite the market dip, with several ASX 200 healthcare stocks offering long-term growth potential. Investors looking for good healthcare stocks in 2025 should consider companies with solid financials, strong market positions, and consistent earnings growth. Some of the best ASX healthcare stocks also include CSL Limited, Cochlear, and ASX Sonic Healthcare, all of which have demonstrated resilience in uncertain market conditions. For those seeking diversification, a healthcare ETF ASX option could provide broad exposure to the industry. While global players like United Healthcare stock dominate internationally, Australia’s ASX healthcare sector presents compelling investment opportunities for both growth and income-focused investors.

2 Top ASX Healthcare stocks to Buy now:

1. MESOBLAST LIMITED (ASX: MSB)

Mesoblast Limited (ASX: MSB) announced on November 22, 2023, that the Blood and Marrow Transplant Clinical Trials Network (BMT CTN) has formalized an agreement to initiate a pivotal trial for the company’s primary product candidate, Ryoncil, aimed at treating adults with steroid-refractory acute graft versus host disease (SR-aGVHD). 

On October 31, 2023, Mesoblast published its Quarterly Activities and Cash Flow Report for the first quarter of the 2024 financial year, concluding on September 30, 2023. During this quarter, the company engaged in a highly productive dialogue with the United States Food and Drug Administration (FDA), which facilitated the establishment of a pathway for potential approvals of Ryoncil (remestemcel-L) for both pediatric and adult populations suffering from SR-aGVHD.

Mesoblast presented clinical findings demonstrating that the enhanced version of RYONCIL, produced through a manufacturing process recently inspected by the FDA, achieved consistently high survival rates in children afflicted with SR-aGVHD. This was true for both the product utilized in the Phase 3 clinical trial MSB-GVHD001 conducted from 2015 to 2018 and the product manufactured under the validated process proposed for commercial distribution, which has been used under the Emergency Investigational New Drug (EIND) protocol throughout 2023.

The FDA has recently indicated in its draft guidance for the development of agents targeting acute graft versus host disease (aGVHD) that a marketing application could be substantiated by favorable outcomes from a single-arm trial conducted in a refractory aGVHD population lacking available treatment options. 

Furthermore, the company reported a 37% reduction in net operating cash usage over the past two years, with expectations for continued year-on-year improvement. As of September 30, 2023, Mesoblast maintained a cash reserve of US$53 million.

Financial Performance (2019-2023):

Despite a significant decline in revenues over the past few years, Mesoblast exhibits potential for recovery in the near term, particularly with advancements toward commercialization and the favorable market conditions for its product candidates, notably Ryoncil. The revenue drop follows an extraordinary surge in 2020, largely attributed to the COVID-19 pandemic. Additionally, the company’s losses have remained consistent with those recorded in 2019 and 2022, despite improvements in operational and developmental aspects. Mesoblast’s financial standing reflects a robust equity base characterized by low leverage, which has remained relatively stable year on year. Furthermore, the company’s cash reserves have shown substantial growth over the last five years. The reduction in receivable collection days since 2019 further underscores an enhanced operational efficiency, even in the context of minimal commercial sales activity. The increase in cash outflows for operations is also justifiable, given the positive outcomes from clinical trials and the corresponding rise in research and development expenditures.

2. IPERIONX LTD (ASX:IPX)

IperionX Limited specializes in producing titanium alloys, titanium products, and critical minerals through focused exploration and development efforts in the United States. Central to its operations is the Titan Project, spanning more than 11,000 acres in western Tennessee, where it aims to extract vital minerals like titanium, rare earth elements, silica sand, and zircon.

The company operates an Industrial Pilot Facility (IPF) in Salt Lake City, Utah, serving as a pivotal site for testing and refining production techniques. Future plans include establishing a larger titanium production facility in Halifax County, Virginia, featuring a Titanium Demonstration Facility (TDF) and a Titanium Commercial Facility (TCF-1). 

From the company Reports:

• IperionX Limited (NASDAQ: IPX, ASX: IPX) has successfully secured firm commitments for a placement of 26.2 million new fully paid ordinary shares at A$1.91 per share, raising A$50.0 million (approximately US$33.0 million) before costs. The funds will primarily expand titanium manufacturing capacity in Virginia to 2,000 metric tons per annum, with investments in new equipment and engineering studies. The issue price represents a 10% discount to the last closing price of A$2.12, aimed at bolstering operational growth and efficiency.
• IperionX Limited (NASDAQ: IPX, ASX: IPX) has partnered with Vegas Fastener Manufacturing, LLC to develop titanium alloy fasteners and precision components. This collaboration targets supplying advanced products for the U.S. Army’s Ground Vehicle Systems Center (GVSC) and other critical sectors such as aerospace, naval, and oil & gas, emphasizing high performance and durability.
• The company has recently secured an order from GKN Aerospace for titanium plate test components using its advanced titanium technologies. GKN Aerospace, a global leader in aerospace systems, will test these components, exploring further collaborations with IperionX, including potential projects for the U.S. Department of Defense.
• The company has inked a deal with Lockheed Martin (NYSE: LMT) for titanium plate components manufactured using IperionX’s domestically produced titanium.
• IPX and Aperam Recycling’s American entity ELG Utica Alloys have partnered to create a low-carbon, 100% recycled titanium supply chain. ELG will supply clean titanium scrap metal, and IperionX will use its patented technology to produce sustainable titanium metal, aligning with Aperam’s circular economy strategy.
• IPX inked a deal with Ford Motor Company (NYSE: F) to supply titanium components using its innovative 100% recycled, low-carbon titanium metal for Ford Performance vehicles.