Top 5 ASX healthcare shares to watch in 2025

What are healthcare shares?

Healthcare shares are the stocks of publicly listed companies that operate in the medical industry. The healthcare sector makes up one of the largest portions of the global economy, with a range of different categories of businesses, including:

• Pharmaceutical companies: these are involved in producing over-the-counter and prescription drugs. Often called ‘big pharma’, these companies spend large portions of their income on R&D
• Healthcare services: these companies include the hospitals and clinics, which are the backbone of any healthcare system. Although many countries choose to run a public healthcare system, private healthcare companies are available for share trading. Insurance companies are also included in this sector
  
• Medical device stocks: these are the companies involved in the creation and distribution of everything from artificial joints to blood pressure monitors. The products of these companies are usually always in demand
  
• Biotechnology: the companies in this section of healthcare are involved in research and development of medicines and technologies derived from living organisms. They provide treatment for chronic and terminal ailments

What moves the price of healthcare shares?

The prices of healthcare stocks, like most assets, are driven by the forces of supply and demand. There is a wide range of factors that cause share prices to change, including news and economic data.

Broadly speaking, the other factors that affect healthcare shares are:

• Demographics: as people live longer and the population grows, there’s an increased reliance on medical services. The greater demand for drugs and other products can have a positive impact on share prices
• Fiscal policy: the relationship between government spending and private companies is an important factor when assessing healthcare stocks. Policies that impact the taxation of companies and the amount companies can charge for their drugs can greatly impact profit margins
• Research and development: for manufacturers, the introduction of new products has the largest impact on their share price. Prior to a drug being released, the outcome of clinical trials and any related news will affect the company’s share price. A dramatic example of this was the development of the Covid-19 vaccines
• Regulations: any regulation that could restrict the output of manufacturing companies or cause issues in service delivery could play out negatively across share prices

What to consider before trading healthcare shares

The healthcare industry often experiences volatility. The impacts of Covid-19 have both increased demand for R&D around treatments, as well as lowered the demand for other services.

Healthcare shares have been a mixed bag through the 2020s, with some riding high on the ‘Covid effect’ while others have declined.

Before you take a position on or buy a healthcare stock, it’s important to do your research and look at how they’ve performed recently.

Depending on your goals – whether you’re interested in long- or short-term market movements – you’ll need to look at the lasting sustainability of the company’s share price. If it’s overvalued, you might consider taking a short position on it, in anticipation of a stock market correction. And if it’s undervalued, you might want to go long or buy to benefit from long-term growth.

Top 5 ASX healthcare shares to watch in 2025

We’ve selected these shares based on their market caps, ordering them from the largest ASX-listed healthcare stock.

Overview of the healthcare shares in this article

Whether you’re thinking of share trading by buying individual shares, or trading via CFDs, you can access all the stocks on this list with us.

1. Sigma Healthcare Limited (ASX: SIG)

Market cap: A$33.65 billion¹

Current focus: retail pharmacy franchising and warehousing

As Australia’s largest retail pharmacy franchisor, Sigma Healthcare is most well-known for owning the Chemist Warehouse Group, having merged with it in February 2025. This is after it scored a five-year deal to service the Chemist Warehouse Group, starting in July 2024.

The company has also invested more than A$300 million in its distribution centres (DCs) and warehousing tech over the past four years.² Its 14 DCs deliver to pharmacies across Australia, and this is a major part of its core operations.

Its revenue exceeded A$4.8 billion in its latest financial year results report,³ weathering economic headwinds with higher interest rates and a tighter squeeze on consumers’ pockets.

Highlights:

• Revenue grew by 45.7% in the last financial year⁴
• Sigma signed a five-year funding agreement between the Department of Health and Aged Care and the National Pharmaceutical Services Association (NPSA), which the company anticipates will lead to substantial future growth⁵

2. Pro Medicus Limited (ASX: PME)

Market cap: A$33.40 billion⁶

Current focus: radiology technology solutions

Pro Medicus provides a suite of radiology IT services to hospitals, imaging centres and healthcare groups globally. Its flagship product is the Visage platform, which boasts high-speed capabilities and scales to accommodate the needs of large businesses.

It has secured lucrative contracts, particularly in North America, and its pay-per-view model benefits both the company and its clients, as they only pay for what they need.

In its most recent interim half-year results report, Pro Medicus stated its net profit was up 42.7% to A$51.7 million.⁷

The company is debt-free – a healthy position to be in during any economic times.

Highlights:

• According to the latest half-year interim statement, revenue from ordinary activities was A$97.2 million – up 31.1% from the preceding period⁸
• It paid a fully franked dividend of A$0.25 per share in the same timeframe⁹
• Cash and financial assets totalled A$182.3 million¹⁰

3. Cochlear Limited (ASX: COH)

Market cap: A$20.72 billion¹¹

Current focus: Nucleus cochlear implant

Cochlear, a medical device company specialising in manufacturing the Hybrid acoustic-electric cochlear implants and the Baha bone conduction implants, is based in Sydney.

The company was formed in 1981 as a subsidiary of Nucleus, with the financial backing of the Australian government.

Its products are made for those with conductive hearing loss, mixed hearing loss and single-sided deafness.

In its latest financial results, the company states its sales revenue increased 5% to A$1.17 million, and it maintains a strong balance sheet.¹²

For FY25, it expects the underlying net profit to be on the lower end of the A$410 million – A$430 million range.¹³

Highlights:

• Acoustics revenue increased 22%, while cochlear implant revenue increased 13%¹⁴
• It experienced solid growth in North America and Asia Pacific in the same period¹⁵
• Emerging markets are also a strong force for the company, growing by 3%¹⁶

4. Sonic Healthcare Limited (ASX: SHL)

Market cap: A$13.69 billion¹⁷

Current focus: pathology, radiology and primary care medical services

Sonic Healthcare operates across Australasia, Europe and North America, and is the largest medical laboratory provider in Australasia and Europe, and the third largest in the US.

Its business model is quite unique – it enables individual laboratories to maintain their identity while benefiting from the big company’s expertise. It emphasises local medical know-how but uses its presence to scale labs.

Sonic Healthcare has grown largely through acquisitions – over the past few years, it’s acquired smaller practices across Europe and the US, with Ladr being the most recent – in December 2024.

Highlights:

• In its latest annual report, revenue was up 8.4% to A$4.669 million¹⁸
• EBITDA was A$827 million¹⁹
• It’s on track to achieve full-year earnings goals²⁰

5. Ramsay Health Care Limited (ASX: RHC)

Market cap: A$8.93 billion²¹

Current focus: private hospitals

Ramsay Health Care is a shining light on the ASX; it has a global presence with 480 facilities across 11 countries, making it one of the biggest hospital healthcare companies in the world. Its main markets are Australia, the UK and Continental Europe.

Its business model involves running private hospitals that cater to patients looking for elective surgeries, specialised treatment and other healthcare services.

Due to its global nature, one of its greatest strengths is adapting to local regulations while still maintaining a premium standard of care.

The company is Australia’s largest private hospital operator and employs more than 90,000 people.²²

Highlights:

• The largest private provider of hospital services to the NHS in the UK²³
• Elysium, the mental health services provider arm of the company, reported a 12.5% increase in revenue – stated in the most recent half-year report²⁴

How to trade healthcare shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX healthcare shares on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX healthcare shares available for direct ownership
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about healthcare shares 

Footnotes
 

1. TradingView, July 2025
2. Sigma Healthcare, July 2025
3. Sigma Healthcare annual report, March 2025
4. Sigma Healthcare annual report, March 2025
5. Sigma Healthcare annual report, March 2025
6. TradingView, July 2025
7. Pro Medicus interim results, February 2025
8. Pro Medicus interim results, February 2025
9. Pro Medicus interim results, February 2025
10. Pro Medicus interim results, February 2025
11. TradingView, July 2025
12. Cochlear financial results, February 2025
13. Cochlear financial results, February 2025
14. Cochlear financial results, February 2025
15. Cochlear financial results, February 2025
16. Cochlear financial results, February 2025
17. TradingView, July 2025
18. Sonic Healthcare annual report, February 2025
19. Sonic Healthcare annual report, February 2025
20. Sonic Healthcare annual report, February 2025
21. TradingView, July 2025
22. Ramsay Health Care half-year report, February 2025
23. Ramsay Health Care half-year report, February 2025
24. Ramsay Health Care half-year report, February 2025