GlaxoSmithKline plc (ADR) (GSK), Stryker Corporation (SYK): 3 Alternative Ways to Invest in China’s Booming Health Care Industry

China would be a huge market for Accuray Incorporated (NASDAQ:ARAY), due to its aging population. The country’s 2012 Cancer Registry Annual Report states that 2.7 million cancer deaths occur in China annually, with chances increasing dramatically in people over the age of 74. All types of cancer — with lung, liver, and stomach cancers being the top killers — are on the rise.

The CyberKnife is a laser knife that can move around healthy tissues to deliver precise, potent doses of radiation against cancerous tumors. The TomoTherapy system uses targeted radiation therapy, which delivers radiation “slice by slice” to a specific area, rather than irradiating the entire tumor. Both of Accuray Incorporated (NASDAQ:ARAY)’s products could reduce the need for traditional chemotherapy, which kills infected and healthy cells simultaneously.

Accuray Incorporated (NASDAQ:ARAY) recognizes the market potential in China. Last month, the company showcased its technology for the first time to hospital procurement officials during the 22nd China International Medical Instruments and Equipment Exhibition. The PLA General Hospital and Peking Union Medical College Hospital in Beijing — two of the most respected medical establishments in the country — have already purchased both systems.

Increased sales in China could help Accuray Incorporated (NASDAQ:ARAY) — which is currently unprofitable and posted a 45.6% year-on-year drop in revenue last quarter — find a new source of revenue and earnings growth.

The Foolish takeaway
Of these three stocks, Stryker Corporation (NYSE:SYK) is the safest bet on China, while Intuitive Surgical, Inc. (NASDAQ:ISRG) and Accuray Incorporated (NASDAQ:ARAY) are more speculative ones. However, all three have strong long-term growth potential in China — as the country’s population gets older, richer, and better informed about available medical devices and treatments.

The article 3 Alternative Ways to Invest in China’s Booming Health Care Industry originally appeared on Fool.com and is written by Leo Sun.

Leo Sun has no position in any stocks mentioned. The Motley Fool recommends Intuitive Surgical. The Motley Fool owns shares of Intuitive Surgical. 

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