ASX healthcare sector rebounds 42% from recent lows

The S&P/ASX 200 Health Care Index has experienced a significant rebound, rising 42% since reaching a nine-year low on June 3. This recovery follows a period of decline driven by high shipping and labor costs, cost-of-living pressures, and regulatory uncertainty in the US biotech sector.

Among the companies noted in the sector, Mesoblast Ltd has seen a 9.4% rise since early June. Analysts at Bell Potter have issued a buy recommendation for Mesoblast, suggesting a potential 12-month price target of $4.45, which would represent a doubling of its current price.

In other market movements, ResMed, a global medical equipment provider, is trading approximately 27.3% below its 52-week high. Meanwhile, Qantas Airways Ltd has seen its share price decline by roughly 10.9% since the beginning of 2025.