Healthcare is one area of the market I think could be a great place to focus when investing for the long term.

The combination of ageing populations, rising healthcare spending, and ongoing innovation creates a supportive backdrop that can play out over many years. 

With that in mind, here are two ASX healthcare shares that stand out to me right now after falling heavily from their highs.

Two lab workers fist pump each other.

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CSL has been through a difficult period, and that has shown up clearly in the biotech giant’s share price.

Although this has been disappointing, I think it is worth sticking with the ASX healthcare share.

Its CSL Behring division remains a global leader in plasma therapies, with demand supported by chronic and rare diseases that require ongoing treatment. That creates a recurring revenue base that can grow over time as patient numbers increase.

There is also a pipeline of products and innovation that can support future growth, alongside the company’s vaccine and specialty pharmaceuticals divisions.

The recent CSL share price weakness has brought valuation multiples back toward levels that look cheap compared to its history. When combined with its positive long-term growth profile, I think that creates a more favourable risk-reward setup.

Over a 5 to 10 year period, I think CSL has the potential to rebuild momentum as execution improves and its growth drivers continue to play out. This could make it a great buy and hold option.

ResMed operates in an area that continues to expand globally.

Sleep apnoea remains significantly underdiagnosed, with management estimating that there are over 1 billion sufferers across the world.

But with awareness growing thanks to education and technology, demand for ResMed’s devices and software solutions has been increasing and looks set to continue increasing over the next decade.

ResMed isn’t just selling masks. What stands out to me in is how the company is building an ecosystem.

It combines its hardware with cloud-based software and data insights, which allows it to support patients and healthcare providers across the full treatment journey. That creates a more connected model and strengthens its competitive position.

So, with the ResMed share price well below previous highs, I think the setup looks more compelling from a long-term perspective. This is especially with the combination of structural demand and a strong market position giving it a clear pathway to continue growing.

Foolish takeaway

Looking ahead, I see both of these ASX healthcare shares benefiting from long-term demand and continued innovation.

Their recent share price declines may be disappointing for shareholders, but I think they have created an entry point that looks appealing for buy and hold investors.

Over a five to 10 year timeframe, I think CSL and ResMed shares have the quality and positioning to deliver strong returns and outperform the market.