In this article, we look at the 13 best low-cost pharmaceutical stocks to invest in. If you'd like to skip the pharmaceutical industry overview and move on to the top five low-cost pharmaceutical stocks on this list, see below.Please skip ahead 5 low-priced pharmaceutical stocks that are perfect for investment.
The pharmaceutical industry is one of the most interesting fields you are likely to encounter. This is because unlike other stock sectors such as consumer staples and consumer technology, where price-to-earnings ratios often depend on economic performance, pharmaceutical stocks can often offer investors the best of both worlds. Some pharmaceutical companies primarily sell over-the-counter drugs and other everyday medicines, while others operate in high-tech fields such as biotechnology.
This means that pharmaceutical stocks in the latter segment may not be the best performers in a high interest rate environment such as the one we are currently experiencing. It is very difficult to evaluate these stocks, whose main job descriptions often require advanced knowledge of biology and chemistry, and financial companies and analysts have a hard time deciding which pharmaceutical stocks are appropriate to invest in. We spend a lot of money on the right analysts to help you choose.
The latest news in the stock market is also very relevant to pharmaceutical stocks. The news is about inflation statistics for March 2024, with this data set beating expectations and major stock indexes such as the S&P 500 and Nasdaq largely paring gains driven by investor hype around artificial intelligence. This resulted in some reductions.
To understand how the shift in Wall Street investor sentiment following the release of the latest inflation numbers has affected pharmaceutical stocks, consider the performance of the S&P Pharmaceuticals Select Industry Index. This stock index is comprised of stocks in the pharmaceutical sector of S&P's classification system called the Global Industry Classification Standard (GICS). Over the past 12 months, the pharmaceutical stock index has fallen 4.52%, and these stocks have gained 3.21% over the past six months, while the index has fallen 8% so far in April.
But even though pharmaceutical stocks overall are down, that doesn't mean the industry wasn't in the news in April. Some of the most important pharmaceutical news for April 2024 comes from the world's largest pharmaceutical companies. These companies are Johnson & Johnson (NYSE:JNJ), AstraZeneca PLC (NASDAQ:AZN), and Pfizer Inc. (NYSE:PFE). Starting with Pfizer, the company announced Phase 3 data for its respiratory disease vaccine called ABRYSVO. ABRYSVO's latest trial aimed to see if the drug could trigger the necessary immune system and other responses in patients with pre-existing comorbidities such as diabetes. The results were good news for Pfizer, as the drug met all trial objectives.
The news surrounding AstraZeneca was more impressive in terms of its technological capabilities. The company achieved a major success after the U.S. Food and Drug Administration (FDA) accelerated approval of its cancer and solid tumor drugs to fight treatment-resistant tumors. These tumors often cannot be removed by surgery, and this is the fifth indication for this drug. But this was not AstraZeneca's only victory in the pharmaceutical industry. The second victory came in the form of another drug called Fasenra, which won FDA approval for use in children to help manage asthma.
Finally, before we get into the list of best low-cost drug stocks, US pharmaceutical giant JNJ also shook things up quite a bit in April 2024. The company, which paid a whopping $700 million in talcum powder settlements, was keen to remind everyone that its coffers were deep. This is because the company is currently acquiring specialty medical device company Shockwave Medical, Inc. (NASDAQ:SWAV) for a whopping $13.1 billion. JNJ aims to acquire Shockwave stock for $335 a share, and aims to gain a foothold in the global cardiac surgery market through this transaction.
While the $13.1 billion price tag is eye-popping, Times Square Capital Management said of Shockwave Medical in its Q4 2023 investor letter:
Shockwave Medical, which develops intravascular devices for calcifying cardiovascular disease, fell -4%. The company's sales and profits beat expectations, but management did not raise its outlook for the first time since the pandemic began. This hesitancy is due to private insurers' increased need for prior authorization for peripheral artery disease treatments and China's anti-corruption drive that has hindered Shockwave's ability to replenish product to its China joint venture. be. However, his 2024 outlook for Shockwave remains solid and we have added our position to short-term weakness.
With these details in mind, let's take a look at some low-priced pharma stocks to buy. Some notable stocks include Viatris Inc. (NASDAQ:VTRS), Teva Pharmaceutical Industries Limited (NYSE:TEVA), and Elanco Animal Health Incorporated (NYSE:ELAN).
Close-up of pills in the pharmacy. It represents the company's high quality pharmaceutical products.
our methodology
To create a list of the best low-priced pharma stocks, the most valuable pharma stocks in terms of market capitalization with a stock price below $20 based on the number of hedge funds that bought the stock in Q4 2023 We ranked 40 companies.
For these best low-cost pharma stocks, we used hedge fund sentiment. The top 10 consensus stocks selected by hedge funds have outperformed the S&P 500 index by more than 140 percentage points over the past 10 years (Please see here for the detail). That's why we pay close attention to this often ignored metric.
11 low-priced pharmaceutical stocks that are best for investment
11. Evolus, Inc. (NASDAQ:EOLS)
Number of hedge fund investors in Q4 2023: 24
Stock price: $11.89
Evolus, Inc. (NASDAQ:EOLS) is an American pharmaceutical company headquartered in Newport Beach, California. We primarily offer beauty products such as Botox alternatives. The stock has been doing very well of late, with shares up 47% in the past 12 months.
During the fourth quarter of 2023, 24 out of 933 hedge funds profiled by Insider Monkey bought and owned shares of Evolus, Inc. (NASDAQ:EOLS). Timothy P. Lynch's Stonepine Capital was the largest investor with a $56.1 million stake.
Evolus Inc. (NASDAQ:EOLS) is a hedge fund low-priced pharmaceutical stock, along with Teva Pharmaceutical Industries Limited (NYSE:TEVA), Viatris Inc. (NASDAQ:VTRS), and Elanco Animal Health Inc. (NYSE:ELAN) . I'm buying it.
10. Decifera Pharmaceuticals, Inc. (NASDAQ:DCPH)
Number of hedge fund investors in Q4 2023: 24
Stock price: $14.9
Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is a specialty pharmaceutical manufacturer primarily engaged in cancer treatment drugs. The company's stock has an average rating of “Buy” and an average analyst price target of $24.20.
In Q4 2023, 24 out of 933 hedge funds in Insider Monkey's database held shares in the company. Among these hedge funds, the largest shareholder in Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) is James E. Flynn's Deerfield Management, with $93.3 million worth of shares.
9. Avadel Pharmaceuticals plc (NASDAQ:AVDL)
Number of hedge fund investors in Q4 2023: 26
Stock price: $17
Avadel Pharmaceuticals plc (NASDAQ:AVDL) is an Ireland-based pharmaceutical company that provides treatments to help people with sleep disorders. March 2024 was an interesting month for the company. Although the company lost a patent lawsuit against a rival company, the amount of damages awarded to the winner was significantly lower than originally feared.
In the fourth quarter of last year, 26 of the 933 hedge funds surveyed by Insider Monkey were shareholders in Avadel Pharmaceuticals plc (NASDAQ:AVDL). Brian Ashford-Russell and Tim Woolley's Polar Capital held the largest stake, valued at $95.3 million.
8. Esperion Therapeutics, Inc. (NASDAQ:ESPR)
Number of hedge fund investors in Q4 2023: 28
Stock price: $1.93
Esperion Therapeutics, Inc. (NASDAQ:ESPR) sells medicines that help people regulate their cholesterol. The company won a victory in March 2024 when the FDA approved the use of its existing drug for additional use cases. Esperion Therapeutics, Inc. (NASDAQ:ESPR) says this will increase its product market by 70 million patients.
As of the end of December 2023, 28 of the 933 hedge funds profiled by Insider Monkey had invested in the company. The largest hedge fund stakeholder in Esperion Therapeutics, Inc. (NASDAQ:ESPR) is Sina Toussi's Two Seas Capital, through an investment of $22.9 million.
7. Dynavax Technologies Corporation (NASDAQ:DVAX)
Number of hedge fund investors in Q4 2023: 28
Stock price: $11.69
Dynavax Technologies Corporation (NASDAQ:DVAX) is a specialty pharmaceutical company that provides products to help prevent hepatitis B and also manufactures vaccines for hepatitis B. The company's stock has an average rating of “Buy” and an average analyst price target of $25.75.
Based on stock holdings for Q4 2023, 28 out of 933 hedge funds profiled by Insider Monkey were shareholders in Dynavax Technologies Corporation (NASDAQ:DVAX). The largest investor in our database is David Kroin's Deep Track Capital with US$99.1m worth of shares.
6. Organon & Company (NYSE:OGN)
Number of hedge fund investors in Q4 2023: 30
Stock price: $17.71
Organon & Co. (NYSE:OGN) is a women's health company with products that help with fertility, pregnancy management, and other use cases. The company sought to improve public trust in April 2024 after announcing new programs to help women manage their careers and the unique health risks they may face.
Thirty of the 933 hedge funds in Insider Monkey's Q4 2023 database bought the company's stock. Organon & Company (NYSE:OGN)'s largest hedge fund shareholder is Ken Griffin's Citadel Investment Group with a $60.7 million stake.
Viatris Inc. (NASDAQ:VTRS), Organon & Co. (NYSE:OGN), Teva Pharmaceutical Industries Limited (NYSE:TEVA), and Elanco Animal Health Incorporated (NYSE:ELAN) are among hedge funds' top low-cost pharmaceutical stocks. It is mentioned.
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Disclosure. none. 11 low-priced pharmaceutical stocks that are best for investment Originally published on Insider Monkey.
