10 Most Undervalued Biotech Stocks to Buy Now

4. Royalty Pharma Plc (NASDAQ:RPRX)

Forward P/E: 8.39

Number of Hedge Fund Holders: 33

Royalty Pharma Plc (NASDAQ:RPRX) is one of the top most undervalued biotech stocks to buy now. In a report released on August 7, Terence Flynn from Morgan Stanley maintained a Buy rating on Royalty Pharma Plc (NASDAQ:RPRX), setting a price target of $55.00.

The rating update came after Royalty Pharma Plc (NASDAQ:RPRX) reported its fiscal Q2 2025 results on August 6, with portfolio receipts for the quarter growing 20% to $727 million. Royalty receipts underwent an 11% growth, while net cash provided by operating activities reached $364 million.

Royalty Pharma Plc (NASDAQ:RPRX) also raised its full-year 2025 guidance, and now expects portfolio receipts in the $3.05 billion to $3.15 billion range.

Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies.

The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators.

Royalty Pharma Plc’s (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Novartis’ Promacta, Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and others.