In this article, we will look at the 10 Most Undervalued Biotech Stocks to Buy Now.
On July 25, Salveen Richter, Goldman Sachs’ lead biotech analyst, appeared on CNBC’s ‘Squawk Box’ to talk about the state of the biotech sector and what to expect from the earnings season, among other things.
She stated that there have been quite a few years of negative earnings revision cycles for biotech and healthcare, and what she wants to see now is these companies achieving the numbers.
Richter added that they have started to have some stability, and Q2 historically tends to be a stronger quarter. Some biotech companies in the industry thus have the potential to deliver strong financial results.
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Two other factors to consider in the industry are launches and pipelines beyond numbers, according to the analyst.
There have been quite a few drug launches that have played out this year that she will continue to watch. Talking about pipelines beyond numbers, she stated that Alzheimer’s disease has started to be a focus for the season, as has pain.
With these trends in view, let’s look at the most undervalued biotech stocks to buy now.
A biotechnologist in a lab wearing an apron and safety glasses, working on a biopharmaceutical process.
Our Methodology
We reviewed financial media reports and ETFs to compile an initial list of biotech stocks with a forward P/E below 15 and selected the top 10 stocks with the highest number of hedge fund holders as of Q1 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of the number of hedge fund holders.
Note: All data was recorded on August 9.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Most Undervalued Biotech Stocks to Buy Now
10. Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL)
Forward P/E: 6.45
Number of Hedge Fund Holders: 10
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is one of the top most undervalued biotech stocks to buy now. On August 6, analyst Joseph Pantginis from H.C. Wainwright reiterated a Buy rating on Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) with a $57.00 price target.
The analyst based the positive rating on the company’s promising growth outlook and solid financial performance, stating that Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) reported an EPS of $3.28 in fiscal Q2 2025, exceeding both the firm’s estimate of $2.52 and the consensus of $1.40.
The company also surpassed expectations by reporting $101.7 million in total revenue in the quarter, attributed primarily to higher-than-expected revenue from Tavalisse. The analyst reasoned that Tavalisse benefited from enhanced access and higher patient starts after changes in Medicare Part D coverage.
Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) is a clinical-stage biotechnology company that discovers and develops targeted, novel drugs in oncology, immunology, and immune oncology. Its product portfolio includes Tavalisse, Fostamatinib, and R835.
9. CorMedix Inc. (NASDAQ:CRMD)
Forward P/E: 9.67
Number of Hedge Fund Holders: 12
CorMedix Inc. (NASDAQ:CRMD) is one of the top most undervalued biotech stocks to buy now. On August 7, Needham analyst Serge Belanger maintained a Buy rating on CorMedix Inc. (NASDAQ:CRMD) and set a price target of $20.00.
The analyst based the rating on the company’s strategic growth potential, stating that its acquisition of Melinta Therapeutics includes a portfolio of hospital-based antifungals and antibiotics that is anticipated to considerably increase sales, offering a solid opportunity for label expansion.
According to the analyst, this initiative positions CorMedix Inc. (NASDAQ:CRMD) to diversify its portfolio in the hospital sector beyond its present offerings by engaging in further product acquisitions and business development.
CorMedix Inc. (NASDAQ:CRMD) is a medical device and biopharmaceutical company that develops and commercializes therapeutics to treat and prevent diseases and medical conditions.
8. Puma Biotechnology, Inc. (NASDAQ:PBYI)
Forward P/E: 5.27
Number of Hedge Fund Holders: 16
Puma Biotechnology, Inc. (NASDAQ:PBYI) is one of the top most undervalued biotech stocks to buy now. In a report released on August 8, Gena Wang from Barclays maintained a Sell rating on Puma Biotechnology, Inc. (NASDAQ:PBYI) and set a price target of $2.00.
The rating update came after Puma Biotechnology, Inc. (NASDAQ:PBYI) reported its fiscal Q2 2025 results on August 7. Product revenue net for fiscal Q2 2025 came up to $49.2 million, up from $44.4 million in fiscal Q2 2024.
The product revenue net consisted solely of revenue from sales of NERLYNX, which is Puma Biotechnology, Inc.’s (NASDAQ:PBYI) first commercial product.
Product revenue net in the first six months of 2025 was $92.3 million, up from $84.6 million in the same time period in 2024.
Puma Biotechnology, Inc. (NASDAQ:PBYI) is a biopharmaceutical company involved in the acquisition and development of innovative products to treat different kinds of cancers.
The company’s focus is on the in-licensing drug candidates that are either in the process of or have already obtained initial clinical testing to treat cancer. It then endeavors to develop these drug candidates further for commercial use.
7. Genmab A/S (NASDAQ:GMAB)
Forward P/E: 15.96
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is one of the top most undervalued biotech stocks to buy now. On August 7, William Blair analyst Matt Phipps reiterated a bullish stance on Genmab A/S (NASDAQ:GMAB), giving the stock a Buy rating without assigning a price target.
The analyst supported the rating with the company’s solid financial performance and promising pipeline developments, stating that Genmab A/S (NASDAQ:GMAB) surpassed both consensus and internal revenue estimates, reporting strong fiscal Q2 results.
He attributed the growth to a notable sales growth of Epkinly and robust royalties from Darzalex and Kesimpta.
The company’s financial strength prompted an upward revision of the full-year revenue guidance, suggesting increased confidence in solid performance by Genmab A/S (NASDAQ:GMAB), the analyst added.
Genmab A/S (NASDAQ:GMAB) is an international biotechnology company that develops human antibody therapeutics for the treatment of cancer and other diseases.
Its product pipeline includes DARZALEX to treat certain indications of multiple myeloma, TEPEZZA for the treatment of thyroid eye disease, and Arzerra to treat certain indications of chronic lymphocytic leukemia.
6. Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY)
Forward P/E: 8.68
Number of Hedge Fund Holders: 27
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is one of the top most undervalued biotech stocks to buy now. H.C. Wainwright analyst Patrick Trucchio reiterated a Buy rating on Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) on August 6, setting a price target of $70.00.
The analyst told investors that Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) has continuously advancing pipeline programs and has exhibited consistent commercial execution, suggesting resilient growth.
This holds especially true for its product WAKIX, which has shown solid revenue growth and expanded its prescriber base.
The analyst also reasoned that Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) has a solid financial position with reaffirmed revenue guidance and considerable cash reserves, positioning it to pursue and self-fund growth opportunities.
Harmony Biosciences Holdings, Inc. (NASDAQ:HRMY) is a commercial-stage pharmaceutical company that develops and commercializes therapies to treat neurological disorders.
Its product, WAKIX, is a molecule that increases histamine signaling in the brain by binding to H3 receptors. The company has one of the strongest pipelines for people with rare neurological diseases.
5. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Forward P/E: 10.16
Number of Hedge Fund Holders: 31
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the top most undervalued biotech stocks to buy now. On August 6, H.C. Wainwright analyst Mitchell Kapoor raised the firm’s price target on Halozyme Therapeutics, Inc. (NASDAQ:HALO) to $75 from $72, keeping a Buy rating on the shares.
The rating update came after Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported its fiscal Q2 2025 results.
The analyst told investors in a research note that Halozyme Therapeutics, Inc. (NASDAQ:HALO) raised its fiscal 2025 guidance for the third time this year following another quarter of solid results.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported its fiscal Q2 2025 results on August 5, with total revenue increasing 41% year-over-year to $326 million and royalty revenue growing 65% year-over-year to $206 million.
Net income for the quarter rose 77% year-over-year to $165 million, while adjusted EBITDA increased 65^ year-over-year to $226 million.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical technology platform company that develops, manufactures, and commercializes drug-device combination products through advanced auto-injector technology.
They offer commercial or functional benefits, including increased patient comfort and adherence, and enhanced tolerability and convenience.
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.
3. Incyte Corporation (NASDAQ:INCY)
Forward P/E: 12.86
Number of Hedge Fund Holders: 37
Incyte Corporation (NASDAQ:INCY) is one of the top most undervalued biotech stocks to buy now. Wells Fargo upgraded Incyte Corporation (NASDAQ:INCY) to Overweight from Equal Weight on August 6, raising the price target to $89 from $67.
The firm told investors in a research note that it believes Incyte Corporation’s (NASDAQ:INCY) Phase 1 update for myelofibrosis in Q4 would be positive.
It expects the potential for research and development “rationalization” along with future business development to provide upside for the stock.
The firm also believes Incyte Corporation (NASDAQ:INCY) can address its Jakafi loss of exclusivity.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics, focusing on oncology, hematology, inflammation, and autoimmunity therapeutic areas.
2. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Forward P/E: 13.33
Number of Hedge Fund Holders: 59
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the top most undervalued biotech stocks to buy now. Analyst Joseph Schwartz from Leerink Partners reiterated a Buy rating on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) on August 6, keeping the price target at $105.
The analyst told investors that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has promising pipeline developments and has exhibited solid financial performance. Its fiscal Q2 2025 sales of $825 million exceeded expectations, prompting an upward revision of the lower end of its full-year revenue guidance.
According to the analyst, these trends suggest robust demand, especially for the company’s product Voxzogo, which also surpassed sales expectations.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes therapies for serious and life-threatening medical conditions and rare diseases. The company’s product pipeline includes Valoctocogene roxaparvovec, Vosoritide, and BMN 307.
1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Forward P/E: 14.34
Number of Hedge Fund Holders: 66
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the top most undervalued biotech stocks to buy now. Guggenheim analyst Yatin Suneja raised the firm’s price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) to $815 from $810 on August 4, keeping a Buy rating on the shares.
The analyst told investors in a post-earnings note that the company’s fiscal Q2 performance exceeded investor expectations due to solid Dupixent sales and “a good performance from a struggling Eylea franchise.”
Suneja added that management made “some interesting comments on the call regarding BD strategy,” suggesting that Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is now open to considering “differentiated later-stage opportunities in areas with high unmet medical need” compared to its previous focus on early-stage assets.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions.
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