In this article, we will be taking a look at the 10 Most Undervalued Pharma Stocks to Buy Now.

Pharmaceutical manufacturing in the U.S. has declined sharply over recent decades, with most active ingredient production shifting overseas due to lower labor costs. In 2023, the U.S. imported about $203 billion worth of pharmaceuticals, roughly 73% from Europe, especially Germany, Ireland, and Switzerland. However, change may be on the horizon: on May 5, CNBC reported that President Trump signed an executive order to encourage domestic drug production by streamlining site approvals and introducing potential tariffs on imports.

Trump’s order instructs the FDA to speed up U.S. drug manufacturing approvals by cutting unnecessary steps and supporting domestic companies early on. It also raises inspection fees for foreign plants and tightens enforcement on reporting active ingredient sources. FDA Commissioner Marty Makary noted the agency can now perform more inspections, including unannounced visits to overseas sites, using existing resources. Makary said:

“We had this crazy system in the United States where American pharma manufacturers .. are put through the ringer with inspections, and the foreign sites get a lot easier with scheduled visits, while we have surprise visits.”

The White House estimates it takes 5 to 10 years to build new pharmaceutical manufacturing capacity, an “unacceptable” delay for national security. President Trump addressed the issue in a fact sheet:

“We don’t want to be buying our pharmaceuticals from other countries because if we’re in a war, we’re in a problem, we want to be able to make our own. As we invest in the future, we will permanently bring our medical supply chains back home. We will produce our medical supplies, pharmaceuticals, and treatments right here in the United States.”

Trump’s executive order directs the FDA and EPA to fast-track pharmaceutical facility construction in the U.S., ahead of potential tariffs on imported drugs. While some companies are investing in domestic manufacturing, others warn that tariff threats may hurt R&D and production plans. According to GlobalData (via CNBC), reshoring could strengthen the supply chain but may also raise drug prices and production costs.

Our Methodology 

For our methodology, using stock analysis, we filtered pharma stocks with a market cap over 2 billion and a P/E ratio under 20. We ranked the top stocks based on their PE ratios as of July 18.

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. Organon & Co. (NYSE:OGN)

P/E Ratio: 3.35 

Organon & Co. (NYSE:OGN), a global healthcare company specializing in women’s health, biosimilars, and established brands, underwent major changes in 2025. On May 1, the company slashed its quarterly dividend from $0.28 to $0.02 per share (annualized from $1.12 to $0.08) to prioritize debt reduction following its $1.2 billion acquisition of Dermavant in late 2024. This shift led to a 27% drop in stock price and a shareholder lawsuit alleging securities fraud due to prior reassurances about maintaining the dividend.

In April, Organon & Co. (NYSE:OGN) laid off 93 employees at its Jersey City headquarters, part of an ongoing global restructuring that began in 2023 and impacted around 5% of the workforce in early 2025. The restructuring responds partly to the loss of exclusivity for Atozet, the company’s second-largest product, which saw sales drop 9% in 2024, with continued decline expected.

That same month, the corporation acquired U.S. commercial rights to TOFIDENCE, a biosimilar to ACTEMRA (tocilizumab), from Biogen, expanding its immunology biosimilars portfolio. Organon & Co. (NYSE:OGN) will pay upfront fees, royalties, and milestone payments, while Bio-Thera Solutions retains U.S. manufacturing rights. TOFIDENCE enters a competitive space alongside Celltrion’s Avtozma and Fresenius Kabi’s Tyenne.

On June 12, the business partnered with Evvy to increase access to XACIATO (clindamycin phosphate) vaginal gel 2%, reaffirming its women’s health focus. Its flagship product, Nexplanon, posted 14% growth last quarter.

In leadership news, Ramona A. Sequeira, President at Takeda, will join the company’s Board on July 1, serving on the Talent Committee, as the company continues its strategic transformation.

9. Sanofi (NASDAQ:SNY)

P/E Ratio: 8.92 

Sanofi (NASDAQ:SNY), a global biopharmaceutical leader headquartered in France with about 83,000 employees, is focused on immunology, oncology, rare diseases, and vaccines. The company continues to expand its innovative pipeline through internal research and strategic acquisitions.

In June 2025, Sanofi (NASDAQ:SNY) announced its largest deal of the year, a $9.5 billion acquisition of U.S.-based Blueprint Medicines. This strategic move strengthens the company’s position in rare immunological diseases. Blueprint adds to the business’s portfolio Ayvakit/Ayvakyt (avapritinib), the only approved treatment for systemic mastocytosis (SM) in the U.S. and EU, along with promising pipeline assets like elenestinib and BLU-808, both targeting KIT-driven and other immune-related conditions.

The acquisition also enhances the corporation’s reach through Blueprint’s existing relationships with allergists, dermatologists, and immunologists, aligning well with Sanofi (NASDAQ:SNY)’s goal to become a top player in immunology. CEO Paul Hudson called the deal a major step toward building a global immunology powerhouse.

This move complements the company’s existing success with Dupixent (dupilumab), its flagship immunology drug, recently approved in the U.S. as the first targeted treatment for bullous pemphigoid.

In addition, the business plans to invest at least $20 billion in the U.S. by 2030 to boost R&D, manufacturing, and new medicine launches, supporting growth and improving supply chain resilience.