In this article, we will be taking a look at the 12 Cheap Healthcare Stocks to Buy Now.
Mizuho health care sector strategist Jared Holz made an appearance on CNBC’s “The Exchange” on July 21 to discuss the challenges facing the healthcare industry and whether there are any opportunities in the field.
He said that it would be wonderful to occasionally cover a sector that outperforms the market, and said that he is undoubtedly upset with the current dynamics in the healthcare industry.
According to the strategist, the only times the healthcare industry has outperformed the market over the last ten years, and even then, that wasn’t a good setup, are when the market was down. Holz believes that the performance of the large-cap pharmaceutical business is significantly impacted by a cascade of problems.
He added to CNBC that nothing even comes close to this kind of pressure across the board if we go back a few decades, making this the worst the healthcare industry has ever experienced. Holz identified managed care and pharmaceuticals as the main offenders, claiming that they are bearing the most burden in terms of market capitalization.
With these trends in mind, let’s now take a look at the cheap healthcare stocks to buy now.
Our Methodology
Our methodology began by screening stocks using a stock analysis filter, selecting companies with a market capitalization above $2 billion and a forward P/E ratio below 15. From this filtered pool, we identified the top 12 stocks and ranked them according to their P/E ratios as of September 10, 2025.
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).
Here is our list of the 12 cheap healthcare stocks to buy now.
12. Bausch Health Companies Inc. (NYSE:BHC)
Forward PE Ratio:1.45
Bausch Health Companies Inc. (NYSE:BHC), a global specialty pharmaceutical company, has recently gained attention as an undervalued player in healthcare due to strategic acquisitions and pipeline developments rather than financial trends alone. The company focuses on areas including eye health, gastroenterology, hepatology, neurology, and dermatology. It is among the cheap healthcare stocks.
The most notable development is Bausch Health Companies Inc. (NYSE:BHC)’s acquisition of DURECT Corporation, announced in July 2025 and expected to close in Q3 2025. Valued at $63 million upfront with up to $350 million in milestone payments, the deal brings larsucosterol, an epigenetic modulator with FDA Breakthrough Therapy designation for alcoholic hepatitis (AH), a disease with no approved therapies in the U.S. This move strengthens the company’s hepatology portfolio alongside its Phase 3 rifaximin SSD program targeting cirrhotic patients.
Bausch Health Companies Inc. (NYSE:BHC) is also advancing other key pipeline assets. Larsucosterol could become a first-in-class therapy addressing an estimated 164,000 annual U.S. hospitalizations for AH. Rifaximin SSD is in Phase 3 trials to prevent hepatic encephalopathy in cirrhosis patients, with topline results expected by early 2026. In the medical aesthetics space, the firm recently launched the Fraxel FTX laser in the U.S., obtained Canadian clearance for Thermage FLX skin tightening, and awaits European approval for Clear + Brilliant Touch.
These moves reflect a broader strategy of focusing on high-value specialty therapeutics and underserved niches rather than mass-market competition. With larsucosterol’s potential breakthrough status, Bausch Health Companies Inc. (NYSE:BHC) positions itself as a leader in hepatology. Recently, the DURECT tender offer was extended to September 10, positive reimbursement for PrCABTREOTM gel in Canada was announced, and the company reinforced its leadership with strategic board appointments and continued patient-focused initiatives.
11. Organon & Co. (NYSE:OGN)
Forward PE Ratio: 2.73
Organon & Co. (NYSE:OGN), a global healthcare company focused on women’s health, biosimilars, and established pharmaceuticals, has been steadily expanding its footprint since spinning off from Merck in 2021. The company has strategically targeted biosimilars and critical therapies for underserved populations, positioning itself for growth in specialty and high-value treatments.
This month, Organon & Co. (NYSE:OGN) scored a major milestone with FDA approval of BILDYOS and BILPREVDA, biosimilars to PROLIA and XGEVA, respectively. Developed in partnership with Shanghai Henlius Biotech, these approvals mark a significant step in improving access to osteoporosis and bone cancer treatments. By providing cost-effective alternatives without compromising efficacy, the business aims to address the needs of aging populations and patients requiring critical bone care.
The corporation’s broader strategy reflects a pivot toward biosimilars as a growth engine while maintaining its core focus on women’s health and dermatology products. Organon & Co. (NYSE:OGN) is also expanding into oncology and immunology, building a pipeline designed to balance challenges from legacy brands with aggressive entries into high-value generics and specialty therapies.
10. Viatris Inc. (NASDAQ:VTRS)
Forward PE Ratio: 4.40
Viatris Inc. (NASDAQ:VTRS), a global healthcare company formed from the 2020 merger of Mylan and Pfizer’s Upjohn division, continues to expand its presence in both generics and specialty pharmaceuticals. Operating in over 165 countries, the company blends established medicines with innovative therapies, positioning itself as a cost-effective healthcare stock backed by a growing late-stage pipeline.
A key development in 2025 is the FDA approval of Viatris Inc. (NASDAQ:VTRS)’s first generic iron sucrose injection, a version of Venofer, which had annual U.S. sales of approximately $515 million. This approval marks a significant entry into the intravenous iron market and reflects the firm’s focus on high-value complex generics as a cornerstone of its growth strategy.
The corporation has also reported positive late-stage trial results for several pipeline assets, including fast-acting meloxicam for acute pain, the next-generation birth control patch XULANE LO, ophthalmology products for presbyopia, and new indications for EFFEXOR in Japan. For investors tracking cheap healthcare stocks, these successful Phase 3 readouts reinforce the business’s late-stage pipeline and support upcoming product launches and regulatory filings through 2026.
Viatris Inc. (NASDAQ:VTRS)’s strategic emphasis on complex generics and specialty products highlights its shift from a primarily generic-focused business to a more innovation-driven company. CEO Scott A. Smith has underscored the resilience of the diversified portfolio and the importance of commercial execution for new launches.
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