In this article, we discuss 10 best low price pharma stocks to buy now.
The global pharmaceuticals market was forecasted to grow from $1454.66 billion in 2021 to $1587.05 billion in 2022 at a compound annual growth rate (CAGR) of 9.1%. As companies realign their operations and rebound from pandemic-driven constraints, the global pharmaceutical market is expected to reach $2135.18 billion in 2026 at a CAGR of 7.7%. While North America was the biggest region in the pharmaceuticals market in 2021, the Middle East is expected to be the quickest growing market in the forecast period.
According to the World Health Organization, one in every six people on the planet will be 60 or older by 2030. The population aged 60 and above will increase from 1 billion in 2020 to 2.2 billion by 2050. This significant elevation in the aging population will boost the number of patients with chronic diseases such as rheumatoid arthritis, hypertension, diabetes, and cancer. This will lead to an increase in the demand for pharmaceuticals used for the treatment of these diseases, which will meaningfully impact market growth in the future.
According to McKinsey, drug spending has increased, and dispensing revenue grew from $450 billion in 2019 to $500 billion in 2021. The growth was mainly driven by specialty drugs, which are now responsible for 40% of the total dispensing revenue. Ongoing innovation in drug development could boost specialty profit even more, and these profit pools are anticipated to increase at an 8% CAGR from 2021 to 2025. New technology-led pharmacies have entered the market and are steadily gaining share, featuring direct-to-consumer models with digital prescription management, automated workflows, and swift home delivery services. These innovative pharmaceutical firms will prompt higher competition in the market, which can potentially enhance the business models of larger retail and mail pharmacies as well, offering margin upside.
To benefit from the boom in the pharmaceutical industry, investors usually lean towards firms like Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and Moderna, Inc. (NASDAQ:MRNA). However, in this article, we discuss some of the top low price pharma stocks, which offer the same bang for the buck.
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Our Methodology
We selected the following low price pharma stocks based on positive analyst ratings, ongoing and pipeline projects, and future growth potential. These stocks were priced under $20 as of October 17. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.
Best Low Price Pharma Stocks To Buy Now
10. Evotec SE (NASDAQ:EVO)
Number of Hedge Fund Holders: 1
Share Price as of October 17: $8.31
Evotec SE (NASDAQ:EVO) is a German drug discovery and development company partnering with pharmaceutical and biotechnology firms worldwide. The company is creating pharmaceutical products in multiple therapeutic areas, such as diabetes, fibrosis, infectious diseases, CNS diseases, oncology, pain and inflammation, immunology, respiratory diseases, and women’s health. Evotec SE (NASDAQ:EVO) is one of the best low price pharma stocks to invest in.
On October 17, Toronto Innovation Acceleration Partners (TIAP) and Evotec SE (NASDAQ:EVO) announced that they had expanded their translational BRIDGE partnership LAB150, to sign on Amgen Inc. (NASDAQ:AMGN) as a strategic partner. The expansion will result in an investment of $14 million to expedite LAB150 programs for creating new life science companies. On September 21, Evotec SE (NASDAQ:EVO) announced that it is collaborating with Adapsyn Bioscience to get access to novel drug-like small molecules from microorganisms. The multi-year collaboration will provide Evotec SE (NASDAQ:EVO) several bioactive small molecules to screen against high value targets.
Citi analyst Peter Verdult on September 13 maintained a Neutral rating on Evotec SE (NASDAQ:EVO) and trimmed the price target on the shares to EUR 28 from EUR 30.
According to Insider Monkey’s data, Cathie Wood’s ARK Investment Management held 11,458 shares of Evotec SE (NASDAQ:EVO) at the end of the second quarter of 2022, worth $316,000.
Like Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and Moderna, Inc. (NASDAQ:MRNA), Evotec SE (NASDAQ:EVO) is one of the best pharma stocks to watch.
9. Theratechnologies Inc. (NASDAQ:THTX)
Number of Hedge Fund Holders: 4
Share Price as of October 17: $2.06
Theratechnologies Inc. (NASDAQ:THTX) was incorporated in 1993 and is headquartered in Montreal, Canada. It is a biopharmaceutical company that focuses on the development and commercialization of multiple therapies to address unmet medical needs in the United States, Canada, and Europe. Theratechnologies Inc. (NASDAQ:THTX) primarily specializes in the treatments for HIV-1, breast cancer, and ovarian cancer. Theratechnologies Inc. (NASDAQ:THTX) is one of the top low price pharma stocks to buy.
On October 13, Theratechnologies Inc. (NASDAQ:THTX) reported a Q3 revenue of $20.81 million, up 16.6% year-over-year, beating market estimates by $0.07 million. There was a 19% revenue growth in the North American market. Given the elevation in revenue and the relatively smaller increase in expenses in Q3 2022, net loss came in at $7.55 million, down from $9.51 million in the prior year quarter. Theratechnologies Inc. (NASDAQ:THTX) also reiterated its revenue guidance for the full-year 2022, expecting it to be in the range of $79 million to $82 million, versus a consensus of $79.49 million. The growth of the commercial portfolio is forecasted to be 13%-17% higher as compared to the 2021 fiscal year.
Theratechnologies Inc. (NASDAQ:THTX) announced on October 3 that the United States Food and Drug Administration authorized Trogarzo for administration by intravenous push, a method by which the undiluted medication is “pushed” by syringe for faster administration into the body’s circulation.
According to Insider Monkey’s data, Theratechnologies Inc. (NASDAQ:THTX) was part of 4 hedge fund portfolios at the end of Q2 2022, compared to 6 funds in the prior quarter. Guy Levy’s Soleus Capital is the leading position holder in the company, with 7.82 million shares worth $17.75 million.
8. Alimera Sciences, Inc. (NASDAQ:ALIM)
Number of Hedge Fund Holders: 5
Share Price as of October 17: $5.43
Alimera Sciences, Inc. (NASDAQ:ALIM) is a Georgia-based pharmaceutical company engaged in the development and commercialization of ophthalmic pharmaceuticals in the United States and internationally. On October 6, Alimera Sciences, Inc. (NASDAQ:ALIM) announced that a post-hoc analysis from a Phase 4 study indicated that median treatment frequency in diabetic macular edema patients treated with its therapy Iluvien 0.19 mg was lower than from patients on other regimens. Alimera Sciences, Inc. (NASDAQ:ALIM), trading at under $6 per share as of October 17, is one of the best low price pharma stocks to buy now.
H.C. Wainwright analyst Yi Chen on July 28 raised the price target on Alimera Sciences, Inc. (NASDAQ:ALIM) to $9 from $8 and reiterated a Buy rating on the shares. The analyst cited the company’s “solid” sales growth in Q2 2022 for the target raise.
According to Insider Monkey’s data, 5 hedge funds held stakes worth $2.90 million in Alimera Sciences, Inc. (NASDAQ:ALIM) at the end of the second quarter of 2022, compared to 3 funds in the prior quarter worth $1.82 million. William Leland Edwards’ Palo Alto Investors is the biggest position holder in the company, with 200,919 shares valued at $1.09 million.
7. Alpha Teknova, Inc. (NASDAQ:TKNO)
Number of Hedge Fund Holders: 6
Share Price as of October 17: $3.23
Alpha Teknova, Inc. (NASDAQ:TKNO) was founded in 1996 and is headquartered in Hollister, California. The company provides critical reagents for the life sciences market in the United States and internationally, enabling the discovery, development, and production of biopharmaceutical products, including drug therapies, novel vaccines, and molecular diagnostics.
On October 13, Alpha Teknova disclosed creating an Early Access Program for two new products currently in development to streamline downstream gene therapy process development, including an Anion Exchange Buffer Screening Kit and a Functional Reporter Assay. Alpha Teknova, Inc. (NASDAQ:TKNO) is one of the top low price pharma stocks to monitor.
Stephens analyst Jacob Johnson on August 11 reaffirmed an Overweight rating on Alpha Teknova, Inc. (NASDAQ:TKNO) but slashed the price target on the shares to $15 from $22. While Alpha Teknova, Inc. (NASDAQ:TKNO)’s Q2 revenue and adjusted EBITDA outperformed expectations, the company retracted FY22 revenue expectations on the back of delayed orders from a group of CGT customers, implying that second half revenues will be considerably below the first half, the analyst told investors in a research note. The analyst remains bullish on the long-term outlook for cell and gene therapy and said that Alpha Teknova, Inc. (NASDAQ:TKNO) is a solid derivative consumables play in the end-market.
Among the hedge funds tracked by Insider Monkey, 6 funds were long Alpha Teknova, Inc. (NASDAQ:TKNO) at the end of Q2 2022, compared to 7 funds in the last quarter. Israel Englander’s Millennium Management is the leading stakeholder of the company, with 656,981 shares worth $5.5 million.
6. Grifols, S.A. (NASDAQ:GRFS)
Number of Hedge Fund Holders: 12
Share Price as of October 17: $6.14
Grifols, S.A. (NASDAQ:GRFS) was founded in 1940 and is headquartered in Barcelona, Spain. The company engages in the procurement, manufacture, and sale of therapeutic products, operating through Bioscience, Hospital, Diagnostic, Bio Supplies, and Others segments. On September 7, Grifols, S.A. (NASDAQ:GRFS) announced a long-term agreement with Canada’s national blood authority to increase the availability of immunoglobulin medicines and plasma-protein therapies in the country. The plasma sourcing capacity in Canada will expand to provide 2.4 million grams of immunoglobulin medicine annually by 2026.
On October 7, Morgan Stanley analyst Sarita Kapila maintained an Equal Weight rating on Grifols, S.A. (NASDAQ:GRFS) and trimmed the price target on the shares to EUR 13 from EUR 20.
According to Insider Monkey’s data, 12 hedge funds were bullish on Grifols, S.A. (NASDAQ:GRFS) at the end of Q2 2022, compared to 10 funds in the preceding quarter. Israel Englander’s Millennium Management is the leading position holder in the company, with 7.4 million shares worth $88.4 million.
In addition to Eli Lilly and Company (NYSE:LLY), Pfizer Inc. (NYSE:PFE), and Moderna, Inc. (NASDAQ:MRNA), smart investors are monitoring Grifols, S.A. (NASDAQ:GRFS) in the pharma sector.
5. Haleon plc (NYSE:HLN)
Number of Hedge Fund Holders: N/A
Share Price as of October 17: $6.04
Haleon plc (NYSE:HLN) was incorporated in 2021 and is headquartered in Brentford, the United Kingdom. The company engages in the research and development, manufacture, and sale of consumer healthcare products including therapeutic oral health, pain relief, respiratory health, and digestive health products, as well as vitamins, minerals, and supplements. Its portfolio of brands include Panadol, Voltaren, Advil, Otrivin, Theraflu, Sensodyne, Polident, Parodontax, and Centrum. Haleon plc (NYSE:HLN) is one of the best low pharma stocks to invest in.
On September 28, Argus analyst Taylor Conrad initiated coverage of Haleon plc (NYSE:HLN) with a Hold rating. The company is trying to benefit from emerging secular trends, such as the heightening popularity of preventive medicine and the rising shift from prescription to over-the-counter medications, the analyst told investors in a research note. However, the analyst added that while Haleon plc (NYSE:HLN) should be a beneficiary of these tailwinds, its “fair valuation” and the easy barriers to entry for off-patent generic drugs result in her neutral stance.
4. Harrow Health, Inc. (NASDAQ:HROW)
Number of Hedge Fund Holders: 13
Share Price as of October 17: $12.05
Harrow Health, Inc. (NASDAQ:HROW) is a California-based ophthalmic-focused healthcare company that owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business. The company also holds equity interests in multiple clinical-stage pharmaceutical companies. Harrow Health, Inc. (NASDAQ:HROW) is one of the top low price pharma stocks to invest in.
On October 3, Lake Street analyst Brooks O’Neil said he is optimistic about Harrow Health, Inc. (NASDAQ:HROW), as “last week was big” with the company announcing the availability of Fortisite and FDA approval of AMP-100, now branded as Iheezo. He believes there is “a big market” for Fortisite, a compounded antibiotic formulation that can be used to treat eye infections, and expects the drug to be priced at over $100 per bottle. Similarly, the analyst noted that Iheezo has a “very big market” and thinks the price tag for a single dose can be in the range of $500. O’Neil, who would “definitely encourage investors to buy this stock now,” reiterated a Buy rating and a $17 price target on Harrow Health, Inc. (NASDAQ:HROW) shares.
According to Insider Monkey’s data, 13 hedge funds were long Harrow Health, Inc. (NASDAQ:HROW) at the end of June 2022, with collective stakes worth $78.2 million, compared to 13 funds in the prior quarter worth $50.2 million.
Here is what SRK Capital has to say about Harrow Health, Inc. (NASDAQ:HROW) in its Q2 2022 investor letter:
“I have written about Harrow Health in my previous two letters to you, but I find it necessary to continue to explain my thought process in order to convey my conviction in the company. During periods of negative performance, I believe it is more vital than ever that our partners understand my thought process in order for you to adequately discern what it is that I do as your manager. HROW is our largest position, our largest detractor year to date, and the opportunity I am most excited about over the next six months.
Harrow Health is an ophthalmology focused healthcare company. The core business, ImprimisRx, is a compounding pharmacy that customizes medications to the needs of eye care physicians and their patients. It is estimated that north of 90% of ophthalmologists and optometrists use compounded formulations in their practice. Physicians choose to work with ImprimisRx because they are the largest and most trusted compounding pharmacy in the eye care market and have achieved this by solving pain points for physicians and their patients, where others could not satisfy their needs…” (Click here to see the full text)
3. Veru Inc. (NASDAQ:VERU)
Number of Hedge Fund Holders: 13
Share Price as of October 17: $10.86
Veru Inc. (NASDAQ:VERU) is a Florida-based oncology biopharmaceutical company that focuses on developing medicines for the management of cancer. On September 20, Oppenheimer analyst Leland Gershell noted that the date of the FDA Advisory Committee meeting to discuss Veru Inc. (NASDAQ:VERU)’s sabizabulin was postponed to November 9 from October 6. From his discussion with Veru Inc. (NASDAQ:VERU)’s management, the analyst told investors that the FDA’s meeting was delayed to allow the agency additional time to review the relevant material, including clinical trial results. While this delays the potential start of U.S. sales to at least November, his optimism for Emergency Use Authorization “remains unchanged.” The analyst has an Outperform rating on Veru Inc. (NASDAQ:VERU) shares.
According to Insider Monkey’s Q2 data, 13 hedge funds were long Veru Inc. (NASDAQ:VERU), up from 9 funds in the prior quarter. Peter Kolchinsky’s RA Capital Management is the leading stakeholder of the company, with 7.90 million shares worth $89.2 million.
2. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)
Number of Hedge Fund Holders: 19
Share Price as of October 17: $10.09
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a Massachusetts-based healthcare company, focused on the development and commercialization of gastrointestinal products. The company uses its free cash flow to pay off debt and buy back stock. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is one of the premier low price pharma stocks to buy now.
Capital One analyst Tim Chiang on September 2 initiated coverage of Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) with an Overweight rating and a $15 price target.
According to Insider Monkey’s second quarter database, 19 hedge funds held stakes worth $329.7 million, compared to 21 funds in the last quarter worth $367 million. Alex Denner’s Sarissa Capital Management is the largest stakeholder of the company, with 16.4 million shares valued at $189 million.
1. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 35
Share Price as of October 17: $7.95
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is an Israel-based pharmaceutical company that develops, manufactures, and distributes generic medicines, specialty medicines, and biopharmaceutical products in North America, Europe, and internationally. On October 7, Teva Pharmaceutical Industries Limited (NYSE:TEVA), the biggest supplier of the generic version of Adderall, announced that it expects shortages of the medication to continue for another two to three months. Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the leading low price pharma stocks.
On August 5, BofA analyst Jason Gerberry upgraded Teva Pharmaceutical Industries Limited (NYSE:TEVA) to Buy from Neutral with a price target of $13, up from $10. The company is making significant progress towards wrapping up its litigation overhangs and concluding opioid settlements, which should be enough to put Teva Pharmaceutical Industries Limited (NYSE:TEVA) on the path to EBITDA growth, the analyst told investors in a research note. He added that Teva Pharmaceutical Industries Limited (NYSE:TEVA) offers a “solid” new product cycle pipeline in 2023-2024.
According to Insider Monkey’s data, 35 hedge funds were long Teva Pharmaceutical Industries Limited (NYSE:TEVA) at the end of Q2 2022, up from 26 funds in the prior quarter. David Abrams’ Abrams Capital Management is the largest stakeholder of the company, with more than 24 million shares worth nearly $181 million.
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Disclosure: None. 10 Best Low Price Pharma Stocks To Buy Now is originally published on Insider Monkey.
