5 Most Undervalued Pharma Stocks To Buy According To Hedge Funds

In this article, we discuss 5 most undervalued pharma stocks to buy according to hedge funds. If you want to see more stocks in this selection, check out 12 Most Undervalued Pharma Stocks To Buy According To Hedge Funds. 

5. GSK plc (NYSE:GSK)

Number of Hedge Fund Holders: 37

P/E Ratio as of January 23: 13.06

GSK plc (NYSE:GSK) was founded in 1715 and is headquartered in Brentford, the United Kingdom. The company focuses on the discovery, development, manufacture, and marketing of pharmaceutical products, vaccines, over-the-counter medicines, and health-related consumer products worldwide. It operates through four segments – Pharmaceuticals, Pharmaceuticals R&D, Vaccines, and Consumer Healthcare. GSK plc (NYSE:GSK) is one of the most undervalued pharma stocks to monitor. 

On January 5, China-based WuXi Biologics announced that it has signed an agreement with GSK plc (NYSE:GSK), where the latter will receive exclusive licenses for up to four T cell engaging (TCE) antibodies. GSK plc (NYSE:GSK) will also have the option to team up with WuXi for three additional bi/multi-specific TCE antibodies. Per the agreement, WuXi is also eligible for tiered royalties on net sales.

According to Insider Monkey’s Q3 data, GSK plc (NYSE:GSK) was part of 37 hedge fund portfolios, compared to 34 in the prior quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with more than 12 million shares worth $358.2 million. 

Ariel Investment made the following comment about GSK plc (NYSE:GSK) in its Q3 2022 investor letter:

“By comparison, health care leader GSK plc (NYSE:GSK) was the largest detractor from performance in the quarter. Investors are concerned about legal liabilities associated with its antacid drug Zantac. While it is impossible to know the outcome with certainty, our preliminary assessment suggests that the decline in market capitalization exceeds the likely financial impact on the company.”