In this article, we will be taking a look at the 5 Most Undervalued Pharma Stocks to Invest In. If you wish to see the full list, visit 11 Most Undervalued Pharma Stocks to Invest In.
5. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)
PE Ratio: 11.63
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is one of the most undervalued pharma stocks.
TheFly reported on May 11 that Piper Sandler reduced its price target on AMPH from $25 to $21 while maintaining a Neutral stance on the stock following the company’s quarterly results. The firm noted that AMPH has several complex generic products and branded opportunities in its pipeline, but there is limited clarity on when these programs will begin to generate meaningful results. This lack of visibility into the timing of potential pipeline catalysts contributed to the revised outlook.
Earlier on May 7, Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) released its financial results for the first quarter ended March 31, 2026. The company posted net revenues of $171.2 million for the period. Reported GAAP net income came in at $6.4 million, translating to earnings of $0.14 per share. On an adjusted non-GAAP basis, net income was $19.5 million, or $0.42 per share.
The results reflect performance across its portfolio of technically complex generic and proprietary injectable, inhalation, and intranasal products. The figures provide a snapshot of profitability under both standard accounting measures and adjusted metrics that exclude certain items. These quarterly outcomes highlight the company’s financial position and operational results for the period, offering investors a view of revenue generation and earnings performance during the first quarter of fiscal 2026.
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) is a biopharmaceutical company that develops and markets generic and proprietary injectable, inhalation, and intranasal products. It focuses on complex, hard-to-make medications used in hospitals and clinical settings.
4. Grifols, S.A. (NASDAQ:GRFS)
PE Ratio: 11.24
Grifols, S.A. (NASDAQ:GRFS) is among the most undervalued stocks.
TheFly reported on May 12 that Deutsche Bank reduced its price target on GRFS from €11 to €10 while reaffirming a Hold rating on the stock.
Earlier on May 7, Grifols, S.A. (NASDAQ:GRFS) reported its results for the first quarter of 2026. The company recorded total revenue of €1.7 billion, reflecting a 3.3% increase on a constant currency basis compared with the prior year. Growth was primarily driven by its Biopharma segment, which advanced 6.8% in constant currency, supported by strong demand for immunoglobulin products. Performance was further aided by the rollout of Biotest’s next-generation IVIG Yimmugo in the U.S. and continued momentum from Gamunex in key U.S. and European markets. These gains were partly offset by weaker pricing in albumin in China and tougher comparisons in Alpha-1 and Specialty Proteins.
The corporation’s Adjusted EBITDA rose to €381 million, up 0.8% in constant currency, with a stable margin of 22.4%. Net profit reached €73 million, representing a 21.9% year-over-year increase. Free cash flow before M&A improved to negative €8 million, while leverage stood at 4.3x and liquidity totaled €1.573 billion, supported by recent refinancing actions that extended maturities and strengthened financial flexibility.
Grifols, S.A. (NASDAQ:GRFS) is a global healthcare company specializing in plasma-derived medicines. Founded in Barcelona in 1909, it provides biopharmaceutical products and medical services in over 110 countries.
3. Novo Nordisk A/S (NYSE:NVO)
PE Ratio: 10.66
Novo Nordisk A/S (NYSE:NVO) is one of the most undervalued stocks to invest in.
TheFly reported on May 27 that NVO announced that it will present new clinical findings from its cardiometabolic portfolio at the 2026 Scientific Sessions of the American Diabetes Association in New Orleans, scheduled for June 5–8, 2026. The company plans to showcase results from its Phase 3 REIMAGINE program evaluating investigational CagriSema on blood sugar control and weight reduction across multiple type 2 diabetes treatment backgrounds. In total, 40 scientific abstracts will be presented at the meeting. This includes Phase 2 data on the safety and efficacy of once-weekly injectable zenagamtide, along with updated clinical evidence for Ozempic and Wegovy, further expanding research on semaglutide across several cardiometabolic indications.
Separately, earlier on May 12, Novo Nordisk A/S (NYSE:NVO) presented new clinical and real-world evidence for Wegovy (semaglutide 2.4 mg and 7.2 mg) at the European Congress on Obesity 2026 in Istanbul. The data showed consistent and significant weight reduction in women with obesity across different stages of reproductive life, including premenopause, perimenopause, menopause, and postmenopause. Findings were drawn from the STEP UP trial, the SELECT cardiovascular outcomes study, and a large real-world analysis. Results also indicated improvements in waist circumference, body composition, cardiovascular risk reduction, and quality of life measures such as migraine, depression, and menopause-related symptoms, reinforcing semaglutide’s broader cardiometabolic benefits.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company focused on diabetes, obesity, and rare bleeding disorders. Headquartered in Denmark, it is one of the world’s largest insulin producers.
2. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)
PE Ratio: 5.81
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is one of the most undervalued stocks to invest in.
TheFly reported on May 27 that IRWD reported that the U.S. Food and Drug Administration expanded the approved use of Linzess to include pediatric patients as young as 2 years old who suffer from functional constipation. Previously, the therapy was authorized for children aged 6 years and older with the same condition. With this updated approval, Linzess can now be prescribed for patients between 2 and 5 years of age, broadening its treatment reach. The company also noted that Linzess remains the only FDA-approved prescription medication available for pediatric functional constipation, reinforcing its position as a key therapy option in this patient population.
Moreover, on May 7, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) reported its financial results for the first quarter of 2026, highlighting improved performance across key metrics. Total revenue reached $106.5 million, compared with $41.1 million in the same period a year earlier. Growth was primarily driven by Ironwood’s share of U.S. LINZESS net sales profits, alongside modest royalties and other income. The company also reported a significant reduction in total expenses to $33.9 million from $70.3 million year over year. GAAP net income was $40.8 million, or $0.25 per share, reversing a prior-year loss. Adjusted EBITDA rose to $76.7 million, compared to a negative result in the prior year period. Cash and liquidity positions also improved modestly.
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) is a biopharmaceutical company focused on developing treatments for gastrointestinal diseases and rare disorders. It is best known for its drug LINZESS.
1. HUTCHMED (China) Limited (NASDAQ:HCM)
PE Ratio: 4.24
HUTCHMED (China) Limited (NASDAQ:HCM) is one of the most undervalued pharma stocks.
TheFly reported on May 28 that Morgan Stanley upgraded HCM to Equal Weight from Underweight and set a new price target of $13.60, slightly below the prior $13.75 level. The firm noted that China biotech valuations have reset to more attractive entry levels, improving the sector’s risk-reward profile. It also pointed to FY26 guidance that continues to suggest solid growth in innovator revenue, alongside ongoing strength in outbound licensing activity.
On May 21, HUTCHMED (China) Limited (NASDAQ:HCM) and Innovent Biologics announced that China’s National Medical Products Administration (NMPA) approved their New Drug Application for the combination therapy of Elunate and Tyvyt. The approval covers the treatment of patients with locally advanced or metastatic renal cell carcinoma who have previously been treated with vascular endothelial growth factor receptor tyrosine kinase inhibitors and have not received PD-1 or PD-L1 inhibitor therapy in the first-line setting.
This regulatory decision expands the clinical use of the combination regimen in a more defined patient population with prior treatment exposure. The update marks an important step in advancing the availability of the dual therapy option within China’s oncology treatment landscape.
HUTCHMED (China) Limited (NASDAQ:HCM) is a biopharmaceutical company focused on developing targeted cancer therapies and immunotherapies. Founded in 2000 and based in Hong Kong, it has a fully integrated R&D platform supported by around 900 scientists.
While we acknowledge the potential of HCM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HCM and that has 100x upside potential, check out our report about the cheapest AI stock.
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