In this article, we will look at the 8 Most Undervalued Biotech Stocks to Buy Right Now.
On April 13, Tom Lee, Fundstrat’s head of research, appeared on CNBC’s ‘Power Lunch’ to talk about his outlook on equities, what to expect in a wartime economy, and more. He said that the stocks are holding up because the economy is actually doing better in the face of this war. While this sounds counterintuitive, the defense spending going from $30 billion a month to probably $60 billion a month is quite stimulative for the economy. The $20 rise in oil is also only adding around $12 billion a month to the household burden, and therefore, on a net basis, the war is helping earnings right now, according to Lee.
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He further stated that while nobody wants the US to be in a war, and right now it is caught in a fog of war, one of the things we have to remember is that going back to WWII, the stock market bottomed in May 1942, five months after the US entered the war but before any US troops were even on the ground, either in the Pacific or Europe. Therefore, according to Lee, the market does have a really good way of discounting outcomes, and he thinks the reason it is going up is that we are going to end up with a favorable outcome.
With these broader market trends in view, let’s look at the most undervalued biotech stocks to buy right now.
Our Methodology
We used the Finviz stock screener to make a list of biotech stocks with a forward P/E below 15 and picked the top 8 with the highest number of hedge fund holders, as of Q4 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Note: All data was recorded on April 17.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
8 Most Undervalued Biotech Stocks to Buy Right Now
8. Valneva SE (NASDAQ:VALN)
Valneva SE (NASDAQ:VALN) is one of the most undervalued biotech stocks to buy right now. Guggenheim cut the price target on Valneva SE (NASDAQ:VALN) to $11 from $13 on April 16, reiterating a Buy rating on the shares. The firm adjusted estimates on the stock as part of a fiscal Q1 earnings preview for the commercial stage companies under its coverage in the biotechnology sector.
In its audited consolidated financial results for the year ended December 31, 2025, Valneva SE reported total revenues of €174.7 million, in line with guidance, including €157.9 million in product sales. The company also announced a strong year-end cash position of €109.7 million, with enhanced financial flexibility following successful debt refinancing and a 21% reduction in operating cash burn.
Valneva SE also reiterated its fiscal year 2026 outlook and financial guidance, reporting that the first Phase 3 data readout for Lyme disease vaccine candidate (VLA15) is expected in the first half of 2026. Regulatory submissions are anticipated to follow as planned by Pfizer, subject to positive results.
Valneva SE is a specialty vaccine company involved in the development, manufacture, and commercialization of prophylactic vaccines for infectious diseases, addressing unmet medical needs. The company currently offers three proprietary travel vaccines: IXIARO, DUKORAL, and IXCHIQ.
7. Theravance Biopharma, Inc. (NASDAQ:TBPH)
Theravance Biopharma, Inc. (NASDAQ:TBPH) is one of the most undervalued biotech stocks to buy right now. B. Riley lifted the price target on Theravance Biopharma, Inc. (NASDAQ:TBPH) to $17 from $14 on April 7, reiterating a Neutral rating on the shares. The firm told investors that the final generic settlement with MannKind Corporation locks exclusivity through April 2039, “removing the last overhang on a clean single-asset story”.
In its financial and operational results for fiscal Q4 and full year 2025, Theravance Biopharma, Inc. stated that the company ended the year “on a positive note from a financial perspective”, attaining “another record quarter of non-GAAP profitability, hitting a new all-time high for YUPELRI® brand-level profitability, and reaching $75 million in key sales-based milestones.” Management stated that the results highlight the durability and strength of the company’s commercial asset, YUPELRI®, as well as the strength of its balance sheet. Theravance Biopharma, Inc. also reported that the full-year 2025 TRELEGY net sales, reported by GSK, were $3.9 billion, up 12% year-over-year, which triggered a $50 million milestone payment.
Theravance Biopharma, Inc. is a biopharmaceutical company involved in the discovery, research, development, and commercialization of respiratory medicines. The company’s operations are divided into the following geographical segments: the U.S. and Europe.
6. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the most undervalued biotech stocks to buy right now. Halozyme Therapeutics, Inc. (NASDAQ:HALO) announced on April 7 that its wholly-owned subsidiary, Halozyme Hypercon, Inc., entered into a global exclusive collaboration and license agreement with Vertex Pharmaceuticals Incorporated. According to the collaboration, Vertex has licensed Halozyme Therapeutics’ Hypercon™ technology for use in up to three drug targets. Management stated that Hypercon™ is an innovative microparticle technology allowing for hyperconcentration of drugs and biologics, reducing injection volume for the same dosage and enabling convenient, at-home administration.
Helen Torley, President and Chief Executive Officer of Halozyme Therapeutics, Inc., stated that the collaboration highlights the potential and versatility of the company’s Hypercon technology to “enable small volume, patient-delivered next‑generation biologics”.
The terms of the exclusive agreement state that Vertex will make a $15 million upfront payment to Halozyme Therapeutics, Inc., along with potential future milestone payments. In addition, Halozyme Therapeutics, Inc. will be entitled to royalties on net sales of products developed using the Hypercon™ technology.
Halozyme Therapeutics, Inc. is a biopharmaceutical technology platform company that develops, manufactures, and commercializes drug-device combination products through advanced auto-injector technology. They offer commercial or functional benefits, including increased patient comfort and adherence, and enhanced tolerability and convenience.
5. ADMA Biologics Inc. (NASDAQ:ADMA)
ADMA Biologics Inc. (NASDAQ:ADMA) is one of the most undervalued biotech stocks to buy right now. Cantor Fitzgerald downgraded ADMA Biologics Inc. (NASDAQ:ADMA) to Neutral from Overweight on March 26, without assigning a price target. The firm stated that it spoke with a number of investors after a short report’s claim that ADMA Biologics Inc. is boosting Asceniv revenues through channel stuffing, and stated that investors are disappointed over the company’s response and lack of direct communication after the report. The firm further contended that although the company put out a statement, they were “hoping to have more specific feedback addressing the direct claims in the report”. The firm also cited the lack of clarity and concerns associated with the increased days’ sales outstanding and accounts receivable for the downgrade.
ADMA Biologics Inc. issued a statement refuting the allegations by Culper Research on March 27, calling them “unsubstantiated, misleading, and inaccurate”. The company did so to “alleviate confusion in the marketplace” regarding the company’s operations and business practices.
ADMA Biologics Inc. is a biopharmaceutical company that manufactures, markets, and develops specialty plasma-derived biologics. Its operations are divided into the following business segments: ADMA BioManufacturing and Plasma Collection Center.
4. Royalty Pharma Plc (NASDAQ:RPRX)
Royalty Pharma Plc (NASDAQ:RPRX) is one of the most undervalued biotech stocks to buy right now. Royalty Pharma Plc (NASDAQ:RPRX) announced on April 17 that its board of directors approved the payment of a dividend for the second quarter of 2026 of $0.235 per Class A ordinary share. Management stated that the dividend will be paid on June 10, 2026, to shareholders of record at the close of business on May 15, 2026. In a separate development, Morgan Stanley lifted the price target on Royalty Pharma Plc to $63 from $61 on April 10, reiterating an Overweight rating on the shares and adjusting models among the stocks under its biopharma coverage for IQVIA trends as well as intra-quarter updates ahead of the group’s fiscal Q1 earnings reports.
Royalty Pharma Plc also announced on March 30 a research and development (R&D) co-funding agreement with Johnson & Johnson for a total of $500 million in 2026 and 2027, aimed at advancing the development of JNJ-4804, an investigational medicine for autoimmune diseases.
Royalty Pharma Plc funds innovation in the biopharmaceutical industry and buys biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies. The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators.
3. Incyte Corporation (NASDAQ:INCY)
Incyte Corporation (NASDAQ:INCY) is one of the most undervalued biotech stocks to buy right now. RBC Capital raised the price target on Incyte Corporation (NASDAQ:INCY) to $95 from $92 on April 7, reiterating a Sector Perform rating on the shares. The rating update came as part of a broader research note previewing the fiscal Q1 results in the Biotech sector, with the firm telling investors in the research note that factors such as seasonal headwinds around gross/net, reimbursement resets, and fewer selling days may be exacerbated in fiscal Q1 by weather impact. This holds especially true for launching and in-clinic products. However, RBC Capital added that the robust return of M&A, along with clarity on limited tariff/Most Favored Nation drug pricing impacts, may prove helpful in offsetting both this and broader macro volatility while keeping sector perceptions favorable.
For additional perspective, in its financial results for fiscal Q4 and the full year ended December 31, 2025, Incyte Corporation reported a total revenue of $1.51 billion for the quarter, up 28% compared to the prior year period. Management attributed the growth to an increase in total net product revenue and milestone and contract revenue. Total revenue for the full year reached $5.14 billion, reflecting a growth of 21% compared to the prior year period and primarily driven by growth in the total net product revenue and milestone and contract revenue.
Incyte Corporation is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics, focusing on oncology, hematology, inflammation, and autoimmunity therapeutic areas.
2. Jazz Pharmaceuticals (NASDAQ:JAZZ)
Jazz Pharmaceuticals (NASDAQ:JAZZ) is one of the most undervalued biotech stocks to buy right now. On April 10, Raymond James resumed coverage of Jazz Pharmaceuticals (NASDAQ:JAZZ) with an Outperform rating and set a price target of $227. The firm told investors that the Jazz story has travelled beyond the narrative of “it looks inexpensive/fairly valued, but where can I get upside?” since adding greater visibility to the tail value of the Epidiolex franchise and zanidatamab delivering “highly competitive” data in gastroesophageal adenocarcinoma.
Jazz Pharmaceuticals also received a rating update from Piper Sandler on March 19, with the firm lifting the price target on the stock to $232 from $219 while maintaining an Overweight rating on the shares. The firm stated that moving further into 2026, it continues to view the company as undervalued at a current EV/2026E EBITDA of only seven times in the context of a company that has strong visibility into double-digit overall top-line growth starting in 2027. Piper added that the competitive dynamics associated with the oxybate franchise are not lost on it, but it does not envision said dynamics throwing a wrench into its thinking regarding Jazz Pharmaceuticals’ (NASDAQ:JAZZ) overall growth profile.
Jazz Pharmaceuticals develops medicines for serious diseases. Its primary marketed products include Xywav, Xyrem oral solution, Epidiolex oral solution, Rylaze, Zepzelca, Defitelio, and Vyxeos liposome for injection. These medicines treat excess daytime sleepiness (EDS) in narcolepsy patients seven years of age or older, tepatic veno-occlusive disease (VOD), and other ailments.
1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is one of the most undervalued biotech stocks to buy right now. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) announced on April 13 a collaboration with Telix Pharmaceuticals Limited aimed at the joint development and commercialization of next-generation radiopharmaceutical therapies. Management stated that the collaboration brings together Regeneron Pharmaceuticals’ (NASDAQ:REGN) biologics expertise, including bispecific antibody discovery, with Telix’s radiopharmaceutical development platform, global manufacturing capabilities, and supply chain infrastructure. It further reported that the collaboration will include several solid tumor targets from Regeneron Pharmaceuticals’ (NASDAQ:REGN) portfolio of antibodies, generated from VelocImmune® mice. The agreement also aims at developing radio-diagnostics to support patient selection and treatment response assessment, in line with the two companies’ shared commitment to precision oncology.
The terms of the agreement state that Telix will receive an upfront cash payment of $40 million from Regeneron Pharmaceuticals, Inc. for access to its radiopharmaceutical manufacturing platform for four initial therapeutic programs. The latter will have the option to expand to include four additional programs with additional upfront payments.
Regeneron Pharmaceuticals, Inc. is a pharmaceutical company that develops, discovers, and commercializes therapies for several diseases, including cancer, eye disorders, and allergic conditions. It has relied on two primary products to drive top-line growth in the past years: Dupixent and Eylea.
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