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.
READ ALSO: 7 Most Undervalued Small Cap Stocks to Buy Right Now AND 7 Most Undervalued Retail Stocks to Invest In Now.
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 (NASDAQ:VALN) 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 (NASDAQ:VALN) 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 (NASDAQ:VALN) 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. (NASDAQ:TBPH) 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. (NASDAQ:TBPH) 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. (NASDAQ:TBPH) 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’ (NASDAQ:HALO) 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. (NASDAQ:HALO), 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. (NASDAQ:HALO), along with potential future milestone payments. In addition, Halozyme Therapeutics, Inc. (NASDAQ:HALO) will be entitled to royalties on net sales of products developed using the Hypercon™ technology.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) 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.
While we acknowledge the potential of HALO 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 HALO and that has 100x upside potential, check out our report about the cheapest AI stock.
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