10 Cheap Pharmaceutical Stocks to Buy According to Analysts

8. Novartis AG (NYSE:NVS)

Price Target Upside: 17.30%  

Novartis AG (NYSE:NVS) is a Swiss global healthcare company that develops prescription medicines across multiple therapeutic areas, including cardiovascular, immunology, neuroscience, oncology, and ophthalmology.

In a deal valued at much to $3.1 billion, Novartis AG (NYSE:NVS) announced on February 11, 2025, that it would repurchase Anthos Therapeutics and recover the rights to abelacimab, which is a drug that may be a breakthrough in the prevention of blood clots and strokes. The medicine was first licensed from Novartis by Blackstone Life Sciences in 2019, and the company invested $250 million in clinical trials to support its development. To acquire complete control, the business is paying $925 million upfront, with potential further payments contingent on future milestones.

With net income rising 26% to $3.93 billion in Q4 2024, Novartis AG (NYSE:NVS) exceeded Wall Street’s forecasts. The business now anticipates sales growth of at least 5% until 2029. With its emphasis on pharmaceuticals, the company also achieved a record-high free cash flow of $16.3 billion, up 24%. As one of the cheap pharmaceutical stocks with strong financials, the company continues to reward investors by raising its dividend by 6% to CHF 3.50 per share, marking 28 years of consecutive increases, and expects to repurchase $5.4 billion worth of shares in 2025.

In the third quarter, 24 hedge funds owned shares in Novartis AG (NYSE:NVS), up from 30 funds in the previous quarter, according to Insider Monkey’s database. The largest shareholder in the business was Renaissance Technologies, owned by Jim Simons, with 2.30 million shares valued at $264.6 million.