10 Cheap Pharmaceutical Stocks to Buy According to Short Sellers

7. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)

Short Interest as % of  Shares Outstanding: 0.36%

Number of Hedge Fund Investors In Q2 2024: 18

ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) is a small Minnesota based firm that sells generics as well as branded products. Its lead product is Cortrophin gel, which accounts for the lion’s share of ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)’s revenue. This is a diversified medicine that helps patients with rare and other diseases such as arthritis and eye diseases. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) has also been following the trend of growing its pharma business through acquisitions, and it has agreed to acquire an ophthalmology company with $105 million in 2024 projected revenue through branded products. The deal could boost ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)’s income statement, and it could diversify its product portfolio, which remains heavily dependent on Cortrophin.

ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)’s management shared key details during the Q2 2024 earnings call about expanding its production capacity, which is another key driver of pharma valuations:

“We have launched three new products so far in the third quarter and have a number of products pending approval that we expect to launch in the second half. We made substantial progress on bringing online the significant capacity expansion at our New Jersey site and believe all 15 new manufacturing suites and the new QC lab will be fully operational in the second half of 2024. The New Jersey site expansion will support the future growth of our generics business. Revenue for established brands was $14.9 million during the quarter, a decrease of 49% from the prior year period. The performance was anticipated and in line with our expectations and guidance. As a reminder, we noted on the first quarter call in May that we did not expect the tailwinds arising from competitor supply dynamics to persist beyond the first quarter.”