10 Cheap Pharmaceutical Stocks to Buy According to Short Sellers

5. HUTCHMED (China) Limited (NASDAQ:HCM)

Short Interest as % of  Shares Outstanding: 0.28%

Number of Hedge Fund Investors In Q2 2024: 7

HUTCHMED (China) Limited (NASDAQ:HCM) is a Hong Kong based pharma company that focuses primarily on developing treatments for cancer and tumors. This means that it is an R&D intensive business that has to wait for the revenue to flow in – a trend that’s visible in HUTCHMED (China) Limited (NASDAQ:HCM)’s financial performance. Between the years 2020 to 2023, 2023 was the only one where HUTCHMED (China) Limited (NASDAQ:HCM) generated a profit which sat at $100.7 million. This profit was accompanied by a strong 96.7% annual growth in the firm’s revenue. Key to HUTCHMED (China) Limited (NASDAQ:HCM)’s growth profile has been its FRUZAQLA drug for colon cancer and its partnership with Japanese cancer drug firm Takeda. Takeda has agreed to pay HUTCHMED (China) Limited (NASDAQ:HCM) a total of $400 million in upfront payments for FRUZAQLA, and the $280 million payout out of this in 2023 drove the firm’s revenue. Future payments could mean tailwinds for the stock, while any regulatory hurdles or untoward news particularly for the colon cancer drug could spell trouble.