In this article, we will look at the 10 Oversold Pharma Stocks to Buy According to Analysts.
On February 20, Emily Field, Head of European Pharma Research at Barclays, appeared on CNBC to discuss the dynamics of the pharmaceutical sector, the impact of US tariffs, and the performance of obesity drugs. She believed the industry may not underperform this year, at least in the first half. However, there are still several questions surrounding the performance of obesity drugs, as major players in the domain have exhibited contrasting previous year performance.
Talking about the tariffs, she said that their materialization poses a big open question for the pharmaceutical sector as some companies assemble their products in the US after manufacturing them abroad. Manufacturing costs are thus pretty low for these companies, which is a significant point to consider when determining the impact of tariffs. She believed that absorbing the additional cost of the tariffs would be very manageable for these companies. The market has reached the tail-end of the earnings season, and the situation hasn’t come up much on earnings calls over this quarter.
We recently talked about what Trump’s tariffs could mean for the healthcare industry in a recently published article on 12 Most Oversold Healthcare Stocks to Buy Now. Here is an excerpt from the article:
“Since more and more companies in the US are looking towards China for deals regarding the next promising molecule, whether in the obesity or cancer space, the impact of tariffs on this ongoing trend has become a subject of significant discussion in the healthcare industry. On February 7, Carlo Rizzuto, Versant Ventures managing director, appeared on CNBC’s ‘Fast Money’ to discuss the impact of tariffs on healthcare. Rizzuto believed that there are two ways in which tariffs could impact the industry. The first would be products innovated in China and brought over to the US or other markets. To understand how the tariffs would affect such trade processes, the industry would have to see how the tariffs are actually structured in the market.
Secondly and more tangibly, China is a massive center for contract research and manufacturing for the US healthcare industry. Therefore, anything that increases that cost is likely to make the market conditions more challenging. The healthcare industry is already under pressure in terms of investor sentiment, and an increase in cost is not going to help its functioning.”
Weight Loss Drugs and the Attention Around Them
Angelica Peebles, CNBC’s Health and Pharma reporter, sat with Eli Lilly’s Chief Scientific Officer to talk about the weight loss sector. From the conversation, she reported that the domain poses opportunity for drugs that are easier to use, such as pills, and medicines that make people lose more weight. Another debate people are having regarding the domain is how much weight loss users need to see on top of what they already have. Drugs delivering around 20% weight loss appear to benefit most of the audience, according to Eli Lilly’s Chief Scientific Officer Dan Skovronsky. He sees more potent drugs that deliver around 25% or more as having a smaller market.
He was further of the opinion that the most exciting thing he has seen in his career as a scientist and physician is how a multitude of diseases can potentially benefit from these weight loss drugs. Right now, their source for this information is the trends they have been seeing in patients’ responses.
With these trends in mind, let’s examine the 10 oversold pharma stocks to buy according to analysts.
A well-stocked pharmacy shelf full of the company’s pharmaceuticals, nutraceuticals, over-the-counter medications, and health care products.
Our Methodology
We used stock screeners to compile a list of pharma stocks that experienced significant declines over the past year. We then selected the 10 stocks with the highest analyst upside potential. We also added the number of hedge fund holders for these stocks, as of Q3 2024. The list is sorted in ascending order of analyst upside potential, as of February 21, 2025.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
10 Oversold Pharma Stocks to Buy According to Analysts
10. Stevanato Group S.p.A. (NYSE:STVN)
Year Perf: -36.88%
Analyst Upside: 35.73%
Number of Hedge Fund Holders: 11
Based in Italy, Stevanato Group S.p.A. (NYSE:STVN) is a manufacturer and distributor that operates in the Biopharmaceutical and Diagnostic Solutions and Engineering segments. It produces and distributes diagnostic solutions, drug containment solutions, and drug delivery systems and is involved in all stages of drug development. Its Engineering segment manages the equipment and technologies developed and provided for pharmaceutical, biotechnology, and diagnostic manufacturing processes. Stevanato Group S.p.A. (NYSE:STVN) operates locally in Europe and globally in the US, Mexico, China, and Brazil.
The company reported a 2% growth in revenue in fiscal Q3 2024 to €277.9 million compared to the same quarter last year. This growth was supported by a 6% growth in the Biopharmaceutical and Diagnostic Solutions (BDS) segment. Stevanato Group S.p.A. (NYSE:STVN) also reported that revenue from high-value solutions rose to 36% of total revenue in fiscal Q3 2024, compared to 32% for the same period last year. This was attributed to higher customer demand for high-performance syringes and other products. The company has maintained its fiscal year 2024 revenue guidance and continues to expect revenue of between €1,090 million and €1,110 million.
Stevanato Group S.p.A. (NYSE:STVN) operates in growing end markets with favorable secular tailwinds, and the company is confident in its strategic direction. It is continually delivering organic growth driven by high-value solutions, which is the central pillar of its long-range construct. It also anticipates increasingly benefiting from its new capacity in Italy and the US, advancing its ramp-up activities and driving profitable growth. In addition, the vial market continues to show positive signs, which is why management is optimistic that as demand stabilizes, Stevanato Group S.p.A.’s (NYSE:STVN) operations will return to historical market volumes and growth rates.
9. Novo Nordisk A/S (NYSE:NVO)
Year Perf: -32.48%
Analyst Upside: 45.60%
Number of Hedge Fund Holders: 61
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
Novo Nordisk A/S (NYSE:NVO) is functioning on strong fundamentals. Fiscal 2024 was a strong year for the company, with sales climbing 25% to $40.6 billion. It also raised its total dividend per share by 21.3% to DKK 11.40, which includes an interim dividend of DKK 3.50 distributed in August. This is the 29th consecutive year of dividend growth at NVO.
Novo Nordisk A/S (NYSE:NVO) is one of the two major pharmaceutical companies competing in the GLP-1 weight loss market, with the other being Eli Lilly. While both companies have approved weight loss medicines leading the market with billions in revenue, Novo Nordisk A/S (NYSE:NVO) is working on a new oral weight loss pill that may transform the market if approved. Novo Nordisk CEO Lars Fruergaard Jørgensen said the company plans to file for regulatory approval for its oral weight loss drug in the United States in the coming months. If the company gains approval, it may be able to launch the drug as early as next year, which is when Eli Lilly also plans the release of its weight loss drug.
Apart from potential optimism surrounding this oral weight loss drug, Novo Nordisk A/S (NYSE:NVO) expects a free cash flow of around DKK 75 to 85 billion in 2025 and sales growth of 16-24% at constant exchange rates. The company ranks ninth on our list of the 10 oversold pharma stocks to buy according to analysts.
ClearBridge Large Cap Growth Strategy stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its Q4 2024 investor letter:
“Similarly, we used a temporary price dislocation caused by disappointing clinical trial results to purchase shares of Novo Nordisk A/S (NYSE:NVO), a Danish-based leader in diabetes and obesity treatments. Novo’s Wegovy semaglutide drug was first to market among the new generation of obesity drugs; however, the company has lost market share to portfolio holding Eli Lilly due to delays in scaling up production volumes and superior weight loss results demonstrated by Lilly’s trizepatide drugs. While the initial market reaction to Novo’s more enhanced CagriSema weight loss treatment was negative, we believe this is a more potent formulation that can better compete with Lilly’s suite. With Novo poised to have a better product portfolio and improved supply position, we find the company’s valuation very attractive given the large secular growth trends behind the diabesity market.”
8. Cytokinetics, Incorporated (NASDAQ:CYTK)
Year Perf: -35.20%
Analyst Upside: 51.97%
Number of Hedge Fund Holders: 61
Cytokinetics, Incorporated (NASDAQ:CYTK) is a biopharmaceutical company that discovers, develops, and commercializes muscle inhibitors to treat diseases that affect muscle performance. It develops small-molecule drug candidates particularly engineered to affect muscle function and contractility. Its clinical-stage drug candidate portfolio includes omecamtiv mecarbil, a novel cardiac myosin activator, CK-136, a novel cardiac troponin activator, reldesemtiv, a novel fast skeletal muscle troponin activator, aficamten, a novel cardiac myosin inhibitor, and CK-3772271, a novel cardiac myosin inhibitor.
The company recently announced its ‘Vision 2030’ plan built on a strong 5-year roadmap focusing on significantly enhancing immediate and future value. A significant component of these plans is the anticipated FDA approval and commercial launch of aficamten (afi) in 2025. The launch of this leading asset holds the potential to bolster Cytokinetics, Incorporated’s (NASDAQ:CYTK) position in the hypertrophic cardiomyopathy (HCM) market.
Cytokinetics, Incorporated (NASDAQ:CYTK) is also financially well-positioned. As of September 30, 2024, it has around $1.3 billion in cash and cash equivalents and investments, which supports the execution of its commercial strategies and pipeline development. The company has plans to continue the go-to-market goals for aficamten in Germany in 2025. Cytokinetics, Incorporated (NASDAQ:CYTK) also aims to expand commercial readiness activities in Europe this year to prepare for the expected approval by the European Medicines Agency (EMA) in H1 2026.
Carillon Eagle Small Cap Growth Fund stated the following regarding Cytokinetics, Incorporated (NASDAQ:CYTK) in its fourth quarter 2023 investor letter:
“Cytokinetics, Incorporated (NASDAQ:CYTK) is a clinical-stage biopharmaceutical company focusing on the discovery and development of therapeutic agents that modulate muscle function for the treatment of diseases and medical conditions. The company reported success in clinical trials for Aficamten, a treatment for symptomatic obstructive hypertrophic cardiomyopathy. Investors are optimistic about the prospects for this medication, which could turn out to be a safer, more effective alternative to the current market leader.”
7. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS)
Year Perf: -58.36%
Analyst Upside: 60.73%
Number of Hedge Fund Holders: 35
Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a commercial-stage biopharmaceutical company that discovers, develops, and commercializes novel therapeutic compounds for treating diseases with unmet needs. Its product portfolio primarily includes EMPAVELI and SYFOVRE. SYFOVRE treats geographic atrophy secondary to age-related macular degeneration (GA), while EMPAVELI treats paroxysmal nocturnal hemoglobinuria (PNH).
The company’s product portfolio is helping it make significant progress towards its long-term growth, reaching key milestones such as generating continued growth in vial demand for SYFOVRE. Commercial vial demand for SYFOVRE grew by 7% quarter-over-quarter in fiscal Q3 2024. SYFOVRE also maintained its market standing with 84,500 commercial vials shipped to physicians. Net product revenue for SYFOVRE reached $152 million in fiscal Q3 2024, more than double the same period last year.
Similarly, net product revenues for EMPAVELI in the US reached approximately $24.6 million in fiscal Q3 2024. These trends reflect the potential of Apellis Pharmaceuticals, Inc.’s (NASDAQ:APLS) strong product portfolio, which includes two potentially blockbuster products and a promising pipeline positioning it for long-term growth.
PGIM Jennison Health Sciences Fund stated the following regarding Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) in its Q3 2024 investor letter:
“Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is a biotech company focusing on complement therapeutics. The company sells two drugs. The first is subcutaneous pegcetacoplan for the treatment of Paroxysmal Nocturnal Hemoglobinuria (PNH) which was approved in 2021. The second, approved in February 2023, is Syfovre for the treatment of Geographic Atrophy (GA). Syfovre has shown compelling data out to 36 months and its launch has been going extraordinarily well. Outside of Empaveli and Syfovre, Apellis also has a growing pipeline of complement therapeutics focused on rare disease and ophthalmology. Weakness the past several months is attributed to lack of approval of Syfovre in Europe, the launch and marketing messages of a competitive drug from Astellas Pharma named Izervay, reimbursement dynamics between the two drugs and a slower than expected growth of the overall GA market. While we believe the market opportunity for GA and that growth in the treated GA patient population is large enough to support solid growth for both drugs, we have also come to appreciate that the safety issues seen with Syfove in the Summer of 2023 have complicated the marketing message for these new drugs. This has led to slower growth in the treated GA patient population than we expected, which has led us to decrease our position in Apellis. We continue to believe in the ultimate opportunity of Syfovre but have decreased our position size to more appropriately align with our updated view of the revenue growth and peak sales potential for Syfovre.”
6. CRISPR Therapeutics AG (NASDAQ:CRSP)
Year Perf: -38.39%
Analyst Upside: 62.12%
Number of Hedge Fund Holders: 27
Headquartered in Zug, Switzerland, CRISPR Therapeutics AG (NASDAQ:CRSP) develops transformative gene-based medicines for serious diseases through its proprietary CRISPR/Cas9 platform. The CRISPR/Cas9 platform allows precise changes to genomic DNA by employing gene editing technology. The company’s product portfolio spans therapeutic programs across various disease areas, including oncology, rare diseases, regenerative medicine, etc.
CRISPR Therapeutics AG (NASDAQ:CRSP) is focusing on strategically advancing its portfolio of clinical trials across autoimmune, diabetes, oncology, and cardiovascular indications. The FDA approval and launch of CASGEVY, a gene therapy for treating sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) in patients 12 years and older, have created considerable momentum for the company. CRISPR Therapeutics AG (NASDAQ:CRSP) has also received regulatory approval for the drug in various countries across the globe, including Canada, Switzerland, Great Britain, the European Union, and others, with product launches underway. The ongoing launch of the drug is continually gaining momentum, with new cell patient collection initiations expected to grow significantly in 2025. More than 50 authorized treatment centers (ATCs) have been activated globally for CASGEVY.
As of December 31, 2024, it has a strong balance sheet with around $1.9 billion in cash, cash equivalents, and marketable securities. Thus, supported by an approved commercial product, a strong balance sheet, and a rich pipeline, it is in a suitable position to expand its operations in 2025 and beyond.
5. Amicus Therapeutics, Inc. (NASDAQ:FOLD)
Year Perf: -32.73%
Analyst Upside: 83.29%
Number of Hedge Fund Holders: 40
Amicus Therapeutics, Inc. (NASDAQ:FOLD) is a biotech company that discovers, develops, and delivers medicines to treat metabolic diseases. Its product portfolio includes the first and only approved oral precision medicine to treat Fabry disease, a clinical-stage treatment paradigm for Pompe disease, and a rare disease gene therapy portfolio.
Amicus Therapeutics, Inc. (NASDAQ:FOLD) delivered total revenue of $528 million for the full year 2024, reflecting 32% year-over-year growth and 33% on a constant currency basis. Its product, Galafold, a precision medicine that treats Fabry disease, is continuing a robust commercial growth trajectory and delivered $458 million in revenue in fiscal year 2024. This translates to an 18% year-over-year growth, or 19% at constant exchange rates, making it one of the fastest-growing products within the Fabry treatment space. The drug’s continued penetration into the diagnosed untreated population is anticipated to be a major driver of growth in 2025 and beyond as the Fabry market grows with improved diagnosis and medical education.
The company’s global rare diseases capabilities position it to deliver continued revenue growth and increase profitability in 2025 and beyond. Amicus Therapeutics, Inc.’s (NASDAQ:FOLD) growing medicines with long commercial runways, financial strength, and a leverageable global infrastructure further support these objectives.
4. MoonLake Immunotherapeutics (NASDAQ:MLTX)
Year Perf: -29.98%
Analyst Upside: 87.15%
Number of Hedge Fund Holders: 27
Formerly known as Helix Acquisition Corp, MoonLake Immunotherapeutics (NASDAQ:MLTX) is a Switzerland-based clinical-stage biopharmaceutical company that develops medicines for immunologic diseases, including inflammatory skin and joint diseases. It develops tri-specific nanobody Sonelokimab (SLK), a molecule with enhanced enrichment in deep skin and joints and binding of targets.
MoonLake Immunotherapeutics (NASDAQ:MLTX) is investing in this growth opportunity and large clinical development programs while preparing for regulatory filings and other pre-commercial activities.
It ended fiscal Q3 2024 with $493.9 million in cash, cash equivalents, and short-term marketable debt securities. Management expects it to support a roadmap rich in potential catalysts and a cash runway to the end of 2026. Analysts are bullish on the company’s potential due to Sonelokimab, a pipeline-in-a-product across multiple significant indications that holds the potential to be worth over $8bn in sales by 2035 across the company’s targeted indications. The company ranks fourth on our list of the 10 oversold pharma stocks to buy according to analysts.
3. Legend Biotech Corporation (NASDAQ:LEGN)
Year Perf: -32.20%
Analyst Upside: 103.25%
Number of Hedge Fund Holders: 31
Legend Biotech Corporation (NASDAQ:LEGN) is a clinical-stage company that develops, discovers, manufactures, and commercializes novel therapies for oncology and other indications. It develops advanced cell therapies across an elaborate range of technology platforms. The company operates in the US, China, and other geographical segments.
The company is rapidly building a strong product portfolio with 11 pipeline programs in hematologic malignancies, solid tumors, and autoimmune diseases. The CARVYKTI therapy for multiple myeloma proved the most successful CAR-T launch to date, drawing $334 million in net trade sales in fiscal Q4 2024.
Legend Biotech Corporation (NASDAQ:LEGN) anticipates CARVYKTI’s potential to be $5.0 billion, potentially supporting the company’s growth initiatives. It is partnering with industry leaders, such as Johnson & Johnson and Novartis, to materialize this potential and expedite the development and commercialization of its therapies.
TimesSquare Capital US Focus Growth Strategy stated the following regarding Legend Biotech Corporation (NASDAQ:LEGN) in its first quarter 2024 investor letter:
“We began buying shares in Legend Biotech Corporation (NASDAQ:LEGN), a biotechnology developer of cell therapies to treat blood cancers such as multiple myeloma and leukemia. The European Union approved using Legend’s Carvykti treatment of multiple myeloma and later the FDA followed suit. Some investors may have been concerned about possible delays as Legend ramps up production, and its price declined. Though with a long-standing agreement with Johnson & Johnson and a new partnership with Novartis, we see a long runway of growth ahead, so we initiated a position.”
2. Immunovant, Inc. (NASDAQ:IMVT)
Year Perf: -42.86%
Analyst Upside: 138.04%
Number of Hedge Fund Holders: 36
Immunovant, Inc. (NASDAQ:IMVT) develops treatments for autoimmune diseases. Its product pipeline includes batoclimab and IMVT-1402, novel antibodies targeting the neonatal fragment crystallizable receptor (FcRn).
The company’s primary focus is boosting the potential of its lead asset, IMVT-1402, which is rapidly progressing with six Investigational New Drug (IND) applications cleared. Its development plans for Graves’ disease also paint an optimistic picture for the company, as it does not have competition in the domain. The company’s pivotal studies in Graves’ disease (GD) and difficult-to-treat rheumatoid arthritis (D2T RA) are to be conducted using standard YpsoMate® autoinjector technology and its planned commercial formulation.
As of December 31, 2024, the company’s pro forma cash balance was approximately $825 million, including around $450 million in gross proceeds from a private placement that closed on January 15, 2025. 36 hedge funds hold stakes in the company, and it ranks second on our list of oversold pharma stocks to buy according to analysts.
Baron Health Care Fund stated the following regarding Immunovant, Inc. (NASDAQ:IMVT) in its first quarter 2024 investor letter:
“Somewhat offsetting the above was adverse stock selection in biotechnology and health care supplies coupled with cash exposure amid favorable market conditions. Weakness in biotechnology was mainly due to disappointing performance from Rocket Pharmaceuticals, Inc. and Immunovant, Inc. (NASDAQ:IMVT), whose shares fell double digits in the period. Immunovant is focused on autoimmune disorders targeting the FcRn mechanism of action. A host of concerns weighed on Immunovant’s stock price, the most critical of which was competitor argenx SE’s failure in pemphigus vulgaris, which has raised questions about the addressable opportunity for the FcRn class. Overall, we continue to believe FcRn will command billions in revenue and that Immunovant has one of the two competitive offerings in the space. We are most optimistic about Immunovant’s development plans in Graves’ disease, a large commercial unmet need in which they currently have no competition.”
1. CG Oncology, Inc. (NASDAQ:CGON)
Year Perf: -41.65%
Analyst Upside: 151.88%
Number of Hedge Fund Holders: 26
CG Oncology, Inc. (NASDAQ:CGON) is a clinical biopharmaceutical company that develops and commercializes bladder-sparing therapeutics for bladder cancer. Its product cretostimogene is initially in clinical development for the treatment of Non-Muscle Invasive Bladder Cancer (NMIBC). The company is making significant advancements across its pipeline to develop a potential backbone bladder-sparing therapy for NMIBC. With a strong tolerability profile and safety, cretostimogene has the potential to induce a durable, complete response in bladder cancer patients. Investors are bullish on the stock as cretostimogene’s unique product profile distinguishes it from the investigational and current NMIBC treatments.
CG Oncology, Inc. (NASDAQ:CGON) has $540.7 million in cash and cash equivalents and marketable securities as of September 30, 2024. Based on its current operating plans, management expects its existing cash, cash equivalents, and marketable securities to be sufficient to fund operations through 2027. 26 hedge funds hold stakes in CG Oncology, Inc. (NASDAQ:CGON) as of fiscal Q3 2024. Its median price target of $28.22 implies an upside of 149.82% from current levels.
Overall, CGON ranks first among the 10 best performing pharma stocks so far in 2025. While we acknowledge the potential of pharma stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CGON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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