In this article, we will be taking a look at the 12 best low price pharma stocks to invest in right now.
The Rising Demand for Weight-Loss Medications and GLP-1 Developments
Healthcare, which includes numerous businesses that offer patient care, conduct research and development of novel treatments, and design, produce, and distribute diagnostic tools and tests, takes the term “defensive” a step further than practically any other industry. Improvements in medical technology, medications, and therapeutic approaches have changed the course of patient care. As the need for quick results has grown, pharmaceutical corporations in particular have drawn much attention. Global pharmaceutical manufacturing was estimated to be worth $516.48 billion in 2022, according to a Grand View Research analysis. From 2023 to 2030, the industry is expected to expand at a compound annual growth rate (CAGR) of 7.63%.
The biopharma industry now has the most extensive and varied clinical pipeline to date, thanks to decades of groundbreaking research. In 2012, there were 3,200 distinct medications under development; by 2022, that number had nearly doubled to 6,100. The average cost of producing a single treatment is over $1 billion, while just 14% of medications in clinical trials reach FDA clearance, according to MIT research. This could be a game-changer for AI. For instance, generative AI helps identify illness patterns in large data sets to determine the optimal medicine combinations while enabling researchers to investigate far more possible compounds than they could with conventional techniques. Additionally, according to PwC, AI-driven analytics and automation could cut operational costs by more than 30% and process timeframes by 60–70%.
In a similar vein, the market has grown significantly due to consumer interest in weight-loss medications like Ozempic and Wegovy. According to a recent study in the scientific journal Addiction, GLP-1 medications may reduce the prevalence of alcohol and opioid addiction by as much as 50%. Additionally, these medications are being evaluated for Alzheimer’s disease and other disorders that are frequently associated with obesity. The development of GLP-1s is becoming crucial for pharmaceutical businesses that want to be leaders in fields like cardiovascular and renal health.
Competition with the leading companies in the anti-obesity business, which is expected to grow to $130 billion by 2030, is no longer the main emphasis. The possibility for additional participants to enter the field is growing along with the possible applications of GLP-1s. For example, the Swiss business Roche entered the weight-loss drug sweepstakes last year when it paid up to $3.1 billion to acquire California-based Carmot Therapeutics. The corporation wants to “fast-track” its anti-obesity medicines to regain faith in its pipeline and take a share of the weight-loss market.
Challenges in Biotech Funding and the Shift Towards Cell and Gene Therapies
The pharmaceutical sector may appear to be flourishing at first glance. However, it has its own set of difficulties, just like every other industry. Compared to 2021, funding for biotech and pharmaceuticals fell by a sharp 48.6% last year. In 2022, the IPO market also saw a significant decline, with profits falling as a result of market volatility and instability. Many general investors were apprehensive of the spike in drug-developer initial public offerings (IPOs) in 2020 and 2021, which garnered about $46.5 billion, more than the total from the preceding eight years combined. Future initial public offerings (IPOs) are being closely watched due to the high-risk, high-reward nature of the biotech sector as well as macroeconomic and geopolitical issues that impact larger markets.
However, as of September 3, drug developers had raised $2 billion through initial public offerings (IPOs) this year, a 24% increase over the same period in 2023. However, according to BNN Bloomberg, over two-thirds of these funds were raised in the first two months as a result of a spike in new listings. However, pharma companies’ portion of U.S. IPO profits has decreased from 17% in February to 6.5%, with less than $800 million raised in the next six months.
Tim Hunt, CEO of the Alliance for Regenerative Medicine (ARM), emphasized increased funding in cell and gene therapies in 2024 in his opening remarks at the October 7 conference. Thirteen of the fifteen biggest pharmaceutical companies in the world by market capitalization, he said, now have an “active presence” in this area. Major pharmaceutical corporations are increasingly turning to cell and gene therapies to fill possible revenue shortages as many product patents are about to expire. Despite this enthusiasm, there has been a reduction in related patent filings, and the number of cell and gene therapy deals in the pharmaceutical industry fell by 38% in Q2 2024 compared to the same time in 2023. Nevertheless, the sector is appealing and should not be disregarded by investors.
A close-up of a staff member counting pills in a pharmaceutical warehouse.
Our Methodology
Our methodology involved selecting pharmaceutical sector stocks with a market capitalization exceeding $2 billion and a share price below $20. We then identified the stocks with the lowest share prices and verified their last closing prices using Yahoo Finance. Finally, we ranked these stocks in ascending order based on their closing price as of February 21st.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 12 best low price pharma stocks to invest in right now.
12. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Share Price as of the Close of February 21: $16.74
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is a global leader in the pharmaceutical industry which is primarily focused on generic drugs. As the largest generic drug manufacturer, the company offers over 3,500 products across various therapeutic areas. The company’s business model includes developing, manufacturing, and distributing both generic and specialty medicines worldwide. With a strong presence in North America, Europe, and other regions, the company reaches around 200 million people daily, producing 76 billion tablets and capsules annually. Due to its significant role in the generic drug market, Teva Pharmaceutical Industries Limited (NYSE:TEVA) is often considered one of the Best Low Price Pharma Stocks for investors looking for stability and value in the healthcare sector.
In 2024, Teva Pharmaceutical Industries Limited (NYSE:TEVA) made notable progress, contributing to both growth and financial stability. Key products like AUSTEDO, UZEDY, and AJOVY led revenue growth, with AUSTEDO seeing a 34% sales increase, UZEDY surpassing its sales target, and AJOVY growing by 18%.
Teva Pharmaceutical Industries Limited (NYSE:TEVA)’s innovative pipeline is promising, with late-stage products such as Duvakitug, Olanzapine, and ICS/SABA DARI progressing in clinical trials which adds to the company’s potential for future growth. The generics business also showed strong performance which is driven by improved product launches and operational efficiencies, while the company’s API business grew modestly.
For Q4 2024, Teva Pharmaceutical Industries Limited (NYSE:TEVA) reported revenue of $16.5 billion, a 9% year-over-year increase, along with a 9% rise in adjusted EBITDA and a 10% increase in non-GAAP EPS. This growth spanned all business segments: innovative products, generics, and API. The overall profitability improvement reflects effective expense management alongside strong revenue performance.
11. Organon & Co. (NYSE:OGN)
Share Price as of the Close of February 21: $15.49
Organon & Co. (NYSE:OGN) is a global healthcare and pharmaceutical company that is primarily focused on improving women’s health and well-being. Among the issues that are the focus of the company’s portfolio and innovation pipeline are bacterial vaginosis, breast cancer, contraception, endometriosis, menopause, polycystic ovarian syndrome (PCOS), and postpartum hemorrhage (PPH). The company provides a wide range of well-known medications in several therapeutic areas, biosimilars, and over 60 products and therapies for women’s health.
Organon & Co. (NYSE:OGN) has a strong range of products and is always trying to make them better. By 2025, Nexplanon, the company’s largest product, is expected to generate $1 billion in revenue. By acquiring Dermavant Sciences Ltd. in October 2024, the company added innovative treatments like VTAMA to its immuno-dermatology portfolio, creating additional revenue opportunities. The business recently declared that VTAMA (tapinarof) cream has received FDA approval to treat atopic dermatitis in adults and children aged two and up.
Organon & Co. (NYSE:OGN) has maintained control over operating expenses while encouraging expansion. As of November 2024, the company had generated approximately $700 million in free cash flow. Its strong cash flow allows it to make investments in high-potential assets and supports its dividend payments. The Board of Directors declared a quarterly dividend of $0.28 per share to show the company’s commitment to delivering value to shareholders while also focusing on future growth.
10. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Share Price as of the Close of February 21: $14.06
Takeda Pharmaceutical Company Limited (NYSE:TAK) is a Japanese multinational pharmaceutical company focused on developing, manufacturing, and selling medications and medical devices across key therapeutic areas such as oncology, rare diseases, neuroscience, gastroenterology, plasma-derived therapies, and vaccines. The company prioritizes research and development to create transformative treatments for unmet medical needs, with notable products like ENTYVIO for gastrointestinal disorders and ADYNOVI for hemophilia in its portfolio.
A 2.5% increase in revenues to JPY 4,590.0 billion is anticipated by Takeda Pharmaceutical Company Limited (NYSE:TAK) in its fiscal year 2024 financial forecast because of favorable foreign exchange rates, robust company expansion, and slower generic erosion of VYVANSE in the US. Operating profit is predicted to increase by 29.8% to JPY 344 billion, while net profit is predicted to increase by 73.5% to JPY 118 billion.
According to Insider Monkey’s Q4 database, 16 hedge funds were bullish on Takeda Pharmaceutical Company Limited (NYSE:TAK), an increase from 12 funds in the last quarter. It stands tenth among Best Low Price Pharma Stocks.
9. Dr. Reddy’s Laboratories Limited (NYSE:RDY)
Share Price as of the Close of February 21: $13.35
Dr. Reddy’s Laboratories Limited (NYSE:RDY) is a global pharmaceutical company that develops, manufactures, and markets over 190 medications, including generics, biosimilars, and over-the-counter products across therapeutic areas like oncology, cardiovascular, and dermatology.
Dr. Reddy’s Laboratories Limited (NYSE:RDY) reported strong Q3 FY25 results on January 23, 2025, with consolidated revenue reaching ₹8,359 crores ($977 million), a 16% YoY increase. Gross profit margin improved slightly to 58.7%, and EBITDA grew 9% YoY to ₹2,298 crores ($269 million). Net profit saw a modest 2% rise to ₹1,413 crores ($165 million). This growth was driven by the successful integration of the Nicotine Replacement Therapy (NRT) business, new product launches, and better operational efficiencies. Without the NRT acquisition, underlying revenue growth stood at 7.5%.
Dr. Reddy’s Laboratories Limited (NYSE:RDY) performed well across different markets. North America generics revenue remained flat at $401 million due to price erosion and competition. European generics saw an impressive 142% YoY growth, reaching $134 million, thanks to the NRT portfolio. Emerging markets grew by 12% YoY to ₹1,436 crores, while the India business posted a solid 14% YoY increase to ₹1,346 crores.
Despite these gains, investors should be mindful of risks such as rising competition in key markets, particularly in the US, and regulatory challenges. The recent US FDA inspection at the Hyderabad facility resulted in a Form 483 with seven observations, which could impact future operations.
8. Alvotech (NASDAQ:ALVO)
Share Price as of the Close of February 21: $12.28
Alvotech (NASDAQ:ALVO) is a biopharmaceutical company specializing in biosimilars—affordable alternatives to expensive biologic medicines. It focuses on developing monoclonal antibodies and complex biologics for diseases like cancer, autoimmune disorders, and eye conditions.
Alvotech (NASDAQ:ALVO) reported strong growth in Q3 2024, with revenue reaching $339 million for the first nine months—a nearly ninefold increase from 2023. This surge was driven by higher product sales and milestone payments from development and regulatory achievements. Product revenue alone hit $128 million, a 330% YoY increase, with Q3 sales reaching a record $62 million, up 16% from Q2, positioning Alvotech (NASDAQ:ALVO) as one of the Best Low Price Pharma Stocks.
The company also turned profitable, reporting an operating profit of $56 million for the first nine months, a major improvement from a $278 million loss in 2023. Adjusted EBITDA flipped to positive at $87 million, compared to a negative $226 million last year. Product margins rose to 37% in Q3 from 17% in Q2, reflecting better cost management and pricing strategies.
Alvotech (NASDAQ:ALVO)’s success comes from its strong execution in bringing biosimilars to market. Growing product sales and milestone payments indicate increasing market acceptance and progress in regulatory approvals, positioning the company for continued growth.
7. Viatris Inc. (NASDAQ:VTRS)
Share Price as of the Close of February 21: $11.25
Viatris Inc. (NASDAQ:VTRS) is a Pennsylvania-based pharmaceutical company that specializes in a wide variety of therapeutic areas. In 2020, the business separated from Pfizer. It is currently going through a phase of strong worldwide execution, which is causing its core business to rise steadily. This trend is anticipated to continue into the upcoming year. $133 million of its $3.8 billion in total revenues came from new goods. Additionally, by paying off almost $1.9 billion in debt, the company improved its financial standing. It also broadened its intellectual portfolio by entering into an exclusive licensing agreement with Lexicon Pharmaceuticals for sotagliflozin outside of the US and Europe.
Viatris Inc. (NASDAQ:VTRS) is well-positioned to produce consistent growth in its core business, invest in its operations, and return a significant amount of capital to shareholders because of its sector-leading cash flow and strong balance sheet. The company’s operating cash flow in the most recent quarter was $826.5 million, while its free cash flow was almost $750 million.
Despite efforts to lower its debt in the most recent quarter, Viatris Inc. (NASDAQ:VTRS) still owes more than $16 billion. Although this might worry some investors, it might not be a big deal considering the company’s dedication to giving shareholders their money back. Viatris Inc. (NASDAQ:VTRS) pays out about $580 million in dividends every year, suggesting that its current payout is probably sustainable. Since 2021, the business has been giving stockholders dividends regularly. As of February 20, it has a dividend yield of 4.25% and pays out a $0.12 quarterly dividend per share.
Viatris Inc. (NASDAQ:VTRS) remained popular among elite funds in Q4 2024, with 48 funds tracked by Insider Monkey owning positions in the company, up from 57 in the previous quarter.
6. Elanco Animal Health Incorporated (NYSE:ELAN)
Share Price as of the Close of February 21: $11.02
Elanco Animal Health Incorporated (NYSE:ELAN) is an animal health company that delivers services and products that prevent and treat disease in pets and farm animals and stands sixth among the best low price pharma stocks to invest in right now. Cats, dogs, cattle, swine, poultry, and sheep are the main species that are served by its varied portfolio.
Elanco Animal Health Incorporated (NYSE:ELAN) offers two categories of products: Pet Health and Farm Animal. The Pet Health portfolio focuses on immunizations, treatments, and parasiticides. Additionally, it sells products that provide defense against internal parasites, fleas, and ticks. The Farm Animal portfolio comprises a complex array of items with an emphasis on pigs, cattle, and poultry. Among them are Comforta, Catosal, Maxiban, Monteban, Rumensin, Experior, Baycox, and Denagard.
Elanco Animal Health Incorporated (NYSE:ELAN) has shown tremendous growth potential and is strategically focused on optimizing its operations while advancing its creative product pipelines. Credelio Quattro’s anticipated Q1 2025 introduction is anticipated to bolster the business’s standing in the parasiticide market. Additionally, it is projected that Experior’s robust performance—mainly in the heifer market—will play a major role in its expansion in 2025.
The possible success of these products, along with the continued growth of Zenrelia, a JAK inhibitor that was introduced in late September 2024 to treat atopic dermatitis and pruritus in dogs, is anticipated to support revenue growth and further solidify Elanco Animal Health Incorporated’s (NYSE:ELAN) position in the market over the coming years.
5. Walgreens Boots Alliance, Inc. (NASDAQ:WBA)
Share Price as of the Close of February 21: $10.16
Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is an American multinational company providing retail, pharmacy, and healthcare services. In the US, Europe, and Latin America, the corporation operates about 12,500 outlets. Among the well-known brands in its portfolio are Benavides, o7 Beauty Company, Duane Reade, Boots, and Walgreens.
To better connect with its customers, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) is reassessing its merchandising approach. It intends to increase the range of brands it offers while exercising discretion when choosing national brands, especially in the wellness and health sectors. More than 300 new owned brand products were introduced in fiscal 2024, and another 300 are scheduled to be introduced in fiscal 2025, positioning the company as one of the Best Low Price Pharma Stocks.
Over the next three years, Walgreens Boots Alliance, Inc. (NASDAQ:WBA) plans to shutter about 1,200 underperforming locations as part of a strategic footprint rationalization program. For fiscal 2025, the corporation plans to close over 500 locations. Walgreens Boots Alliance, Inc. (NASDAQ:WBA) anticipates enhanced free cash flow and adjusted earnings per share (EPS) as a result of this strategic move. Additionally, the company is concentrating on strategic cost control measures and maximizing its retail footprint.
4. Haleon plc (NYSE:HLN)
Share Price as of the Close of February 21: $10.08
Haleon plc (NYSE:HLN) is a British multinational consumer healthcare company specializing in OTC medications and wellness products. It operates across five categories: Oral Health, VMS, Pain Relief, Respiratory Health, and Digestive Health. The company generates revenue by marketing trusted brands directly to consumers and healthcare professionals through retail sales and pharmacy partnerships.
Haleon plc (NYSE:HLN) expects organic revenue growth of 4-6% for FY 2024, with operating profit growth in the high-single digits. The company’s £300 million productivity program is on track, reinvesting savings into advertising and clinical studies. However, divestitures of Lamisil, ChapStick, and NRT businesses outside the US will reduce revenue by 1.9% and adjusted operating profit by 5.2%.
Geographically, Q3 2024 showed strong growth in Asia Pacific (8.2%), followed by EMEA and LatAm (6.1%) and North America (4.8%). However, foreign exchange rates are expected to negatively impact revenue by 3.7% and adjusted operating profit by 6.5%. Haleon plc (NYSE:HLN) also completed the acquisition of a 33% equity stake in Tianjin TSKF in China, boosting future earnings by reducing Non-Controlling Interest.
Financially, the company’s Q3 organic revenue growth was 6.1%, driven by a 3.3% price increase and a 2.8% rise in volume/mix. Oral and Respiratory Health categories performed well, while Pain Relief declined due to tough comparatives in China but recovered in Q3. Haleon plc (NYSE:HLN) remains focused on long-term profitability through cost savings and reinvestments. The company completed its £500 million share buyback program and continues to manage its debt through bond repayments and new issuances.
3. Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX)
Share Price as of the Close of February 21: $7.83
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) develops and distributes affordable generic and specialty drugs, including key diabetes treatments. Its products include the recently FDA-approved GLP-1 agonist exenatide, which is used to treat type 2 diabetes, and generic metformin, which is a first-line treatment for the disease. Advanced, reasonably priced therapeutic solutions are made possible by the company’s concentration on complicated generics.
Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) announced a 13% increase in net revenue to $702 million in Q3 2024, which was a solid result. Neurology and endocrinology drugs drove a 19% increase in specialty sales, while generics revenue increased by 9%. Adjusted EPS came at $0.165, and adjusted EBITDA increased by 2% to $158 million. Due to the success of new products, biosimilars, and generics, the company has made $2.68 billion so far this year. The company is concentrating on high-margin products to increase profitability, even if its GAAP net loss was only $0.2 million.
Metsera, Inc. and Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) have partnered together to create next-generation therapies for metabolic disorders and obesity. Amneal’s network and facilities will help Metsera’s injectable and oral initiatives, which include GLP-1 and amylin receptor agonists. To improve its market position, the business has also resubmitted its New Drug Application for the DHE Autoinjector, aims to introduce CREXONT for Parkinson’s disease, and purchased a high-value biosimilar. The company’s dedication to expansion and innovation in the pharmaceutical sector is demonstrated by these projects as well as its emphasis on specialized and complex generic medications.
Analysts hold a consensus Strong Buy rating on Amneal Pharmaceuticals, Inc. (NASDAQ:AMRX) and it stands third among the best low-price pharma stocks to invest in right now.
2. Grifols, S.A. (NASDAQ:GRFS)
Share Price as of the Close of February 21: $7.45
Grifols, S.A. (NASDAQ:GRFS) is a Spanish global healthcare company specializing in plasma-derived therapies, diagnostics, and hospital pharmacy products. The company was founded in 1909 in Barcelona and it develops and markets biological medicines for rare and life-threatening conditions. The company operates through five divisions: Bioscience (plasma-derived therapies), Diagnostic (in vitro diagnostics), Hospital (medical technology and medicines), Bio Supplies (biological products for non-therapeutic use), and others. Its core business revolves around plasma-based treatments for chronic diseases.
Grifols, S.A. (NASDAQ:GRFS) delivered strong financial results in Q3 2024, showing solid growth and improved financial health. Revenue reached EUR 1,793 million, reflecting a 12.4% year-over-year increase. Adjusted EBITDA grew by 26.7% to EUR 462 million, with a healthy margin of 26%. Free cash flow saw a significant boost to EUR 127 million, and the company successfully lowered its leverage ratio from 6.8x in Q1 to 5.1x in Q3, indicating better debt management.
Grifols, S.A. (NASDAQ:GRFS)’s Biopharma division performed well, growing by 12.1% in Q3. The Immunoglobulin (IG) Franchise saw a strong 16.6% increase, with subcutaneous IG experiencing a remarkable 52% growth year-to-date. Albumin sales also rose by 11.7%, further strengthening Grifols’ position in the plasma-derived medicines market.
Grifols, S.A. (NASDAQ:GRFS) remains a market leader in plasma-derived therapies, benefiting from rising global demand. The company continues to improve its financial performance by increasing revenue, expanding profit margins, and reducing debt. Its focus on innovation is evident through its recent contract with the US BARDA to develop a recombinant polyclonal antibody therapeutic platform. With a strong presence in key international markets like China, Grifols, S.A. (NASDAQ:GRFS) is well-positioned for long-term growth.
1. Bausch Health Companies Inc. (NYSE:BHC)
Share Price as of the Close of February 21: $7.31
Bausch Health Companies Inc. (NYSE:BHC) is a global pharmaceutical company specializing in eye health, gastroenterology, dermatology, and neurology and tops the list for being one of the best low price pharma stocks. It develops and sells prescription drugs, over-the-counter products, and medical devices. The company has five key segments: Bausch + Lomb (eye health), Salix (gastrointestinal products), International Rx, Ortho Dermatologics, and Diversified Products, offering a wide range of products such as contact lenses, surgical equipment, and prescription medications.
Bausch Health Companies Inc. (NYSE:BHC) continues to show strong growth, making it a solid investment choice in the pharmaceutical sector. In Q4 2024, the company reported its seventh consecutive quarter of year-over-year growth in both revenue and adjusted EBITDA. Quarterly revenue reached $2.56 billion, up 6% on a reported basis and 9% organically, while full-year revenue rose to $9.63 billion, reflecting 10% reported growth. The company posted a GAAP net income of $93 million in Q4 but ended the year with a net loss of $46 million. Adjusted EBITDA for the quarter was $935 million (up 8%), and for the full year, it reached $3.31 billion (up 10%).
Bausch Health Companies Inc. (NYSE:BHC)’s growth is driven by strong performance across all segments. The Salix segment, led by Xifaxan, grew 12% in Q4, while the Solta Medical segment surged by 35%, benefiting from expansion in South Korea and China. Bausch + Lomb also performed well, achieving 10% organic growth, reinforcing its leadership in eye health products.
Overall, Bausch Health Companies Inc. (NYSE:BHC) ranks first among the best low price pharma stocks to invest in right now. While we acknowledge the potential of pharma companies, 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 BHC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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