12 Cheap Healthcare Stocks to Buy Heading into 2025

6. Biogen Inc. (NASDAQ:BIIB)

P/E Ratio: 13.60 

Biogen Inc. (NASDAQ:BIIB) is a biopharmaceutical company focused on neurological and neurodegenerative diseases. Its key products include Avonex, Plegridy, Tysabri, and Tecfidera for multiple sclerosis; Spinraza for spinal muscular atrophy; Fumaderm for severe plaque psoriasis; and Fampyra for MS symptom management.

Due to problems with its Alzheimer’s medicine, Leqembi, and dwindling sales of important multiple sclerosis medications, Tecfidera and Tysabri, Biogen Inc. (NASDAQ:BIIB) has struggled in 2024, down more than 40% year-to-date and entering our list of cheap healthcare stocks among large-cap companies. Decreased royalties and contract manufacturing revenue are further challenges.

Analysts continue to see the company favorably despite this. Michael Yee, an analyst at Jefferies, kept his Buy recommendation on the firm with a $250 price target. The suggestion is based on encouraging results for Biogen Inc. (NASDAQ:BIIB)’s Alzheimer’s medication, Leqembi, in Europe. Based on genetic markers, the EMA has overturned its previous ruling and now suggests that Leqembi be approved for particular patient categories. Given that Europe might account for almost 30% of the drug’s worldwide sales, this choice is viewed as a huge opportunity.

Yee listed several difficulties, such as the need for the business to enhance its product pipeline, logistical barriers for patient adoption and diagnostic infrastructure, and delays in EU pricing and reimbursement procedures. Notwithstanding these problems, Leqembi’s approval among patient groups exhibiting a discernible improvement in cognitive function supports the market’s potential for expansion.