In this article we will take a look at the 5 cheap pharmaceutical stocks for 2021. For a detailed analysis of the pharma industry, go directly to 10 Cheap Pharmaceutical Stocks For 2021.
5. 111, Inc. (NASDAQ: YI)
Number of Hedge Fund Holders: 5
111, Inc. (NASDAQ: YI) is a China-based firm that markets a healthcare platform which sells health and wellness products through digital retail, wholesale and pharmacies. It also provides online consultation services and e-prescription services to consumers, even on mobile platforms. The firm deals in drugs, nutritional supplements, contact lenses; medical supplies and devices, including bandages and thermometers; and personal care products. It is placed fifth on our list of 10 cheap pharmaceutical stocks for 2021.
The market cap of the firm is over $900 million and it posted an annual revenue of more than $1.26 billion in December 2020, an increase of more than 50% compared to the previous year. The 52-week share price range of the firm is $45-$5 and earlier today, shares were trading for as low as $11. In March, the company announced that it was partnering with another pharma firm to develop an online chronic disease management platform for the hepatobiliary disease market in China. It also operates an online marketplace for third-party drug sellers.
Totem Point Management currently owns 562,788 shares of YI, worth $3.9 million. 111 Inc. occupies 1.62% of Totem Point’s overall equity.
4. Clever Leaves Holdings Inc. (NASDAQ: CLVR)
Number of Hedge Fund Holders: 9
Clever Leaves Holdings Inc. (NASDAQ: CLVR) is a New York-based company that cultivates, extracts, manufactures, and commercializes pharmaceutical-grade cannabinoid products. It has operations in Colombia, Portugal, Germany, the United States, and Canada. The firm also makes and sells natural remedies and dietary supplements. These products are sold to mass retailers, health stores and independent distributors. Clever is placed fourth on our list of 10 cheap pharmaceutical stocks to buy for 2021.
The market cap of the firm is close to $300 million and it posted an annual revenue of more than $12 million in December 2020. The 52-week price range of company stock is $19.4-$8. Earlier today, the shares were being traded at $11.4. In March, the company announced a deal with another European pharma firm for the sale of medical cannabis extracts that are produced by the New York firm. Clever said it would develop the product in accordance with European regulations exclusively for the new partner.
Our database shows that 9 hedge funds held stakes in CLVR as of the end of the fourth quarter, versus 10 funds in the third quarter.
3. Evolus, Inc. (NASDAQ: EOLS)
Number of Hedge Fund Holders: 10
Evolus, Inc. (NASDAQ: EOLS) is a California-based firm that deals in medical aesthetic products for physicians and their patients. The products of the firm include Jeuveau, a proprietary 900 kilodalton purified botulinum toxin type A formulation for the temporary improvement in the appearance of moderate to severe glabellar lines in adults. The firm also offers regulatory management services. It was founded in 2012 and is placed third on our list of 10 cheap pharmaceutical stocks for 2021.
The market cap of the company is over $500 million and it posted a revenue of more than $20 million in the fourth quarter of 2020, up almost $13 million to the preceding quarter. The 52-week share price range of the firm is $17.3-$2.8. Earlier today, the shares were trading at $11.2. In March, the company announced that it had reached an open market sales agreement with SVB Leerink for $75 million worth of common stock. North Carolina-based Truist International had earlier downgraded Evolus rating from a Buy to Hold after an IP settlement by the firm.
AWH Capital currently holds 174,500 shares of EOLS that amounts $586,000. EOLS occupies 0.58% of AWH Capital’s total portfolio.
2. Teva Pharmaceutical Industries Limited (NYSE: TEVA)
Number of Hedge Fund Holders: 26
Teva Pharmaceutical Industries Limited (NYSE: TEVA) is an Israel-based company that focuses on the development and production of generic drugs. It also has stakes in active pharmaceutical ingredients and proprietary pharmaceuticals. The company markets sterile products, hormones, high-potency drugs, and cytotoxic substances in various dosage forms, including tablets, capsules, injectables, inhalants, liquids, ointments, and creams. It is placed second on our list of 10 cheap pharmaceutical stocks for 2021.
The company has a market cap of over $11 billion and posted an annual revenue of more than $16.5 billion in December 2020, down slightly to the $16.8 billion revenue posted the previous year. The 52-week share price range of the company is $13-$8. Earlier today, the shares of the company were trading at $10.8. Earlier this month, the European Union authorized Seffalair and BroPair Spiromax, two drugs developed by Teva, for the treatment of asthma patients. Initial launch of the new products are planned in Portugal, Spain, and the United Kingdom.
With a $412.9 million stake in TEVA, Warren Buffett’s Berkshire Hathaway owns 42.7 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 26 hedge funds held stakes in TEVA as of the end of the fourth quarter, versus 33 funds in the third quarter.
In one of their investor letters, Miller Value Partners highlighted a few stocks and Teva Pharmaceutical Industries Ltd (NYSE:TEVA) is one of them. Here is what Miller Value Partners said:
“Teva Pharmaceuticals (TEVA) declined 26.9% during the quarter as the market continues to be concerned on opioid liabilities as well as price fixing lawsuits. The company report 2Q results with total revenue of $3.87B below consensus of $4.024B, but reiterated 2020 company guidance of $16.6-17B (consensus of $17.041B). The company reported 2Q Adjusted EBITDA of $1.108B versus $1.099B expected and reiterated 2020 Adjusted EBITDA of $4.5-4.9B ($4.637B consensus) and adjusted EPS of $2.30-2.55 ($2.53 consensus) and Free Cash Flow of $1.8-2.2B. The company was hit after the US Department of Justice alleged in a lawsuit that TEVA provided illegal copays from 2006-2015 on a drug to treat MS. The allegation is $300mm of false claims which TEVA would be liable for 3x that in potential damages if they were to lose in court.”
1. Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD)
Number of Hedge Fund Holders: 26
Ironwood Pharmaceuticals, Inc. (NASDAQ: IRWD) is a Boston-based firm that concentrates on the development and commercialization of gastrointestinal (GI) products. The products that the company offers include linaclotide, a guanylate cyclase type-C agonist for the treatment of adults suffering from irritable bowel syndrome. The firm is also rumored to be developing IW-3300, a GC-C agonist, which is in pre-clinical development for the treatment of visceral pain conditions. The company was founded in 1998 and is placed first on our list of 10 best pharmaceutical stocks for 2021.
It has a market cap of more than $1.6 billion and posted an annual revenue of more than $380 million in December 2020, down from the $428 million posted the previous year. The 52-week share price range of the firm is $12.5-$8.6. Earlier today, the shares of Ironwood were trading at $10.8. In February, the company announced that CEO Mark Mallon would be stepping down from his role. Shares of the company had soared earlier this year as it posted quarterly earnings that had beaten Wall Street estimates.
As of the end of the fourth quarter, there were 26 hedge funds in Insider Monkey’s database that held stakes in IRWD, compared to 24 funds in the third quarter. Sarissa Capital Management, with 14.04 million shares of IRWD, is the biggest stakeholder in the company.
You can also take a peek at 10 Best Biotech Stocks To Buy For 2021, and Top 10 Best Freelancing Platforms and Websites for 2021.
