In this article, we discuss the 5 cheap pharmaceutical stocks to watch. If you want to read our detailed analysis of the cheap pharma stocks, go directly to read the 10 Cheap Pharmaceutical Stocks to Watch.
5. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX)
Number of Hedge Fund Holders: 16
Stock Price as of September 22: $4.89
Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) is an American biopharmaceutical company that develops and commercializes therapies for rare neurological diseases. The company stands fifth on our list of cheap pharmaceutical stocks to watch.
In August, Piper Sandler appreciated the company’s growing business as it continues to generate positive cash flow. The firm lifted its price target on Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) to $6.50, while keeping an ‘Overweight’ rating on the shares. In Q2 2021, the company reported an operating income of $15.8 million, up from $10.3 million from the prior-year quarter. Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) generated $36.3 million in revenue in the second quarter, beating the estimates by $5.07 million. Since the beginning of the year, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) delivered a 38.5% return to shareholders, while its 12-month returns stood at 52.34%.
In Q2 2021, 16 hedge funds tracked by Insider Monkey have positions in Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX), compared with 13 in the previous quarter. These stakes are valued at over $92.1 million. With 10 million shares, Steven Boyd’s Armistice Capital is the company’s leading shareholder.
4. Amneal Pharmaceuticals, Inc. (NYSE:AMRX)
Number of Hedge Fund Holders: 17
Stock Price as of September 22: $5.03
Amneal Pharmaceuticals, Inc. (NYSE:AMRX) stands fourth on our list of the cheap pharmaceutical stocks to watch. It is a specialty pharmaceutical company that manufactures and commercializes complex oral solids, injectables, softgels, and inhalation products.
On August 25, Amneal Pharmaceuticals, Inc. (NYSE:AMRX) announced a successful late-stage trial of its IPX-203 drug in certain patients with Parkinson’s Disease and reported a significant improvement in the drug’s efficacy. In Q2 2021, Amneal Pharmaceuticals, Inc. (NYSE:AMRX) posted an EPS of $0.25, beating the consensus by $0.06. The company reported revenue of $535.07 million, presenting a 15.2% year-over-year growth. In April, Guggenheim lifted its price target on Amneal Pharmaceuticals, Inc. (NYSE:AMRX) to $8.00, while maintaining a ‘Buy’ rating on the shares. After hitting a low of $2.87 in April 2020 due to the pandemic-related financial market crash, Amneal Pharmaceuticals, Inc. (NYSE:AMRX) gained 18.99% in the past year.
Of the 873 hedge funds tracked by Insider Monkey, 17 hedge funds have positions in Amneal Pharmaceuticals, Inc. (NYSE:AMRX) as of Q2 2021, up from 15 in the previous quarter. These stakes are valued at over $53.6 million.
3. Citius Pharmaceuticals Inc (NASDAQ: CTXR)
Number of Hedge Fund Holders: 3
Stock Price as of September 27: $2.09
Citius is one of the best cheap stocks to buy for long-term growth. Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) develops and markets drugs for critical care.
On September 7, Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) announced that it had signed an agreement with Dr. Reddy’s Laboratories for exclusive licensing of E7777, an oncology immunotherapy for the treatment of cutaneous T-cell lymphoma.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Citius Pharmaceuticals, Inc. (NASDAQ: CTXR) with 1.8 million shares worth more than $6.6 million.
2. Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD)
Number of Hedge Fund Holders: 28
Stock Price as of September 22: $12.67
Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) stands second on our list of the cheap pharmaceutical stocks to watch. It is an American pharmaceutical company that manufactures medicines for patients suffering from gastrointestinal (GI) diseases.
On August 26, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) got approval from the FDA for its revised label for LINZESS (linaclotide) as the data signaled the clinical safety of the drug. The drug would be used to averse the risk of dehydration and contraindication in children. In Q2 2021, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) posted an EPS of $0.34, beating the estimates by $0.12. The company’s revenue for the quarter stood at $104.03 million, presenting a 16.3% year-over-year growth. For FY21, Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) expects revenue in the range of $390 million to $410 million. In July, Morgan Stanley raised its price target on Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD) to $12, while keeping an ‘Equal Weight’ rating on the shares. The stock gained 30.1% in the past year and 12.88% year to date.
In Q2 2021, 28 hedge funds tracked by Insider Monkey have positions in Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), worth $498.4 million. The number of hedge funds having stakes in the company were the same in the previous quarter.
1. Viatris Inc. (NASDAQ:VTRS)
Number of Hedge Fund Holders: 53
Stock Price as of September 22: $13.28
Viatris Inc. (NASDAQ:VTRS) tops our list of the cheap pharmaceutical stocks to watch. It is a global pharmaceutical company that provides access to medicines, sustainable operations, and develops innovative solutions to improve patients’ health.
In Q2 2021, Viatris Inc. (NASDAQ:VTRS) posted an EPS of $0.98, beating the estimates by $0.10. The company’s revenue for the quarter stood at $4.58 billion, up 67.8% from the prior-year quarter. Viatris Inc. (NASDAQ:VTRS) raised its FY21 revenue guidance and expects revenue in the range of $17.5 billion and $17.9 billion, versus the estimates of $17.6 billion. This May, Royal Bank of Canada initiated its coverage on Viatris Inc. (NASDAQ:VTRS) with an ‘Outperform’ rating and a $24 price target.
In Q2 2021, 53 hedge funds tracked by Insider Monkey have positions in Viatris Inc. (NASDAQ:VTRS), compared with 58 in the previous quarter. The total value of these stakes is over $1.5 billion. With over 1.5 million shares, worth $22.7 billion, Crake Asset Management is the company’s leading shareholder.
Mittleman Brothers mentioned Viatris Inc. (NASDAQ:VTRS) in its first-quarter 2021 investor letter. Here is what the firm has to say:
“Our other new position in Q1 (in addition to AMA Group) is Viatris (VTRS), which is the old stock of the generic drug manufacturer Mylan Labs after it merged with Pfizers’s Upjohn unit late last year, via a tax-efficient Reverse Morris Trust. VTRS’s current market capitalization of ~$17B is less than 6x its estimated FCF of $3B (before restructuring costs) estimated for 2022, and the current enterprise value of $40B is only 6.4x EBITDA of $6.25B. Consider that Mylan Labs stock (MYL, predecessor to VTRS) was nearly $67/share on a $40B buy-out offer from Teva in 2015. Mylan rejected that seemingly very reasonable bid. In merging with Pfizer’s spin-off of Upjohn, Viatris became an equal (in sales, about $17B for each company) to the largest player in generic pharmaceuticals globally, Teva, Mylan’s former suitor. Viatris is an orphan, but its pedigree is tarnished (the reputation of Mylan’s management in rejecting the Teva bid, and other mistakes, still lingers), even though the new CEO and CFO come from Pfizer, the Chairman and President from Mylan remain. Also, ETFs that owned Pfizer had to sell the VTRS shares that they received, which added considerable forced selling.”
You can also take a look at Top Pharmaceutical Companies in India and 10 Best Pharmaceutical Stocks to Buy According to Cathie Wood
