Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 7 stocks made the list for top value stocks in the Biotechnology & Medical Research industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.
Latest Biotechnology & Medical Research Stock News
Before choosing which top Biotechnology & Medical Research stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.
The Biotechnology and Medical Research sub-industry has a positive outlook, a historically defensive sub-industry. Drug sales are anticipated to have high growth, primarily driven by COVID-19 therapeutics, the continued adoption of many new and innovative therapies, a favorable M&A environment, and a low prevalence of patent expirations in 2022. Additionally, companies could see prescription growth pick up as in-person physician visits return to pre-pandemic levels. As COVID-19 variants have emerged, vaccine boosters have been offered in order to increase efficacy. Due to this, repeat vaccinations will likely be necessary for lifelong immunity which would provide a long-lasting and significant source of revenue for lead vaccine developers. Aside from vaccines, the biotech industry is dependent on the volume of new therapy approvals. The FDA’s heavy focus on COVID-19 could slow the approvals on non-COVID-19 therapies. Despite this, the biotech industry will likely see promising sales growth over the next five years as it usually takes at least five years for new drugs to reach peak sales levels. Approval activity has also been on the rise recently. Mergers and acquisitions activity is expected to remain low as a more activist Federal Trade Commission (led by Lina Khan) could be more skeptical of proposed mergers. Year to date through June 30, the S&P 1500 Biotech Index was down 1.6%, vs. a 20.5% decline for the S&P 1500 Composite Index. In 2021, the Biotech Index rose 8.2%, vs. a 26.7% gain for the Composite Index.
Why Focus on Undervalued Biotechnology & Medical Research Stocks?
Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.
AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.
What Goes Into AAII’s Value Grade?
Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.
AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.
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7 Undervalued Biotechnology & Medical Research Stocks
Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 7 undervalued stocks in the Biotechnology & Medical Research industry for Wednesday, December 06, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Biotechnology & Medical Research industry median.
| Company | Ticker | Price/Sales | Price/Earnings | EV/EBITDA | Shareholder Yield | Price/Book Value | Price/Free Cash Flow | Value Grade |
| Amarin Corporation plc (ADR) | AMRN | 0.91 | na | na | (0.9%) | 0.53 | na | B |
| Avrobio Inc | AVRO | na | na | 0.4 | (1.7%) | 0.60 | na | A |
| Fresh Tracks Therapeutics Inc | FRTX | 0.50 | na | 0.7 | (103.5%) | 0.46 | na | B |
| InMed Pharmaceuticals Inc | INM | 0.29 | na | 0.6 | (284.5%) | 0.14 | na | A |
| IO Biotech Inc | IOBT | na | na | 1.1 | (74.1%) | 0.39 | na | B |
| Protara Therapeutics Inc | TARA | na | na | 0.3 | (0.7%) | 0.21 | na | A |
| Xenetic Biosciences Inc | XBIO | 2.64 | na | 0.5 | (7.0%) | 0.57 | na | B |
The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.
The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)
Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).
As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.
Amarin Corporation plc (ADR)’s Value Grade
Value Grade:
| Metric | Score | AMRN | Industry Median |
| Price/Sales | 33 | 0.91 | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | na | na | 0.8 |
| Shareholder Yield | 58 | (0.9%) | (10.5%) |
| Price/Book Value | 12 | 0.53 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
Amarin Corporation PLC is a pharmaceutical company. The Company is focused on the commercialization and development of therapeutics to improve cardiovascular (CV), health and reduce CV risk. The Company operates through the development and commercialization of VASCEPA. Its lead product, Vascepa (icosapent ethyl) capsule is used as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. This indication for Vascepa, known as the MARINE indication, is based primarily on the results from the MARINE study of Vascepa in this approved patient population. The Company sells Vascepa principally to wholesalers, as well as selected regional wholesalers and specialty pharmacy providers, or collectively, its distributors, which in turn resell Vascepa to retail pharmacies for resale to patients and healthcare providers.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Amarin Corporation plc (ADR) has a Value Score of 75, which is considered to be undervalued.
When you look at Amarin Corporation plc (ADR)’s price-to-sales ratio at 0.91 compared to the industry median at 7.56, this company has a lower price relative to revenue compared to its peers. This could make Amarin Corporation plc (ADR)’s stock more attractive for value investors.
Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Amarin Corporation plc (ADR)’s shareholder yield is higher than its industry median ratio of (10.50%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.
As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Amarin Corporation plc (ADR)’s price-to-book ratio is lower than its industry median ratio of 1.56. This could make Amarin Corporation plc (ADR) more attractive to investors looking for a new addition to their portfolio.
Avrobio Inc’s Value Grade
Value Grade:
| Metric | Score | AVRO | Industry Median |
| Price/Sales | na | na | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 2 | 0.4 | 0.8 |
| Shareholder Yield | 64 | (1.7%) | (10.5%) |
| Price/Book Value | 14 | 0.60 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
AVROBIO, Inc. is a clinical-stage gene therapy company. The Company is focused on developing curative ex vivo lentiviral-based gene therapies to treat patients with rare diseases following a single dose treatment regimen. Its gene therapies employ hematopoietic stem cells that are harvested from the patient and then modified with a lentiviral vector to insert the equivalent of a functional copy of the gene that is mutated in the target disease. The Company is focusing on a group of rare genetic diseases referred to as lysosomal disorders, primarily managed with enzyme replacement therapies. Its pipeline is comprised of various HSC gene therapy programs, which include AVR-RD-02 for the treatment of Gaucher disease type 1 and type 3; AVR-RD-05 for the treatment of neuronopathic mucopolysaccharidosis type II (MPS-II) or Hunter syndrome; and AVR-RD-03 for the treatment of Pompe disease.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Avrobio Inc has a Value Score of 89, which is considered to be undervalued.
Avrobio Inc’s price-to-book ratio is higher than its peers. This could make Avrobio Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about Avrobio Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Fresh Tracks Therapeutics Inc’s Value Grade
Value Grade:
| Metric | Score | FRTX | Industry Median |
| Price/Sales | 20 | 0.50 | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 3 | 0.7 | 0.8 |
| Shareholder Yield | 95 | (103.5%) | (10.5%) |
| Price/Book Value | 9 | 0.46 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
Fresh Tracks Therapeutics, Inc. is a clinical-stage pharmaceutical company. The Company is engaged in transforming patient lives through the development of differentiated prescription therapeutics. Its pipeline is focused on providing existing treatment paradigms and features several new chemical entities that inhibit novel targets with potential for autoimmune, inflammatory, and other debilitating diseases. The Company?s strategy is exploring therapies by identifying, pursuing, and developing therapeutics that can help people struggling with autoimmune, inflammatory, and other debilitating diseases. Its pipeline includes FRTX-02, FRTX-10, Next-Generation Kinase Inhibitors and FRTX-03. FRTX-02 is a potential Oral DYRK1A Inhibitor for the treatment of autoimmune and inflammatory diseases. Its FRTX-10 is a covalent Stimulator of Interferon Genes (STING) inhibitor candidate for the potential treatment of autoimmune, inflammatory, and rare genetic diseases.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Fresh Tracks Therapeutics Inc has a Value Score of 80, which is considered to be undervalued.
Fresh Tracks Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Fresh Tracks Therapeutics Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about Fresh Tracks Therapeutics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
InMed Pharmaceuticals Inc’s Value Grade
Value Grade:
| Metric | Score | INM | Industry Median |
| Price/Sales | 12 | 0.29 | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 3 | 0.6 | 0.8 |
| Shareholder Yield | 98 | (284.5%) | (10.5%) |
| Price/Book Value | 2 | 0.14 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
InMed Pharmaceuticals Inc. is a clinical-stage pharmaceutical company. The Company is engaged in developing a pipeline of prescription-based products, including rare cannabinoids and cannabinoid analogs, targeting the treatment of diseases with high unmet medical needs, as well as developing proprietary manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry. Its segments include InMed Pharmaceuticals and BayMedica. The InMed Pharmaceuticals segment is engaged in research and development of cannabinoid-based pharmaceutical products. The BayMedica segment is focused on developing manufacturing technologies to produce rare cannabinoids for sale in the health and wellness industry. Its two product candidates include INM-755 and INM-088. INM-755 is developed as a topical skin cream formulation containing cannabinol (CBN) for the treatment of symptoms related to Epidermolysis Bullosa (EB). INM-088 is used for the treatment of glaucoma.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
InMed Pharmaceuticals Inc has a Value Score of 86, which is considered to be undervalued.
InMed Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make InMed Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about InMed Pharmaceuticals Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
IO Biotech Inc’s Value Grade
Value Grade:
| Metric | Score | IOBT | Industry Median |
| Price/Sales | na | na | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 4 | 1.1 | 0.8 |
| Shareholder Yield | 94 | (74.1%) | (10.5%) |
| Price/Book Value | 8 | 0.39 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
IO Biotech Inc is a clinical-stage biopharmaceutical company developing immune-modulating cancer therapies based on T-win technology platform. The Company’s product candidates are designed to induce the immune system to simultaneously target and disrupt multiple pathways that regulate tumor-induced immunosuppression. IO Biotech’s lead product candidate, IO102-IO103, is designed to target the immunosuppressive mechanisms mediated by key immunosuppressive proteins such as IDO and PD-L1. The Company develops a pipeline of product candidates that leverage its T-win technology platform to address targets within the TME. The Company is spin-off of National Cancer for Center Immune Therapy at Herlev University Hospital in Denmark.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
IO Biotech Inc has a Value Score of 74, which is considered to be undervalued.
IO Biotech Inc’s price-to-book ratio is higher than its peers. This could make IO Biotech Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about IO Biotech Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Protara Therapeutics Inc’s Value Grade
Value Grade:
| Metric | Score | TARA | Industry Median |
| Price/Sales | na | na | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 2 | 0.3 | 0.8 |
| Shareholder Yield | 56 | (0.7%) | (10.5%) |
| Price/Book Value | 3 | 0.21 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
Protara Therapeutics, Inc. is a clinical-stage biopharmaceutical company. The Company is focused on identifying therapies for the treatment of cancer and rare diseases. The Company's pipeline includes TARA-002 and IV Choline Chloride. The Company's lead product pipeline is TARA 002 for the treatment of non-muscle invasive bladder cancer (NMIBC) and Lymphatic Malformations (LMs). TARA 002 is a cellular therapy based on OK-432, also known as Picibanil, which is derived from a genetically distinct strain of Streptococcus Pyogenes. The Company?s IV choline chloride is an investigational, intravenous (IV) phospholipid substrate replacement therapy, which is in development for patients receiving parenteral nutrition (PN) who have intestinal failure-associated liver disease (IFALD).
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Protara Therapeutics Inc has a Value Score of 96, which is considered to be undervalued.
Protara Therapeutics Inc’s price-to-book ratio is higher than its peers. This could make Protara Therapeutics Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about Protara Therapeutics Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Xenetic Biosciences Inc’s Value Grade
Value Grade:
| Metric | Score | XBIO | Industry Median |
| Price/Sales | 67 | 2.64 | 7.56 |
| Price/Earnings | na | na | 19.6 |
| EV/EBITDA | 2 | 0.5 | 0.8 |
| Shareholder Yield | 76 | (7.0%) | (10.5%) |
| Price/Book Value | 13 | 0.57 | 1.56 |
| Price/Free Cash Flow | na | na | 18.1 |
Xenetic Biosciences, Inc. is a biopharmaceutical company. The Company is focused on advancing its immune-oncology technologies addressing hard to treat cancers. The Company's DNase platform is designed to improve outcomes of existing treatments, including immunotherapies, by targeting neutrophil extracellular traps (NETs), which are weblike structures composed of extracellular chromatin coated with histones and other proteins. The Company is also developing its personalized Chimeric Antigen Receptor (CAR) T platform technology, XCART, to develop cell-based therapeutics targeting the B-cell receptor on the surface of an individual patient?s malignant tumor cells, for the treatment of B-cell lymphomas. It is also focused on developing its proprietary drug delivery platform, PolyXen, which uses the biological polymer polysialic acid (PSA) to prolong the drug's half-life and potentially improve the stability of therapeutic peptides and proteins.
Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.
Xenetic Biosciences Inc has a Value Score of 66, which is considered to be undervalued.
Xenetic Biosciences Inc’s price-to-book ratio is higher than its peers. This could make Xenetic Biosciences Inc less attractive for value investors when compared to the industry median at 1.56.
You can read more about Xenetic Biosciences Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.
Other Biotechnology & Medical Research Stock Grades
Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.
Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Biotechnology & Medical Research stocks as well as other industrys.
Choosing Which of the 7 Best Biotechnology & Medical Research Stocks Is Right for You
Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.
- Amarin Corporation plc (ADR) stock has a Value Grade of B.
- Avrobio Inc stock has a Value Grade of A.
- Fresh Tracks Therapeutics Inc stock has a Value Grade of B.
- InMed Pharmaceuticals Inc stock has a Value Grade of A.
- IO Biotech Inc stock has a Value Grade of B.
- Protara Therapeutics Inc stock has a Value Grade of A.
- Xenetic Biosciences Inc stock has a Value Grade of B.
Now that you have a bit more background about each of the 7 undervalued stocks in the Biotechnology & Medical Research industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.
We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.
A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.
Additional Resources About Biotechnology & Medical Research Stocks
Want to learn more about Biotechnology & Medical Research stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.
- 7 Undervalued Biotechnology & Medical Research Stocks for Wednesday, December 06
- 7 Undervalued Biotechnology & Medical Research Stocks for Tuesday, December 05
- Which Is a Better Investment, Qiagen NV or TG Therapeutics Inc Stock?
- Why AnaptysBio Inc’s (ANAB) Stock Is Up 4.17%
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