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 Tuesday, June 27, 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.

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:

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 61, which is considered to be undervalued.

When you look at Amarin Corporation plc (ADR)’s price-to-sales ratio at 1.27 compared to the industry median at 8.87, 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 (6.31%). 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 1.72. This could make Amarin Corporation plc (ADR) more attractive to investors looking for a new addition to their portfolio.

Cullinan Oncology Inc’s Value Grade

Value Grade:

Cullinan Oncology, Inc. is a biopharmaceutical company. The Company is focused on creating standards of care for patients with cancer. The Company?s lead candidate, Zipalertinib (CLN-081/TAS6417) in a Phase IIb, is an orally available small molecule designed as an irreversible epidermal growth factor receptor (EGFR), inhibitor that is designed to selectively target cells expressing mutant EGFR variants, including EGFR exon 20 insertion (EGFRex20ins), mutations, with relative sparing of cells expressing wild type EGFR. The Company?s evaluating CLN-081 as a treatment for non-small cell lung cancer (NSCLC), in adult patients with EGFRex20ins mutations in a Phase IIb trial. The Company?s other product candidates include CLN-049, CLN-619, CLN-418, CLN-617 and CLN-978. Its CLN-049 is a FLT3/CD3 T cell engaging bispecific antibody being investigated in patients with relapsed/refractory acute myeloid leukemia (AML) or myelodysplastic syndrome (MDS).

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.

Cullinan Oncology Inc has a Value Score of 93, which is considered to be undervalued.

Cullinan Oncology Inc’s price-earnings ratio is 9.3 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Cullinan Oncology Inc more attractive for value investors.

Cullinan Oncology Inc’s price-to-book ratio is higher than its peers. This could make Cullinan Oncology Inc less attractive for value investors when compared to the industry median at 1.72.

You can read more about Cullinan Oncology 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.

Molecular Partners AG (ADR)’s Value Grade

Value Grade:

Molecular Partners AG is a Switzerland-based clinical-stage biotech company developing DARPin (Designed Ankyrin Repeat Proteins) a new class of custom-built protein therapeutics based on natural binding proteins that open a new dimension of multi-functionality and multi-target specificity in drug design. The Company has formed partnerships with leading pharmaceutical companies to advance DARPin therapeutics , and has compounds in various stages of clinical and preclinical development across multiple therapeutic areas.

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.

Molecular Partners AG (ADR) has a Value Score of 95, which is considered to be undervalued.

Molecular Partners AG (ADR)’s price-earnings ratio is 1.6 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Molecular Partners AG (ADR) more attractive for value investors.

Molecular Partners AG (ADR)’s price-to-book ratio is higher than its peers. This could make Molecular Partners AG (ADR) less attractive for value investors when compared to the industry median at 1.72.

You can read more about Molecular Partners AG (ADR)’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.

Inotiv Inc’s Value Grade

Value Grade:

Inotiv, Inc. is an international contract research company that is providing nonclinical and analytical drug discovery and development services to the pharmaceutical and medical device industries and selling a range of research-quality animals and diets to the same industries as well as academia and government clients. Its products and services focus on bringing new drugs and medical devices through the discovery and preclinical phases of development. It operates through two segments: Discovery and Safety Assessment (DSA) and Research Models and Services (RMS). Its DSA segment supports the discovery, nonclinical development, and clinical development needs of researchers and clinicians for primarily small molecule drug candidates, as well as biotherapeutics and biomedical devices. Its RMS segment offers access to a range of small and large research models for basic research and drug discovery and development, as well as specialized models for specific diseases and therapeutic areas.

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.

Inotiv Inc has a Value Score of 82, which is considered to be undervalued.

Inotiv Inc’s price-to-book ratio is higher than its peers. This could make Inotiv Inc less attractive for value investors when compared to the industry median at 1.72.

You can read more about Inotiv 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.

Purple Biotech Ltd - ADR’s Value Grade

Value Grade:

Purple Biotech Ltd, formerly Kitov Pharma Ltd, is an Israel-based clinical-stage company that develops drugs that overcome tumor-immune evasion and drug resistancetreat pain. Main products of the Company is NT-219 i CM-24. CM-24 is a monoclonal antibody blockin and NT-219 is a small molecule bi-specific inhibitor of two key cancer resistance pathways. The Company is also the owner of Consensi, a fixed-dose combination of celecoxib and amlodipine besylate, for the simultaneous treatment of osteoarthritis pain and hypertension.

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.

Purple Biotech Ltd - ADR has a Value Score of 85, which is considered to be undervalued.

Purple Biotech Ltd - ADR’s price-to-book ratio is higher than its peers. This could make Purple Biotech Ltd - ADR less attractive for value investors when compared to the industry median at 1.72.

You can read more about Purple Biotech Ltd - ADR’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.

Theriva Biologics Inc’s Value Grade

Value Grade:

Theriva Biologics, Inc. is a diversified clinical-stage company developing therapeutics designed to treat cancer and related diseases in areas of high unmet need. The Company is advancing a new oncolytic adenovirus platform designed for intravenous (IV), intravitreal and antitumoral delivery to trigger tumor cell death, improve access of co-administered cancer therapies to the tumor, and promote a robust and sustained anti-tumor response by the patients immune system. The Company?s lead candidates are: VCN-01, an oncolytic adenovirus designed to replicate selectively and aggressively within tumor cells, and to degrade the tumor stroma barrier; SYN-004 (ribaxamase) which is designed to degrade used IV beta-lactam antibiotics within the gastrointestinal (GI) tract to prevent microbiome damage, and SYN-020, a recombinant oral formulation of the enzyme intestinal alkaline phosphatase (IAP) produced under cGMP conditions and intended to treat both local GI and systemic 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.

Theriva Biologics Inc has a Value Score of 85, which is considered to be undervalued.

Theriva Biologics Inc’s price-to-book ratio is higher than its peers. This could make Theriva Biologics Inc less attractive for value investors when compared to the industry median at 1.72.

You can read more about Theriva Biologics 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.

Zymeworks Inc’s Value Grade

Value Grade:

Zymeworks Inc. is a global biotechnology company. The Company is engaged in the discovery, development, and commercialization of multifunctional biotherapeutics to treat cancer and other serious diseases. Its lead product candidate, zanidatamab, is a bispecific antibody that targets two distinct domains of the human epidermal growth factor receptor 2 (HER2). Its second product candidate, zanidatamab zovodotin, combines the biparatopic antibody design of zanidatamab with its ZymeLink auristatin antibody-drug conjugate (ADC) technology, comprised of its cytotoxin (cancer cell-killing compound) and cleavable linker. It is also advancing a pipeline of preclinical product candidates and discovery-stage programs in oncology (including immuno-oncology agents) and other therapeutic areas with an emphasis on developing ADC and multi-specific antibody therapeutics (MSAT) candidates. Its pipeline of preclinical product candidates includes two lead programs, ZW191 and ZW17.

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.

Zymeworks Inc has a Value Score of 83, which is considered to be undervalued.

Zymeworks Inc’s price-earnings ratio is 3.1 compared to the industry median at 11.7. This means that it has a lower price relative to its earnings compared to its peers. This makes Zymeworks Inc more attractive for value investors.

Zymeworks Inc’s price-to-book ratio is higher than its peers. This could make Zymeworks Inc less attractive for value investors when compared to the industry median at 1.72.

You can read more about Zymeworks 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.
• Cullinan Oncology Inc stock has a Value Grade of A.
• Molecular Partners AG (ADR) stock has a Value Grade of A.
• Inotiv Inc stock has a Value Grade of A.
• Purple Biotech Ltd - ADR stock has a Value Grade of A.
• Theriva Biologics Inc stock has a Value Grade of A.
• Zymeworks Inc stock has a Value Grade of A.

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 Tuesday, June 27
• Is OncoSec Medical Inc (ONCSQ) Stock a Good Investment?
• 4 Undervalued Biotechnology & Medical Research Stocks for Monday, June 26
• Is RetinalGenix Technologies Inc (RTGN) Stock a Good Investment?

AAII Disclaimer

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