Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 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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6 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 6 undervalued stocks in the Biotechnology & Medical Research industry for Monday, November 13, 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 73, which is considered to be undervalued.

When you look at Amarin Corporation plc (ADR)’s price-to-sales ratio at 0.92 compared to the industry median at 6.17, 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 (8.26%). 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 1.28. This could make Amarin Corporation plc (ADR) more attractive to investors looking for a new addition to their portfolio.

Inhibitor Therapeutics Inc’s Value Grade

Value Grade:

Inhibitor Therapeutics, Inc. is a pharmaceutical development company. The Company is focused on developing and commercializing therapeutics for patients with certain cancers and certain non-cancerous proliferation disorders. It also explores acquiring or licensing other pre-clinical and clinical stage therapeutics addressing unmet needs and orphan indications for the treatment of cancer and other diseases. The Company?s primary focus is on the development of therapies initially for BCCNS, prostate and lung cancers in the United States utilizing Itraconazole, in a patent-protected formulation. It has conducted a Phase IIb study of SUBA-Itraconazole for the treatment of Basal Cell Carcinoma Nevus Syndrome, and Mayne Pharma assumed control of the clinical and regulatory development of this formulation for this indication.

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.

Inhibitor Therapeutics Inc has a Value Score of 92, which is considered to be undervalued.

Inhibitor Therapeutics Inc’s price-earnings ratio is 6.1 compared to the industry median at 18.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Inhibitor Therapeutics Inc more attractive for value investors.

Inhibitor Therapeutics Inc’s price-to-book ratio is lower than its peers. This could make Inhibitor Therapeutics Inc more attractive for value investors when compared to the industry median at 1.28.

You can read more about Inhibitor 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.

LadRx Corp’s Value Grade

Value Grade:

LadRx Corp is a biopharmaceutical research and development company specializing in oncology. The Company is focused on the discovery, research and clinical development of novel anti-cancer drug candidates that employ novel technologies that target chemotherapeutic drugs to solid tumors and reduce off-target toxicities. The Company’s LADR (Linker Activated Drug Release) technology platform consists of an organic backbone that is attached to a chemotoxic agent. The LADR backbone is to target and deliver the chemotoxic agent to the tumor environment and then to release the chemotoxic agent within the tumor. The LADR Technology offers the opportunity for multiple pipeline drugs. The LADR development efforts are focused on two classes of ultra-high potency albumin-binding drugs. These LADR-based drugs, LADR7, 8, 9, and 10, combine the proprietary LADR backbone with novel derivatives of the auristatin and maytansinoid drug classes.

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.

LadRx Corp has a Value Score of 85, which is considered to be undervalued.

LadRx Corp’s price-to-book ratio is higher than its peers. This could make LadRx Corp less attractive for value investors when compared to the industry median at 1.28.

You can read more about LadRx Corp’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.

Medicure Inc’s Value Grade

Value Grade:

Medicure Inc. is a Canada-based pharmaceutical company. The Company is focused on the development and commercialization of therapies for the United States cardiovascular market. The focus of the Company is the marketing and distribution of AGGRASTAT (tirofiban hydrochloride) injection and ZYPITAMAG (pitavastatin) tablets in the United States, where they are sold through the Company’s United States subsidiary, Medicure Pharma Inc. The Company also operates Marley Drug, Inc. (Marley Drug), a pharmacy located in North Carolina that offers an Extended Supply drug program serving all 50 states, Washington D.C. and Puerto Rico. Marley Drug is committed to improving the health status of its patients and the communities they serve while reducing overall health care costs for employers and other health care consumers. AGGRASTAT is indicated to reduce the rate of thrombotic cardiovascular events in patients with non-ST elevation acute coronary syndrome (NSTE-ACS).

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.

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

Medicure Inc’s price-earnings ratio is 7.9 compared to the industry median at 18.6. This means that it has a lower price relative to its earnings compared to its peers. This makes Medicure Inc more attractive for value investors.

Medicure Inc’s price-to-book ratio is higher than its peers. This could make Medicure Inc less attractive for value investors when compared to the industry median at 1.28.

You can read more about Medicure 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.

Third Harmonic Bio Inc’s Value Grade

Value Grade:

Third Harmonic Bio, Inc. is a biopharmaceutical company. The Company is engaged in the development of medicine for the treatment of inflammatory diseases, including dermal, respiratory, and gastrointestinal diseases. It is focused on developing oral small-molecule inhibitors of KIT, a cell surface receptor that serves as the master regulator of mast cell function and survival. Mast cells are a part of the immune system, and dysfunctional mast cell activity has been implicated in the pathophysiology of a broad range of inflammatory disorders including urticaria, asthma and gastrointestinal disorders, among others. The Company?s clinical studies demonstrate that KIT inhibition is used for the treatment of a range of mast-cell-mediated inflammatory diseases, and that a titratable, oral, intracellular small molecule inhibitor may provide the optimal therapeutic profile against this target.

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.

Third Harmonic Bio Inc has a Value Score of 77, which is considered to be undervalued.

Third Harmonic Bio Inc’s price-to-book ratio is higher than its peers. This could make Third Harmonic Bio Inc less attractive for value investors when compared to the industry median at 1.28.

You can read more about Third Harmonic Bio 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 86, which is considered to be undervalued.

Zymeworks Inc’s price-earnings ratio is 2.3 compared to the industry median at 18.6. 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 1.28.

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 6 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.
• Inhibitor Therapeutics Inc stock has a Value Grade of A.
• LadRx Corp stock has a Value Grade of A.
• Medicure Inc stock has a Value Grade of A.
• Third Harmonic Bio Inc stock has a Value Grade of B.
• Zymeworks Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 6 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.

• 6 Undervalued Biotechnology & Medical Research Stocks for Monday, November 13
• 4 Undervalued Biotechnology & Medical Research Stocks for Friday, November 10
• Why 4D Molecular Therapeutics Inc’s (FDMT) Stock Is Up 5.24%
• Why Amicus Therapeutics, Inc.’s (FOLD) Stock Is Up 4.36%

AAII Disclaimer

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