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.

Click the button below to learn more about A+ Investor and subscribe today.

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 Thursday, November 16, 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.

Addex Therapeutics Ltd - ADR’s Value Grade

Value Grade:

Addex Therapeutics Ltd is a Switzerland-based clinical-stage pharmaceutical company. The Company focuses on development and commercialization of orally available small molecule drugs known as allosteric modulators for neurological disorders. The Company’s clinical programs pipeline include dipraglurant (mGlu5 NAM), which is Phase 2a placebo-controlled clinical trial for Parkinson's disease levodopa-induced dyskinesia (PD-LID), and is being prepared to enter registration trials for PD-LID, and ADX71149 (mGlu2 positive allosteric modulator or PAM), which is being developed in collaboration by its partner Janssen Pharmaceuticals, Inc to treat schizophrenia and anxious depression. It also is advancing several preclinical programs, including GABABPAM for pain, overactive bladder and other disorders, mGlu7 NAM for post-traumatic stress disorder, mGlu2 NAM for mild neurocognitive disorders, mGlu4 PAM for Parkinson’s disease and mGlu3 PAM for neurodegenerative disorders.

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.

Addex Therapeutics Ltd - ADR has a Value Score of 91, which is considered to be undervalued.

When you look at Addex Therapeutics Ltd - ADR’s price-to-sales ratio at 0.08 compared to the industry median at 6.50, this company has a lower price relative to revenue compared to its peers. This could make Addex Therapeutics Ltd - ADR’s stock more attractive for value investors.

Now, let’s assess Addex Therapeutics Ltd - ADR’s EV/EBITDA ratio, also known as enterprise multiple. At 0.5, when compared to the industry median of 0.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

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. Addex Therapeutics Ltd - ADR’s shareholder yield is lower than its industry median ratio of (9.80%). 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. Addex Therapeutics Ltd - ADR’s price-to-book ratio is lower than its industry median ratio of 1.48. This could make Addex Therapeutics Ltd - ADR more attractive to investors looking for a new addition to their portfolio.

Applied Molecular Transport Inc.’s Value Grade

Value Grade:

Applied Molecular Transport Inc. is a clinical-stage biopharmaceutical company. The Company is leveraging its technology platform to design and develop a pipeline of oral biologic product candidates to treat autoimmune, inflammatory, metabolic, and other diseases. The Company?s pipeline includes AMT-101, and AMT-126. AMT-101 is a gastrointestinal-selective oral fusion of interleukin 10 (IL-10) and its proprietary carrier molecule that has been designed for active transport across the intestinal epithelium (IE) barrier into local gastrointestinal (GI) tissue. AMT-126 is a GI-selective oral fusion of interleukin 22 (IL-22) and its proprietary carrier molecule presently in development for diseases related to IE barrier function defects. Its technology platform enables it to design and develop various oral biologic therapeutic modalities, such as peptides, proteins, full-length antibodies, antibody fragments, and ribonucleic acid (RNA) therapeutics with development-stage drugs.

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.

Applied Molecular Transport Inc. has a Value Score of 87, which is considered to be undervalued.

Applied Molecular Transport Inc.’s price-to-book ratio is higher than its peers. This could make Applied Molecular Transport Inc. less attractive for value investors when compared to the industry median at 1.48.

You can read more about Applied Molecular Transport 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.

Bioatla Inc’s Value Grade

Value Grade:

BioAtla, Inc. is a clinical-stage biopharmaceutical company focused on developing antibody-based therapeutics for the treatment of solid tumor cancer. The Company?s product candidates include BA3011 (Mecbotamab vedotin), BA3021 (Ozuriftabmab vedotin), BA3071 and BA3182. Its lead product candidate, BA3011, is a conditionally active biologics (CAB) antibody-drug conjugates (ADC) that targets AXL, which is a protein kinase receptor. BA3021 is developing a CAB antibody drug conjugate directed against a receptor tyrosine kinase such as orphan receptor 2 (ROR2). BA3071 is a CAB anti-CTLA-4 antibody that is being developed as a therapeutic for multiple solid tumor indications, including renal cell carcinoma, NSCLC, small cell lung cancer, hepatocellular carcinoma, melanoma, bladder and gastric cancer, and cervical cancer. BA3182 is designed with an EpCAM binding domain and a CD3 binding domain, both binding domains with CAB activity (Dual-CAB), for the treatment of advanced adenocarcinoma.

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.

Bioatla Inc has a Value Score of 68, which is considered to be undervalued.

Bioatla Inc’s price-to-book ratio is higher than its peers. This could make Bioatla Inc less attractive for value investors when compared to the industry median at 1.48.

You can read more about Bioatla 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.

Conduit Pharmaceuticals Inc’s Value Grade

Value Grade:

Conduit Pharmaceuticals, Inc. is a disease agnostic life science company. The Company is engaged in the development and commercialization of clinical assets to address the unmet medical needs of patients. The Company’s licensed clinical assets are focused on idiopathic male infertility and autoimmune diseases or immunodeficient conditions like uveitis, preterm labor, renal transplant rejection and Hashimoto’s Thyroiditis. The Company’s asset pipeline includes AZD1656 (a Glucokinase Activator), and AZD5904 (a Myeloperoxidase Inhibitor). AZD1656 is a glucokinase activator used in diabetes mellitus. It is used as a treatment option for Hashimoto’s Thyroiditis (HT) and Graves’ disease, including investigating any negative side effects of the use of AZD1656 as compared with treatment options for Hashimoto’s Thyroiditis and Graves’ disease. AZD5904 includes a potent, irreversible inhibitor of human myeloperoxidase (MPO), that has the potential to treat Idiopathic Male Infertility (IMI).

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.

Conduit Pharmaceuticals Inc has a Value Score of 71, which is considered to be undervalued.

Conduit Pharmaceuticals Inc’s price-earnings ratio is 386.9 compared to the industry median at 18.5. This means that it has a higher price relative to its earnings compared to its peers. This makes Conduit Pharmaceuticals Inc less attractive for value investors.

Conduit Pharmaceuticals Inc’s price-to-book ratio is higher than its peers. This could make Conduit Pharmaceuticals Inc less attractive for value investors when compared to the industry median at 1.48.

You can read more about Conduit 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.

LAVA Therapeutics NV’s Value Grade

Value Grade:

LAVA Therapeutics NV, formerly known as Lava Therapeutics BV, is a provider of biotechnology research and development services based in the Netherlands. The Company focuses of developing next generation Vdelta T cell engaging bispecific antibodies to fight cancer.

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.

LAVA Therapeutics NV has a Value Score of 76, which is considered to be undervalued.

LAVA Therapeutics NV’s price-to-book ratio is higher than its peers. This could make LAVA Therapeutics NV less attractive for value investors when compared to the industry median at 1.48.

You can read more about LAVA Therapeutics NV’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.

Pulmatrix Inc’s Value Grade

Value Grade:

Pulmatrix, Inc. is a clinical-stage biopharmaceutical company, which is focused on developing inhaled therapies to address serious pulmonary diseases and central nervous system (CNS) disorders using its patented inhaled small particles easily respirable and emitted (iSPERSE) technology. Its inhaled therapeutic products based on its dry powder delivery technology, namely iSPERSE enables delivery of small or large molecule drugs to the lungs by inhalation for local or systemic applications. iSPERSE powders are engineered to be small, dense particles with dispersibility and delivery to airways. Its iSPERSE?s lead development program, PUR1900 is its inhaled formulation of itraconazole, an anti-fungal drug commercially available as an oral drug, which it is developing to treat and prevent pulmonary fungal infections. Its pipeline also includes PUR3100 for the treatment of acute migraine, and PUR1800 for the treatment of acute exacerbations of chronic obstructive pulmonary disease (AECOPD).

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.

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

Pulmatrix Inc’s price-to-book ratio is higher than its peers. This could make Pulmatrix Inc less attractive for value investors when compared to the industry median at 1.48.

You can read more about Pulmatrix 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 85, which is considered to be undervalued.

Zymeworks Inc’s price-earnings ratio is 2.5 compared to the industry median at 18.5. 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 1.48.

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.

• Addex Therapeutics Ltd - ADR stock has a Value Grade of A.
• Applied Molecular Transport Inc. stock has a Value Grade of A.
• Bioatla Inc stock has a Value Grade of B.
• Conduit Pharmaceuticals Inc stock has a Value Grade of B.
• LAVA Therapeutics NV stock has a Value Grade of B.
• Pulmatrix 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 Thursday, November 16
• Which Is a Better Investment, Beam Therapeutics Inc or BIO-TECHNE Corp Stock?
• 3 Undervalued Biotechnology & Medical Research Stocks for Wednesday, November 15
• Why Ambrx Biopharma Inc’s (AMAM) Stock Is Up 4.88%

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.