12 Cheap Healthcare Stocks to Buy in 2023
In this piece, we will take a look at the twelve cheap healthcare stocks to buy in 2023. For more healthcare stocks, head on over to 5 Cheap Healthcare Stocks to Buy in 2023.
The healthcare sector is one of the few industries that has rapidly transformed itself in just a couple of decades. Modern science has enabled firms to not only develop new and novel treatments but also rapidly scale up production and ensure that products have a global reach in the case of a crisis such as the coronavirus pandemic. This trend is clearly evident in the World Health Organization's (WHO) Global Vaccine Report 2022 which outlines that from the 5.8 billion vaccine doses that were shipped globally in 2019 - the last year before the coronavirus ravaged the world - the amount grew almost threefold to a stunning 16 billion in 2021 as the pharmaceutical sector was able to quickly scale up production and ensure that the coronavirus was neutralized.
However, the virus isn't the only frontier for the healthcare industry. The industry is busy tackling diseases and other areas that would have been thought to be impossible just a couple of years ago. For instance, the global stem cell treatment market is one of the fastest growing markets that you're likely to come across. A research report from Markets and Markets outlines that this industry was worth $257 million in 2022 and can grow at a compounded annual growth rate (CAGR) of 16.8% until 2027 to be worth an estimated $558 million by the end of the forecast period. The stem cell industry is one of the most advanced sectors not only in healthcare but also in other unrelated sectors simply due to the complexity of the products involved. Stem cells are one of the few naturally produced biological products that are capable of repairing the human body. The cells are primarily obtained from the amniotic fluid present inside the uterus at the time of pregnancy or the cells that are present in the umbilical cord. Their properties enable them to be used as a treatment for serious diseases such as blood cancer or damaged body organs such as the skin or the eyes.
Another high end healthcare sector is gene editing and sequencing. This market is significantly larger than the stem cell industry, with Markets and Markets estimating that it was worth $5.1 billion in 2021 and outlining that the industry will grow through an 18.2% CAGR until 2026 to be worth an estimated $11.6 billion by the end of the forecast period. Gene editing also counts itself in the list of the most revolutionary technologies known to humankind, as it has allowed scientists to use ribonucleic acids (RNA) derived from bacteria to influence the behavior of cells and change their DNA. This has enabled them to alter the very structural makeup of an organism and prevent certain diseases from occurring. One of the most hyped treatments that has resulted from gene editing is a treatment for thalassemia. Made by bluebird bio, Inc. (NASDAQ:BLUE), the drug has a $2.8 million price tag and is marketed as a one time treatment for beta thalassemia. Another key player in this market is CRISPR Therapeutics AG (NASDAQ:CRSP), whose treatments with the Cas9 enzyme are the bedrock of the industry. However, as evidence of the fact that the gene editing sector still has a long way to go, treatments with Cas9 that target tumor cells have also been shown to have the devastating consequence of potentially activating cancer causing genes as well.
When we take a look at the broader healthcare sector, it becomes clear that the two subsegments mentioned above will outpace the industry in terms of growth. A research report from Market.us estimates that the consumer healthcare industry was worth a whopping $359 billion in 2022 and will grow at an 8.7% CAGR to be worth an estimated $827 billion by the end of 2032. The research firm believes that growth in diseases such as heart problems will spur the demand for over the counter medicines and stimulate the sector. It adds that growth in awareness about healthy living combined with the fact that more prescription free products will drive consumer spending.
Shifting gears back to the genomic editing market, the sector continues to move forward with clinical trials and developing new technologies at the same time. This was clear during a recent earnings call held by the management of Intellia Therapeutics, Inc. (NASDAQ:NTLA) in late February 2023 where the firm's chief executive officer Dr. David Lebwohl shed light on how its treatments and products are revolutionizing medicine:
I’ll begin with a review of 2001, a potential single dose treatment that may halt and reverse the disease for people living with ATTR amyloidosis. In November, we shared additional positive interim results from the cardiomyopathy arm of the ongoing Phase 1 clinical trial of 2001. These data which were presented in a late breaking oral presentation at the American Heart Association Scientific Sessions, demonstrated consistent greater than 90% serum TTR reduction following a single dose of 2001. The deep reductions were sustained with patient follow-up ranges from four to six months, as of the data cutoff date. 2001 was generally well tolerated in all 12 patients. Two of the 12 patients reported transient infusion reactions, which resolved quickly and which was the only observed treatment related adverse events.
No clinically significant laboratory abnormalities were observed at either dose level. We continue to believe these deep, durable and consistent levels of protein reduction support 2001’s potential to be a best-in-class TTR lowering agent regardless of disease manifestation. In the last few months, we completed the planned enrollment for the dosing expansion portion of the cardiomyopathy and polyneuropathy arm. Data from these cohorts will be used to inform our dose selections decision for subsequent pivotal studies.
With these details in mind, let's take a look at some cheap healthcare stocks, out of which the top picks are AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX), Catalyst Biosciences, Inc. (NASDAQ:CBIO), and Chimerix, Inc. (NASDAQ:CMRX).
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Our Methodology
To identify cheap healthcare stocks we first made a list of all healthcare companies that have a price to earnings ratio of less than 10. Out of these, the cheapest in terms of the lowest P/E ratio were selected and are listed below.
Cheap Healthcare Stocks to Buy in 2023
12. Cullinan Oncology, Inc. (NASDAQ:CGEM)
Latest P/E Ratio: 4.98
Cullinan Oncology, Inc. (NASDAQ:CGEM) is an American firm headquartered in Cambridge, Massachusetts. It primarily develops cancer treatments for cancers of the lung, lymphoma, and tumor.
As of December 2022, 18 of the 943 hedge funds surveyed by Insider Monkey had invested in Cullinan Oncology, Inc. (NASDAQ:CGEM). The firm's largest shareholder in our database is Mpm Capital's BioImpact Capital which owns 7.6 million shares that are worth $80 million.
Cullinan Oncology, Inc. (NASDAQ:CGEM) joins Catalyst Biosciences, Inc. (NASDAQ:CBIO), AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX), and Chimerix, Inc. (NASDAQ:CMRX) in our list of cheap healthcare stocks.
11. Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA)
Latest P/E Ratio: 4.25
Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA) is a Bermuda based biotechnology firm. It develops treatments for heart diseases, arteritis, skin problems, and immune system disorders.
By the end of December 2022, 19 of the 943 hedge funds polled by Insider Monkey had bought Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA)'s shares. The firm's largest investor is Julian Baker and Felix Baker's Baker Bros. Advisors with a $41 million stake.
10. Sensus Healthcare, Inc. (NASDAQ:SRTS)
Latest P/E Ratio: 3.57
Sensus Healthcare, Inc. (NASDAQ:SRTS) is an American firm that is headquartered in Germantown, Maryland. It manufactures and sells healthcare products that are used by diabetics to monitor their blood glucose levels.
10 of the 943 hedge funds part of Insider Monkey's Q4 2022 survey had bought a stake in Sensus Healthcare, Inc. (NASDAQ:SRTS). Out of these, the company's largest investor is Jim Simons' Renaissance Technologies which owns 178,734 shares that are worth $1.3 million.
9. BioNTech SE (NASDAQ:BNTX)
Latest P/E Ratio: 3.01
BioNTech SE (NASDAQ:BNTX) is a German biotechnology company that gained fame for its coronavirus vaccine. It also makes treatments for several cancers such as those of the lungs, head, skin, and neck.
Insider Monkey took a look at 943 hedge fund portfolios for last year's final quarter and found out that 34 had invested in BioNTech SE (NASDAQ:BNTX). Out of these, Philippe Laffont's Coatue Management is the company's largest investor through a $92 million stake.
8. Assertio Holdings, Inc. (NASDAQ:ASRT)
Latest P/E Ratio: 2.91
Assertio Holdings, Inc. (NASDAQ:ASRT) is a pharmaceutical firm headquartered in Lake Forest, Illinois. The firm provides treatments for a variety of diseases such as arthritis, seizures, migraines, and other health disorders.
As of December 2022, 13 of the 943 hedge funds polled by Insider Monkey had bought the company's shares. Assertio Holdings, Inc. (NASDAQ:ASRT)'s largest investor in our database is Israel Englander's Millennium Management which owns 940,574 shares that are worth $4 million.
7. Retractable Technologies, Inc. (NYSE:RVP)
Latest P/E Ratio: 1.97
Retractable Technologies, Inc. (NYSE:RVP) is an American medical devices manufacturer operating out of Little Elm, Texas. Its products include syringes, blood collection products, and catheters.
By the end of 2022's fourth quarter, five of the 943 hedge funds polled by Insider Monkey had held the firm's shares. Retractable Technologies, Inc. (NYSE:RVP)'s largest hedge fund investor is Israel Englander's Millennium Management which owns 173,774 shares that are worth $285,000.
6. Aptevo Therapeutics Inc. (NASDAQ:APVO)
Latest P/E Ratio: 1.62
Aptevo Therapeutics Inc. (NASDAQ:APVO) is a biotechnology company based in Seattle, Washington. It develops tumor and cancer treatments, as well as those that enable existing medicines to work better.
Insider Monkey dug through 943 hedge fund portfolios for 2022's December quarter and found out that three had bought Aptevo Therapeutics Inc. (NASDAQ:APVO)'s shares. Out of these, Ryan Tolkin (Cio)'s Schonfeld Strategic Advisors is the firm's largest investor. It owns 142,100 shares that are worth $329,672.
AcelRx Pharmaceuticals, Inc. (NASDAQ:ACRX), Aptevo Therapeutics Inc. (NASDAQ:APVO), Catalyst Biosciences, Inc. (NASDAQ:CBIO) and Chimerix, Inc. (NASDAQ:CMRX) are some great and cheap healthcare stocks.
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Disclosure: None. 12 Cheap Healthcare Stocks to Buy in 2023 is originally published on Insider Monkey.