Biotech is an exciting sector. Yet, investors must be willing to accept the risks that come with companies on the cutting edge of science and healthcare. No one knows for sure whether a groundbreaking therapeutic will pass clinical muster or a clinical trial will lead to commercialization. Companies that fail are relegated to the ash heap of history. Those that succeed can produce life-changing wealth.
To add a modicum of safety to the high-risk, high-reward endeavor of finding undervalued biotech stocks, the following names offer a discount based on traditional earnings metrics or GuruFocus’ proprietary calculation for fair market value. The underlying companies also bring other attributes to the table, such as balance sheet stability or strong income-statement performance.
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