In this article, we will be taking a look at the 12 Cheap Healthcare Stocks to Buy Now. Bausch Health Companies is one of them. Bausch Health Companies Inc. (NYSE:BHC), a global specialty pharmaceutical company, has recently gained attention as an undervalued player in healthcare due to strategic acquisitions and pipeline developments rather than financial trends alone. The company focuses on areas including eye health, gastroenterology, hepatology, neurology, and dermatology. It is among the cheap health ...

Core Viewpoint - The healthcare industry is currently facing significant challenges, with large-cap pharmaceutical companies particularly affected, leading to a poor performance compared to the market [2][3]. Group 1: Industry Challenges - The healthcare sector has only outperformed the market during downturns over the last decade, indicating a troubling trend [2]. - The current dynamics in the healthcare industry are described as the worst experienced in decades, with managed care and pharmaceuticals identified as the main contributors to market pressures [3]. Group 2: Investment Opportunities - A methodology was employed to identify cheap healthcare stocks, focusing on companies with a market capitalization above $2 billion and a forward P/E ratio below 15 [5]. - The article lists 12 healthcare stocks deemed attractive for investment, based on their valuation metrics and growth potential [6]. Group 3: Company Highlights - **Bausch Health Companies Inc. (NYSE:BHC)**: - Forward P/E Ratio: 1.45, recognized for strategic acquisitions and pipeline developments, particularly in hepatology [7]. - Recent acquisition of DURECT Corporation valued at $63 million upfront, with potential milestone payments of up to $350 million, enhancing its portfolio for alcoholic hepatitis [8]. - Key pipeline assets include larsucosterol and rifaximin SSD, with significant market potential in addressing hospitalizations for alcoholic hepatitis [9][10]. - **Organon & Co. (NYSE:OGN)**: - Forward P/E Ratio: 2.73, focused on women's health and biosimilars, expanding its market presence since spinning off from Merck [11]. - Recent FDA approvals for biosimilars BILDYOS and BILPREVDA, aimed at improving access to osteoporosis and bone cancer treatments [12]. - The company is pivoting towards biosimilars as a growth engine while maintaining focus on women's health and dermatology [13]. - **Viatris Inc. (NASDAQ:VTRS)**: - Forward P/E Ratio: 4.40, formed from the merger of Mylan and Pfizer's Upjohn division, focusing on generics and specialty pharmaceuticals [14]. - FDA approval of a generic iron sucrose injection, reflecting a strategic entry into the intravenous iron market with significant sales potential [15]. - Positive late-stage trial results for several pipeline assets, reinforcing the company's growth strategy and upcoming product launches [16][17].

Core Viewpoint - Bausch Health Companies Inc. has agreed to acquire DURECT Corp, focusing on the development of larsucosterol, a novel therapeutic molecule for alcoholic hepatitis, which currently lacks FDA or EMA approved treatments [1][2][3]. Group 1: Acquisition Details - Bausch Health will pay $1.75 per share in an all-cash transaction, totaling approximately $63 million, with potential milestone payments of up to $350 million [3]. - The acquisition is expected to close in the third quarter of 2025 [6]. Group 2: Clinical Development - A registrational Phase 3 program is planned to evaluate the safety and efficacy of larsucosterol for severe alcoholic hepatitis, with a primary endpoint of 90-day survival [3][4]. - The trial will be randomized, double-blind, placebo-controlled, and will incorporate feedback from the FDA [4]. Group 3: Complementary Programs - The acquisition complements Bausch Health's ongoing RED-C clinical program, which assesses rifaximin SSD for delaying the onset of hepatic encephalopathy hospitalization and all-cause mortality [5]. - Patient enrollment in two global Phase 3 studies for the RED-C program is complete, with results expected in early 2026 [5]. Group 4: Financial Context - Bausch Health is addressing its $21 billion debt, with a third due by 2027, and previously considered selling Bausch + Lomb Corp as part of this strategy [6]. - At the time of publication, Bausch Health's stock was down 0.36% at $6.87, while DURECT's stock rose 238.34% to $1.87 [6].