In stock investing, it's easy to focus on big names and blue-chip companies since they are frequently reported in financial media. Conversely, smaller companies, but with promising businesses, tend to be ignored. The latter have smaller market capitalizations and usually trade at more affordable per-share prices -- often for less than $25 a share. Unfortunately, you just have to look a little harder to unearth such solid investment opportunities.

Three such businesses in the pharma and biotech industries are Ironwood Pharmaceuticals (NASDAQ: IRWD), Exelixis (NASDAQ: EXEL), and Editas Medicine (NASDAQ: EDIT). While these may not be household names, all three have promising drug therapies, either in the market or in the pipeline. With market caps under $6 billion, all three trade at less than $25 a share. Two of these healthcare companies are profitable, while the third one's long-term potential makes it worth a second look.

Ironwood specializes in generic and specialty drugs that focus on areas of unmet need, such as irritable bowel syndrome (IBS), vascular and fibrotic diseases and hyperuricemia (high uric acid level) from uncontrolled gout.

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Source Fool.com