In this article, we will look at the 10 Best Performing Pharma Stocks So Far in 2025.
What’s Going on in the Pharma Sector?
On February 20, Jared Holz, Mizuho healthcare sector strategist, appeared on ‘Squawk Box’ to discuss the potential challenges and opportunities the pharmaceutical industry may face under the new Trump administration. Talking about the pharma’s agenda in Washington, where the big names of the pharma industry were set to meet with President Trump on February 20, Holz said that while it is tough to talk about the valuation of pharma companies, the significance of the meeting is to have a sort of collaborative effort between the industry and the government to see where they can move things over time. The stocks have exhibited either a little bit or a lot of worry over the RFK front, the United States Secretary of Health and Human Services. This was based on the nomination made last year, along with the comments made by either him or other appointees to this government.
Looking at the pharma and biotech sector, Holz opined that much of the underperformance of the past few years can be attributed to the nebulousness surrounding policies. The industry is now facing the current administration, which is much more apt to be rogue in terms of policy by many accounts. That has put a lid on the subsectors and their performance in the industry. He said that at some point, the pharma industry will thaw. While he isn’t sure which factors could potentially lead to this thawing, he is sure about the outcome, as there is likely to be a more definitive strategy and plan for how things would go in the industry. The February 20 meeting of the pharma industry’s biggest lobbying group with President Trump could be a factor behind this potential outcome.
We recently discussed the healthcare sector and its dynamics in the stock market in a recently published article on the 10 Best Performing Healthcare Stocks So Far in 2025. Here is an excerpt from the article:
“Despite the ongoing craze surrounding the GLP-1 obesity drugs, the healthcare sector was a lagger last year. On January 3, Jared Holz, Mizuho Securities America’s healthcare sector strategist, appeared on CNBC’s ‘Squawk on the Street’ to talk about the healthcare sector’s outlook in 2025. While he anticipates another year of underperformance for the sector, he also believes that healthcare has “been so bad, maybe it’s gonna be good” in 2025.
Holz further said that the healthcare sector presents a calamity since there aren’t a lot of easy spaces in the domain. Other industry verticals, such as technology and financials, are well set up. Healthcare, in contrast, appears to have several variables in place, and most of them are not positive. However, he believed that the MedTech sector provides a sort of safety net in such a tumultuous sector.”
Where Does India Come in With Trump’s Tariffs?
On February 13, Ramesh Swaminathan, Global CFO of pharmaceutical company Lupin, appeared on CNBC to talk about where India comes in, in the materialization and effects of Trump’s tariffs. He warned that the tariffs may deny a number of American citizens access to critical medications, as a substantial share of these pharmaceutical drugs comes from India. According to CNBC, US imports of pharmaceutical products totaled $176 billion from overseas and $6 billion from China in 2023.
Swaminathan said that since nearly 45% to 50% of the pharmaceuticals sold in America are of Indian origin, the tariffs will undoubtedly impact the common person. However, since there are several reciprocal tariffs in the works, it is difficult to understand what ultimately would happen in the industry, and a number of scenarios are open for discussion.
With these trends in view, let’s look at the 10 best-performing pharma stocks so far in 2025.
A closeup of pills in a pharmacy, representing the high quality medications of the company.
Our Methodology
We used Finviz to screen pharma stocks and looked at their year-to-date (YTD) performance, as of February 20, 2025, to select the best performing stocks. We also included the number of hedge fund holders for each stock as of Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of year-to-date performance.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
10 Best Performing Pharma Stocks So Far in 2025
10. Royalty Pharma Plc (NASDAQ:RPRX)
YTD Performance: 30.05%
Number of Hedge Fund Holders: 39
Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies. The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators. Royalty Pharma Plc’s (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Novartis’ Promacta, Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and others.
The company delivered $2.8 billion in Portfolio Receipts for fiscal year 2024, at the high end of its guidance range. This reflects a 13% growth, significantly exceeding its initial guidance of 5% to 9%. In 2025, Royalty Pharma Plc (NASDAQ:RPRX) expects Portfolio Receipts of $2.9 billion to $3.05 billion. It has added royalties on AD therapy to its portfolio, including four development space therapies.
The company is seeing positive news across its portfolio, including the FDA approval of Voranigo for brain cancer, Tremfya for ulcerative colitis, and Cobenfy for schizophrenia. It deployed capital of $2.8 billion to further broaden its portfolio, along with $230 million for share repurchases. Its Board recently authorized a new $3 billion share repurchase plan, and Royalty Pharma Plc (NASDAQ:RPRX) intends to repurchase $2 billion in 2025. The company ranks tenth on our list of the 10 best performing pharma stocks so far in 2025.
Patient Capital Opportunity Equity Strategy stated the following regarding Royalty Pharma plc (NASDAQ:RPRX) in its Q2 2024 investor letter:
“While Royalty Pharma plc (NASDAQ:RPRX) is in the healthcare space, it is more like an investment firm that buys royalty assets in the healthcare space. The company has an extremely strong track record, running the business for over 20 years as a private fund before bringing it public. The market opportunity for external royalty funding has only grown as early-stage start-ups need funding and legacy players are looking to lower their debt levels. We think Royalty Pharma is perfectly positioned as the partner of choice. The company is disciplined, maintaining deal internal rate of returns (IRRs) in the low-teens despite the higher interest rate environment. We think as the company continues to deliver as a public company, the market will start paying attention.”
9. Travere Therapeutics, Inc. (NASDAQ:TVTX)
YTD Performance: 33.75%
Number of Hedge Fund Holders: 39
Travere Therapeutics, Inc. (NASDAQ:TVTX) is a biopharmaceutical company that identifies, develops, and delivers therapies for rare kidney and metabolic diseases. Its product, FILSPARI (sparsentan), reduces proteinuria in individuals with primary IgAN at risk of rapid disease progression.
The company’s commercial products, Thiola and Thiola EC, treat cystinuria, a rare genetic cystine transport disorder. Investors are bullish on the stock as Travere Therapeutics, Inc. (NASDAQ:TVTX) recently announced the successful completion of its Type C meeting with the FDA and plans to submit a supplemental New Drug Application (sNDA) seeking traditional approval of filspari for focal segmental glomerulosclerosis (FSGS), a rare kidney disorder. The sNDA is expected to be submitted around the end of the first quarter of 2025.
Since there are currently no approved medicines for this progressive and rare kidney disorder, Filspari could become the first and only medicine to treat FSGS if approved, and thus has immense potential. 39 hedge funds hold stakes in Travere Therapeutics, Inc. (NASDAQ:TVTX) as of fiscal Q3 2024, and it ranks ninth on our list.
8. Beam Therapeutics Inc. (NASDAQ:BEAM)
YTD Performance: 34.29%
Number of Hedge Fund Holders: 35
Beam Therapeutics Inc. (NASDAQ:BEAM) is a biotechnology company that develops precision genetic medicines through base editing, a technology that allows efficient and predictable single base changes at targeted genomic sequences. The company’s lead programs focus on sickle cell disease and alpha-1 antitrypsin deficiency. Beam Therapeutics Inc. (NASDAQ:BEAM) is advancing programs in other genetic diseases as well, along with oncology and immunology. Its primary programs include BEAM-101, Engineered Stem Cell Antibody Paired Evasion (ESCAPE), BEAM-302, BEAM-301 and BEAM-201.
In June, the company attained IND clearance for its second in-vivo program, BEAM-301, which treats glycogen storage disease 1a (GSD1a). Since then, its team has been advancing BEAM-301 into the clinic, with site activation underway and patient dosing expected to commence in early 2025.
Beam Therapeutics Inc. (NASDAQ:BEAM) also exhibited strong execution across its priority hematology and liver genetic disease programs in fiscal Q3 2024, with progress in patient enrollment, clinical site activation, and dosing. It is entering 2025 at a significant inflection point in the company’s evolution, having advanced four programs into the clinic, established clinical differentiation for base editing with its lead sickle cell disease program, and prioritized two high-value core franchises. As of September 30, 2024, Beam Therapeutics Inc. (NASDAQ:BEAM) has cash, cash equivalents, and marketable securities worth $925.8 million.
7. Corcept Therapeutics Incorporated (NASDAQ:CORT)
YTD Performance: 35.52%
Number of Hedge Fund Holders: 29
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a biopharmaceutical company that develops and commercializes therapies that adjust the effects of cortisol, a hormone that regulates various bodily functions. The company’s flagship product, Korlym, is FDA-approved for treating Cushing’s syndrome, a disorder caused by excessive cortisol production.
In Q3 2024, the company reported revenue of $182.5 million, reflecting a 48% year-over-year increase. This growth was attributed to increased physician awareness of hypercortisolism and a growing number of patients receiving treatment with Korlym, the first medication approved by the FDA to serve patients with endogenous hypercortisolism. Its net income reached $47.2 million in the quarter, compared to $31.4 million in the same quarter last year. Management expects its revenue growth to continue, increasing its 2024 revenue guidance to $675 million to $700 million.
Corcept Therapeutics Incorporated’s (NASDAQ:CORT) next-generation drug candidate, relacorilant, is further supporting this growth momentum. Relacorilant is a selective cortisol regulator that has demonstrated promising results in two pivotal Phase 3 trials (GRACE and GRADIENT) for Cushing’s syndrome, and has potential to develop into a profitable drug. The company ranks seventh on our list of the 10 best-performing pharma stocks so far in 2025.
ClearBridge Small Cap Strategy stated the following regarding the company in its Q3 2024 investor letter:
“Another top contributor in health care, Corcept Therapeutics Incorporated (NASDAQ:CORT), saw its stock rise in the third quarter after strong earnings results and increased guidance for sales of Korlym, a hyperglycemia drug for adults with Cushing’s syndrome, which investors had been concerned would be vulnerable to the launch of a competitor’s generic version late last year. The company has seen added tailwinds from anticipation surrounding its next-generation version of the drug, which has fewer side effects, and is expected to release phase 3 data later this year and potentially file for FDA approval in 2025.”
6. BridgeBio Pharma, Inc. (NASDAQ:BBIO)
YTD Performance: 35.71%
Number of Hedge Fund Holders: 48
BridgeBio Pharma, Inc. (NASDAQ:BBIO) is a commercial-stage biopharmaceutical company that discovers, creates, tests and delivers transformative medicines to treat patients suffering from genetic diseases and cancers. Analysts are bullish on the stock after the late 2024 FDA approval of its leading drug acoramidis, now branded as Attruby.
Attruby treats transthyretin amyloid cardiopathy (ATTR-CM), a rare but life-threatening heart condition. Analysts expect the drug to attain blockbuster status by 2030. As of February 17, 2025, 1,028 unique patient prescriptions for the drug have been written by 516 unique prescribers since its FDA approval.
BridgeBio Pharma, Inc. (NASDAQ:BBIO) has another potential drug with blockbuster sales potential: infigratinib. Infigratinib is a drug in the pivotal-stage trial indicated for achondroplasia (short stature), and its top-line data is expected by mid-2025. BridgeBio Pharma, Inc. (NASDAQ:BBIO) ended fiscal Q4 2024 with $681 million in cash, cash equivalents, and short-term restricted cash. It expects to receive $105 million in regulatory milestones in the first half of 2025 from acoramidis’ Europe and Japan approvals.
5. Verona Pharma plc (NASDAQ:VRNA)
YTD Performance: 37.31%
Number of Hedge Fund Holders: 42
Verona Pharma plc (NASDAQ:VRNA) is a UK-based biopharmaceutical company that develops and commercializes therapeutics for treating respiratory diseases with unmet medical needs. The FDA’s June 2024 approval of its drug Ohtuvayre to treat chronic obstructive pulmonary disease was a significant catalyst for the company.
Analysts project this blockbuster drug’s sales potential to top $1 billion by 2029. Right now, Verona Pharma plc (NASDAQ:VRNA) is in the early stages of disseminating the treatment, with net sales of around $36 million in fiscal Q4 2024, according to the company’s preliminary earnings release. CEO David Zaccardelli was of the view that the drug is off to an “exceptionally strong start,” with more than 3,500 unique prescribers and over 16,000 prescriptions filled in 2024.
In addition, approximately 45% of Tier 1 healthcare professionals prescribed Ohtuvayre, reflecting its potential. Verona Pharma plc (NASDAQ:VRNA) takes the fifth spot on our list of the 10 best-performing pharma stocks so far in 2025.
4. Axsome Therapeutics, Inc. (NASDAQ:AXSM)
YTD Performance: 49.09%
Number of Hedge Fund Holders: 38
Axsome Therapeutics, Inc. (NASDAQ:AXSM) is a commercial-stage biopharmaceutical company that develops and delivers therapies for central nervous system (CNS) conditions with limited treatment options. Its two commercial products and development programs include Auvelity and Sunosi. Auvelity treats major depressive disorder (MDD), and Sunosi is an oral medication for the treatment of excessive daytime sleepiness (EDS) in patients with narcolepsy or obstructive sleep apnea.
Apart from Auvelity and Sunosi, the company’s pipeline features five innovative late-stage product candidates in development, along with nine indications across psychiatry and neurology. Axsome Therapeutics, Inc. (NASDAQ:AXSM) has strong financials. It reported quarterly product revenue of over $100 million for the first time in fiscal Q3 2024. This quarterly performance translates to an annual revenue rate of around $420 million. The company reported these results just three quarters into its second full year as a commercial therapy.
Axsome Therapeutics, Inc.’s (NASDAQ:AXSM) late-stage pipeline positions it to deliver new medicines across therapeutic areas, impacting over 150 million patients in the US. If developed successfully, this portfolio holds the potential to provide more than $16 billion in peak sales.
3. Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX)
YTD Performance: 50%
Number of Hedge Fund Holders: 16
Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) is an emerging clinical-stage biotech firm that uses AI, bioinformatics, experimental biology, and automation to industrialize drug discovery for various diseases. It also collaborates with leaders in the drug discovery space to reduce timelines and costs for identifying and optimizing lead candidates.
The company’s Recursion Operating System (OS), a platform built across diverse technologies, allows it to map and navigate trillions of chemical and biological relationships within the Recursion Data Universe. It has several clinical programs, including REC-994, REC-2282, REC-4881 and REC-3964.
Investors are bullish on Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) as Nvidia Corp. held on to its shares in the company while disposing of stocks in other companies. Nvidia Corp recently submitted regulatory filings showing ownership reduction and increases in various stocks, retaining its 7.7-million holdings in Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX). This news instilled optimistic sentiments in the company’s future performance. The company ranks third on our list of the 10 best performing pharma stocks so far in 2024.
2. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
YTD Performance: 65.65%
Number of Hedge Fund Holders: 36
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is a commercial-stage biopharmaceutical company focusing on cancer and severe rare diseases. OGSIVEO (nirogacestat) is its FDA-approved therapy for treating progressing desmoid tumors in the US. The company also has a diversified targeted therapy pipeline covering hematological cancers and solid tumors, with programs ranging from preclinical development to advanced clinical trials.
OGSIVEO is driving the company’s growth, with robust demand from both new and existing patients. SpringWorks Therapeutics, Inc.’s (NASDAQ:SWTX) market research shows that it has only reached a small portion of people with desmoid tumors who can potentially benefit from OGSIVEO, reflecting significant potential in the domain.
Due to the strong commercial execution of the OGSIVEO launch in the US, SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) reported $61.5 million in net product revenue for fiscal Q4 2024 and $172.0 million for the entire year. The company also has $461.9 million in total preliminary cash, cash equivalents, and marketable securities as of December 31, 2024. Management expects its cash position to fund operations through profitability, which the company intends to attain in the first half of 2026.
On February 11, Reuters reported that Merck, the German healthcare group, and SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) are in advanced talks for a potential merger. However, no legally binding agreement has been signed between the two companies yet, and there is no certainty that the acquisition will materialize.
1. Akero Therapeutics, Inc. (NASDAQ:AKRO)
YTD Performance: 80.61%
Number of Hedge Fund Holders: 30
Akero Therapeutics, Inc. (NASDAQ:AKRO) is a clinical-stage company that develops transformational treatments for patients with serious metabolic diseases that have high unmet medical needs, such as metabolic dysfunction-associated steatohepatitis (MASH), which does not have any approved therapies. The company’s primary product is efruxifermin (EFX), which treats MASH and is undergoing phase 3 of clinical trials. Efruxifermin (EFX) is an analog of fibroblast growth factor 21, an endogenously expressed hormone that regulates carbohydrates, lipids, and proteins while offering protection against cellular stress.
The Phase 2b study of the drug was well-received by participants, with no deaths and only minor adverse effects reported, causing the stock to surge in January. EFX has the potential to become a first-in-class therapy for MASH-induced cirrhosis, which is causing investors to be bullish on the company.
Akero Therapeutics, Inc. (NASDAQ:AKRO) also completed an upsized public offering in January, raising $402.5 million by selling 6.4 million shares at $48 each. 30 hedge funds hold stakes in the company as of Q3 2024.
Overall, AKRO ranks first among the 10 best performing pharma stocks so far in 2025. While we acknowledge the potential of pharma stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AKRO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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