In this article, we will be taking a look at the 7 most profitable biotech stocks to buy right now.
With improved market conditions, innovative breakthroughs, and more investor interest, the biotechnology industry is gaining new traction. The sector has bounced back from a difficult 2024 and is set to grow significantly, thanks to developments in AI-driven drug discovery, personalized medicine, and the rising demand for biologics. The global biotech market was expected to grow by a robust 13%, from $483.0 billion in 2024 to $546.0 billion in 2025, according to MarketsandMarkets. The sector’s resilience and growth potential are demonstrated by this expansion.
One of the main causes of this upturn is the expected change in the Federal Reserve’s interest rate policies. Because biotech involves expensive R&D and clinical testing, it is susceptible to shifting rate patterns. According to Genetic Engineering and Biotechnology News, lower rates increase the amount of cash available, which aids biotech companies in growing, attracting venture capital, and accelerating drug development. Analysts predict that a rate decline might free up billions of dollars in investment money set aside for nascent biotech companies seeking stable funding.
The global biotechnology sector is undergoing transformative growth in 2025, driven by scientific breakthroughs and shifting market dynamics. Key trends, treatments, financial metrics, and the US regulatory landscape significantly impact the industry.
Key Trends Shaping 2025’s Biotech Landscape
Genetic engineering is becoming a dominant force in biotech, with CRISPR-based therapies like Casgevy—approved for sickle cell disease and beta-thalassemia—expanding into polygenic disorders such as diabetes. Synthetic biology is also projected to experience tremendous growth, with expectations to reach $100 billion by 2030, enabling sustainable pharmaceutical and biofuel production. Another important development is AI-driven drug discovery, which has reduced drug discovery costs by 30-50% while accelerating timelines. Startups are increasingly leveraging machine learning for precision oncology and protein design.
The RNA therapeutics sector is also booming, particularly following the success of mRNA vaccines, which paved the way for RNA interference (RNAi) therapies like Fitusiran. Fitusiran has shown an impressive 89.9% reduction in bleeding events in hemophilia A/B patients. Regenerative medicine is also advancing, with innovations such as 3D bioprinting and CAR-T cell therapies entering clinical trials for organ repair and cancer treatment. The regenerative medicine market is expected to reach $37.27 billion by 2031.
Biotech Breakthroughs Fuel Market Growth
Several biotech therapies are showing significant efficacy across various medical conditions, driving both medical advancements and investor enthusiasm. CRISPR-Cas9 treatments, aimed at genetic disorders, have over 1,200 clinical trials ongoing. mRNA vaccines, used for infectious diseases and cancer, have already administered more than 29 million doses globally by 2024. Imdelltra, a treatment for small cell lung cancer, has achieved a 40% objective response rate. It is estimated that 90,000 patients globally use gene and cell therapies annually. The biotech sector continues to thrive with groundbreaking treatments, including Imdelltra, which is projected to generate $2.1 billion in sales by 2030. Meanwhile, analysts at William Blair foresee significant potential for zanzalintinib, estimating it could reach $5 billion in net U.S. sales by 2033. This promising drug is expected to target multiple indications, such as renal cell carcinoma, colorectal cancer, neuroendocrine tumors, and head-and-neck cancer, further solidifying its blockbuster status.
As these groundbreaking innovations reshape the medical landscape, they are also fueling a surge in investor interest in biotech equities, positioning the industry as a high-growth space despite its inherent volatility. Leading investment banks, including Goldman Sachs, see biotech as an “undervalued opportunity” with strong fundamentals, improved clinical outcomes, and favorable regulations. JPMorgan analysts anticipate a rebound in biotech funding, with signs of stability in manufacturing and research. Declining interest rates could also reopen the IPO window for biotech firms. Meanwhile, innovations in gene editing, AI-powered drug discovery, and precision medicine are driving biotech’s expansion, revolutionizing treatments for genetic disorders, autoimmune diseases, and cancer.
A biotechnologist in a lab coat discussing a therapeutic antibody with a colleague.
Our Methodology
For our methodology, we screened for biotech companies with a market capitalization of over $10 billion and a net income exceeding $100 million. From that group, we identified the stocks with the highest net income and ranked them accordingly.
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Here is our list of the 7 most profitable biotech stocks to buy right now.
7. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
Latest Net Income: $426.86 million
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and markets specialized therapies for rare genetic diseases, focusing on enzyme replacement treatments and other biopharmaceuticals. The company is renowned for its dedication to rare diseases, as it has successfully brought eight cutting-edge drugs to market, including treatments for achondroplasia, severe hemophilia A, and lysosomal storage diseases.
BioMarin Pharmaceutical Inc.’s (NASDAQ:BMRN) Q4 2024 financial results showed strong growth in several crucial areas. Its total sales increased by 18% to $2.85 billion for the year, with Q4 revenue rising 16% to $747 million. Enzyme therapies generated more than $1.9 billion, a 12% rise from 2023, while VOXZOGO sales increased 56% to $735 million as a result of increased acceptance for achondroplasia.
The company’s profitability significantly improved, as seen by the non-GAAP operating margin, which rose to 28.6% for the year and 31.1% in Q4. The primary drivers of the 88% increase in Q4 profits per share (EPS) to $0.92 and the 69% increase in EPS to $3.52 were revenue growth and operational efficiency. Furthermore, operating cash flow rose by an astounding 260% to $573 million, providing investors with extra funds for future initiatives.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) anticipates revenue to reach between $3.1 billion and $3.2 billion in 2025, assuming a 10% growth rate. With EPS between $4.20 and $4.40 and non-GAAP operating margins between 32% and 33%, margins are anticipated to keep growing, indicating continued efficiency and profitability. Many experts rank BMRN as one of the most profitable stocks in the biotech industry due to its solid financial performance and potential for future growth.
The company is working on its therapeutic pipeline in addition to its financials; early clinical data for BMN 333 and BMN 351 (Duchenne Muscular Dystrophy) are expected later this year. These adjustments could encourage more growth and benefit the stock.
6. Exelixis, Inc. (NASDAQ:EXEL)
Latest Net Income: $521.27 million
Exelixis, Inc. (NASDAQ:EXEL) is focused on developing targeted cancer treatments. It specializes in molecular therapies that focus on hard-to-treat cancers by targeting specific genetic mutations. In addition to royalties, licensing agreements, and research partnerships, the company makes money from its main medications, CABOMETYX, COMETRIQ, and COTELLIC.
Exelixis, Inc. (NASDAQ:EXEL) has been engaged in immunology research since the early 2000s. A new role for the PGRP-LC gene in Drosophila immunity was discovered during one of their collaborations in 2002, suggesting that human immune systems might use comparable mechanisms. A 2022 agreement with BioInvent that concluded in 2024 and a 2024 collaboration with Merck to test zanzalintinib in combination with Merck’s immunotherapies for head and neck cancer and renal cell carcinoma were among the immuno-oncology collaborations the company pursued. In addition to conducting clinical trials like the STELLAR-001 and STELLAR-305 trials to explore combinations of its compounds with immunotherapies, Exelixis, Inc. (NASDAQ:EXEL), one of the most profitable biotech stocks in the industry, is growing its biotherapeutics pipeline with a focus on tyrosine kinase inhibitors and cutting-edge immuno-oncology therapies.
In the fourth quarter of 2024, Exelixis, Inc. (NASDAQ:EXEL) reported strong financial performance with total revenues of over $567 million. This was mostly because the U.S. cabozantinib (Cabo) franchise net product revenues increased by 20% year over year to $515 million. Global Cabo revenues for the fourth quarter were nearly $690 million, with full-year revenues of $2.5 billion. The company also got $51.5 million in cooperation revenues, primarily from royalties from the sale of cabozantinib. Operating expenses totaled $403 million, while the company’s GAAP net income was $139.9 million. By the end of 2024, the company had $1.75 billion in cash and marketable securities, and it had also repurchased $656 million worth of shares. The growth indicates the ongoing need for its CABOMETYX treatment for renal cell cancer.
5. Argenx SE (NASDAQ:ARGX)
Latest Net Income: $833.04 million
Argenx SE (NASDAQ:ARGX) stands fifth among the most profitable stocks. It is a biotechnology company specializing in antibody-based therapies for autoimmune diseases and cancer. Its flagship product, VYVGART, treats conditions like myasthenia gravis and chronic inflammatory demyelinating polyneuropathy. What sets the company apart is its proprietary SIMPLE Antibody technology, which enhances therapeutic antibody functionality, enabling the development of innovative treatments that target immune system pathways.
Argenx SE (NASDAQ:ARGX) delivered strong financial results for Q4 2024 and the full year, reporting $737 million in product net sales for Q4 and $2.2 billion for the year. Total operating income reached $761 million in Q4 and $2.3 billion for the year, while net profit stood at $774 million in Q4 and $833 million for 2024. The company ended the year with a solid cash position of $3.4 billion.
Argenx SE (NASDAQ:ARGX) expanded its reach to over 10,000 patients globally across three approved indications, which was driven by a 98% year-over-year growth in product net sales. Its flagship product, VYVGART, has had a major impact on the treatment of generalized myasthenia gravis (gMG) and is seeing strong early adoption for chronic inflammatory demyelinating polyneuropathy (CIDP).
Looking ahead, the corporation is advancing its Vision 2030 strategy with ambitious goals: treating 50,000 patients, securing 10 labeled indications, and progressing five pipeline candidates to Phase 3. The company currently has 20 active clinical trials, including 10 Phase 3 and 10 Phase 2 studies, positioning it for sustained growth.
Argenx SE (NASDAQ:ARGX) expects 2025 to be its first profitable year, with projected R&D and SG&A expenses of $2.5 billion, reflecting its commitment to innovation. Regulatory progress continues, with a positive CHMP recommendation for the VYVGART pre-filled syringe in the EU and an FDA decision expected by April 10, 2025, potentially broadening market reach and improving treatment accessibility.
4. Royalty Pharma plc (NASDAQ:RPRX)
Latest Net Income: $858.98 million
Royalty Pharma plc (NASDAQ:RPRX) operates uniquely in the biotech industry by acquiring royalty interests in marketed or late-stage biopharmaceutical products rather than developing or marketing drugs. This model allows the company to provide capital to innovators while earning a percentage of future sales, typically ranging from 2% to 20%. By avoiding the risks and costs of drug development, the company benefits from successful pharmaceutical products through strategic investments.
At the upper end of its guidance range, Royalty Pharma plc (NASDAQ:RPRX)’s fiscal year 2024 portfolio receipts came to $2.8 billion. This represents a 13% increase, much beyond its original forecast of 5% to 9%. The business anticipates $2.9 billion to $3.05 billion in portfolio receipts in 2025. Its portfolio now includes four development space treatments and royalties on AD medication.
The FDA has approved Tremfya for ulcerative colitis, Cobenfy for schizophrenia, and Voranigo for brain cancer, among other favorable developments for the company’s portfolio. In addition to $230 million for share repurchases, it invested $2.8 billion to expand its holdings. A fresh $3 billion share repurchase plan was recently approved by its Board, and Royalty Pharma Plc (NASDAQ:RPRX) plans to buy back $2 billion of its shares 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.”
3. Genmab A/S (NASDAQ:GMAB)
Latest Net Income: $1.09 billion
Genmab A/S (NASDAQ:GMAB) develops innovative antibody-based therapies for cancer and other serious diseases. It is developing ground-breaking medicines in oncology and other fields with a portfolio of commercialized medications that includes EPKINLY, TEPKINLY, and Tivdak, as well as a strong pipeline that includes Epcoritamab and tisotumab vedotin.
The main sources of Genmab A/S (NASDAQ:GMAB)’s are its marketed medications, especially EPKINLY and TIVDAK. Strong adoption in the US and Japan helped EPKINLY reach $281 million in sales in 2024, including $78 million in Q4 alone. By the end of 2026, three crucial Phase 3 readouts are anticipated, and its potential peak sales are projected to surpass $3 billion. TIVDAK is the world standard of therapy for advanced cervical cancer, with sales of $131 million in 2024, including $38 million in Q4. In 2025, approvals are expected in Europe and Japan.
Sales of EPKINLY and TIVDAK are a significant part of the recurring revenues, which make up 95% of the total projected revenue, and they are responsible for 34% of the company’s anticipated revenue increase in 2025. As a result, Genmab is increasingly seen as one of the most profitable stocks in the biotech sector. In total, the marketed medicines category accounted for 29% of Genmab’s (NASDAQ:GMAB) 2024 revenue increase.
2. United Therapeutics Corporation (NASDAQ:UTHR)
Latest Net Income: $1.20 billion
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company specializing in treatments for rare and life-threatening diseases, primarily pulmonary arterial hypertension (PAH) and cardiovascular disorders. Its main drugs, Tyvaso, Orenitram, and Remodulin, are marketed to patients, hospitals, and specialized pharmacies.
In 2024, United Therapeutics Corporation (NASDAQ:UTHR) exceeded forecasts with record revenue and robust earnings. The business exceeded forecasts of $6.10 with earnings per share (EPS) of $6.19. The financial performance was aided by double-digit growth in important drugs such as Unituxin, Tyvaso, Remodulin, and Orenitram.
United Therapeutics Corporation (NASDAQ:UTHR)’s Tyvaso revenue grew 19% year-over-year to $4 million in Q4, while Orenitram saw a 28% increase to $108 million. Remodulin saw a 17% increase in global sales of $135 million, while Unituxin saw a 25% increase in sales, reaching a record $68 million. These profits demonstrate how well-positioned the company is in the market for treating rare disorders like pulmonary arterial hypertension (PAH).
United Therapeutics Corporation (NASDAQ:UTHR) improved its clinical pipeline in addition to growing financially. The first FDA-approved xenotransplantation trial for organ replacement was the uKidney clinical trial, for which the business obtained IND permission. Confidence in long-term growth and innovation is strengthened by capital allocation that is balanced between strategic investments, acquisitions, and shareholder returns through repurchase plans.
1. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Latest Net Income: $4.41 billion
The stock that tops our list of the most profitable stocks is Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). Its primary focus is on creating transformative medications for severe illnesses, such as cancer, inflammation, uncommon genetic disorders, and eye ailments. What makes the company unique is its state-of-the-art VelociSuite technology, which expedites the development of drugs and genetic medicines and helps turn scientific discoveries into useful treatments.
In the fourth quarter of 2024, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) reported $3.8 billion in revenue, a 10% increase over the same period the previous year. Over the course of the year, it generated $14.2 billion in sales and $1.4 billion in net profits. Its impressive 86% gross margin and $3.7 billion in free cash flow showed the company’s sound financial standing.
Key products like EYLEA, Libtayo, and Dupixent propelled the company’s growth. Dupixent continues to be a major success, treating over a million patients worldwide, and it may find new uses. Meanwhile, the company is creating new treatments for multiple myeloma and lymphoma that might boost its oncology market share.
Despite its successes, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) continues to confront challenges in the anti-VEGF market as the sales of EYLEA are being hampered by the increasing competition from biosimilars. While managing these expectations, the company must continue to focus on innovation and growth.
Overall, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) ranks first among the 7 most profitable biotech stocks to buy right now. While we acknowledge the potential of biotech companies, 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 REGN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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