On July 14, Emily Field, the head of European pharma research at Barclays, appeared on CNBC to discuss which drug makers would be most impacted by 30% US tariffs on EU imports. Field thinks that it is challenging to identify the most impacted companies due to their intricate and undisclosed supply chains. In a conversation regarding the European pharmaceutical companies lobbying the US administration for similar carve-outs, especially given President Trump’s suggestion of tariffs as high as 200% on pharmaceutical imports, Field stated that there haven’t been any country-specific requests for carve-outs. However, she observed that several European companies have made substantial announcements about manufacturing investments in the US.

She also mentioned that these companies are collaborating with the administration on the most favored nation drug pricing policy. Field believes that these efforts are interconnected and aim for a deal between the industry and the administration that would be mutually beneficial, potentially involving a combination of tariffs and drug pricing policies. She also clarified that the pharmaceutical sector is excluded from the current country-specific tariffs, which she suggested might be a reason why the European healthcare index was outperforming the broader European index on that day. She explained that a Section 232 investigation by the Commerce Department is underway, and the results, which will determine sector-specific tariffs, are expected by the end of the month. Before the President announced a potential 200% tariff, most expectations were around 25%. However, the industry’s consistent response has been that tariffs would negatively impact patients by potentially leading to drug shortages.

That being said, we’re here with a list of the 10 best mid-cap pharma stocks to buy.

Methodology

We sifted through the Finviz stock screener to compile a list of the top pharma stocks that were trading between $2 billion and $10 billion as of July 22. We then selected the 10 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Best Mid Cap Pharma Stocks to Buy

10. LivaNova (NASDAQ:LIVN)

Market Capitalization as of July 22: $2.35 billion

Number of Hedge Fund Holders: 40

LivaNova (NASDAQ:LIVN) is one of the best mid cap pharma stocks to buy. Earlier in June, LivaNova announced the completion of its CORE-VNS study, which is a significant real-world evidence evaluation of its VNS Therapy device for individuals with epilepsy. This add-on treatment is designed to reduce seizure frequency in patients aged four and older who experience drug-resistant epilepsy/DRE and partial-onset seizures.

The study collected data from over 800 participants across 61 sites globally and generated final 36-month data confirming the therapy’s early and sustained effectiveness on severe focal seizures in both pediatric and adult patients with DRE. The full 36-month CORE-VNS study results are expected to be published later in 2025. One finding from the study highlighted the therapy’s impact on focal onset seizures with impaired awareness/FIA, identified as the most disabling seizure type for the majority of subjects across all ages.

The study also showed benefits for focal to bilateral tonic-clonic/FBTC seizures. The positive effects of VNS Therapy were observed as early as 3 months post-implantation, with continued reductions in both FIA and FBTC seizures at subsequent 12, 24, and 36-month visits. The CORE-VNS study maintained a high patient retention rate of 82% throughout the 3-year follow-up period.

LivaNova (NASDAQ:LIVN) is a medical technology company that designs, develops, manufactures, markets, and sells products and therapies for neurological and cardiac conditions worldwide.

9. Protagonist Therapeutics Inc. (NASDAQ:PTGX)

Market Capitalization as of July 22: $3.40 billion

Number of Hedge Fund Holders: 40

Protagonist Therapeutics Inc. (NASDAQ:PTGX) is one of the best mid cap pharma stocks to buy. On July 21, Protagonist Therapeutics announced that Johnson & Johnson (NYSE:JNJ) submitted a New Drug Application/NDA to the US FDA for icotrokinra. This submission seeks the first approval for icotrokinra, which is a first-in-class investigational targeted oral peptide, for the treatment of adults and pediatric patients 12 years of age and older with moderate to severe plaque psoriasis.

Icotrokinra is designed to selectively block the IL-23 receptor, which drives inflammation in plaque psoriasis and potentially other IL-23-mediated diseases. Icotrokinra was jointly discovered and is being developed under a license and collaboration agreement between Protagonist and Johnson & Johnson. The NDA filing is supported by an extensive data package from 4 pivotal Phase 3 studies within the ICONIC clinical development program: ICONIC-LEAD, ICONIC-TOTAL, ICONIC-ADVANCE 1, and ICONIC-ADVANCE 2.

Icotrokinra met all primary and co-primary endpoints across these studies and showed significant skin clearance and a favorable safety profile as a once-daily pill for adults and pediatric patients aged 12 and older with moderate-to-severe plaque psoriasis. Notably, ICONIC-ADVANCE 1 and 2 showed icotrokinra’s superiority to deucravacitinib.

Protagonist Therapeutics Inc. (NASDAQ:PTGX) is a biopharmaceutical company that develops peptide therapeutics for hematology and blood disorders, and inflammatory and immunomodulatory diseases.

Johnson & Johnson (NYSE:JNJ) researches, develops, manufactures, and sells various products in the healthcare field worldwide.