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.
A scientist in a laboratory holding a test tube filled with a glowing blue solution, representing the company’s nano-biopharmaceutical research and development.
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.
8. Exact Sciences Corporation (NASDAQ:EXAS)
Market Capitalization as of July 22: $9.38 billion
Number of Hedge Fund Holders: 41
Exact Sciences Corporation (NASDAQ:EXAS) is one of the best mid cap pharma stocks to buy. On July 9, Exact Sciences announced that its Oncodetect molecular residual disease/MRD test received Medicare coverage. The coverage was granted through the Centers for Medicare & Medicaid Services’/CMS Molecular Diagnostic Services Program/MolDX for serial use in patients with stage II, III, and resectable stage IV colorectal cancer/CRC.
The coverage extends to both adjuvant and recurrence monitoring settings over 5 years. The Medicare coverage for colorectal cancer addresses a substantial need, as more than 3 million Americans are eligible for MRD testing across various solid tumors.
The Oncodetect test is a highly sensitive, tumor-informed assay that empowers oncologists and patients with critical insights throughout their treatment journey. It is capable of tracking up to 200 circulating tumor DNA/ctDNA)variants and can detect signs of cancer recurrence up to 2 years earlier than traditional imaging methods alone.
Exact Sciences Corporation (NASDAQ:EXAS) provides cancer screening and diagnostic test products in the US and internationally. The company has license agreements with MAYO Foundation for Medical Education and Research and Johns Hopkins University.
7. Guardant Health Inc. (NASDAQ:GH)
Market Capitalization as of July 22: $5.67 billion
Number of Hedge Fund Holders: 43
Guardant Health Inc. (NASDAQ:GH) is one of the best mid cap pharma stocks to buy. On July 15, Guardant Health announced the enrollment of the first patient in the National Cancer Institute’s/NCI’s Vanguard Study. The 4-year study aims to enroll up to 24,000 participants to evaluate the feasibility of using multi-cancer detection/MCD tests in future randomized controlled trials.
Guardant’s Shield MCD test was selected for the study. The Shield MCD test was chosen for its overall performance in detecting 10 cancer types: lung, breast, colorectal, prostate, bladder, ovarian, pancreatic, esophageal, liver, and gastric. Data supporting its performance was presented at the 2025 American Society of Clinical Oncology/ASCO Annual Meeting in Chicago.
The Vanguard Study was initiated following review and approval by the US FDA as part of the NCI’s submission for an investigational device exemption/IDE. The Vanguard Study, conducted by the Cancer Screening Research, is enrolling individuals aged 45-75 who do not currently have cancer and have not received a cancer diagnosis in the past 5 years.
Guardant Health Inc. (NASDAQ:GH) is a precision oncology company that provides blood and tissue tests and data sets in the US and internationally.
6. Ionis Pharmaceuticals Inc. (NASDAQ:IONS)
Market Capitalization as of July 22: $6.65 billion
Number of Hedge Fund Holders: 43
Ionis Pharmaceuticals Inc. (NASDAQ:IONS) is one of the best mid cap pharma stocks to buy. On July 21, Ionis Pharmaceuticals announced that positive results from the Phase 3 OASISplus prospective switch study of donidalorsen in patients with hereditary angioedema/HA were published in The Journal of Allergy and Clinical Immunology/JACI In Practice.
Hereditary angioedema is a rare and potentially life-threatening genetic condition characterized by recurrent attacks of severe swelling in various parts of the body. Donidalorsen is an investigational RNA-targeted medicine designed to target prekallikrein/PKK, which plays a role in activating inflammatory mediators associated with acute HAE attacks.
The OASISplus switch cohort evaluated the safety and efficacy of donidalorsen, administered every four weeks, in patients who had previously been treated with other prophylactic treatments for at least 12 weeks. Results showed that patients were able to switch to donidalorsen without an increase in breakthrough attacks. Donidalorsen demonstrated a favorable safety profile and was well-tolerated.
Ionis Pharmaceuticals Inc. (NASDAQ:IONS) is a commercial-stage biotechnology company that provides RNA-targeted medicines in the US.
5. Lantheus Holdings Inc. (NASDAQ:LNTH)
Market Capitalization as of July 22: $4.95 billion
Number of Hedge Fund Holders: 43
Lantheus Holdings Inc. (NASDAQ:LNTH) is one of the best mid cap pharma stocks to buy. On July 22, Lantheus Holdings announced the completion of its acquisition of Life Molecular Imaging Ltd./LMI, which is a subsidiary of Life Healthcare Group Holdings Ltd. As a result of this acquisition, Dr. Ludger Dinkelborg, formerly CEO and Managing Director of LMI, has been appointed as the Head of Research and Development at Lantheus, effective August 1 this year.
In his new role, Dr. Dinkelborg will oversee Clinical Development, Regulatory Affairs, Clinical Operations, Program Management, and AI/Biomarkers Solutions, reporting directly to the CEO. This acquisition brings Neuraceq (florbetaben F18 injection) into Lantheus’s portfolio. Neuraceq is a globally approved F-18 PET imaging agent used to detect beta-amyloid plaques in adults being evaluated for Alzheimer’s disease and other causes of cognitive decline, as well as for selecting patients indicated for amyloid beta-directed therapy.
The FDA approved Neuraceq on June 23 this year. The transaction also provides Lantheus with a robust commercial infrastructure for Alzheimer’s disease radiodiagnostics, advanced R&D capabilities, and an established international presence. Important safety information regarding Neuraceq includes risks for image interpretation errors and other potential inaccuracies.
Lantheus Holdings Inc. (NASDAQ:LNTH) develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide.
4. Nuvalent Inc. (NASDAQ:NUVL)
Market Capitalization as of July 22: $5.86 billion
Number of Hedge Fund Holders: 43
Nuvalent Inc. (NASDAQ:NUVL) is one of the best mid cap pharma stocks to buy. On July 21, Nuvalent announced that the first patient had been dosed in ALKAZAR, which is its global Phase 3 randomized, controlled trial. The trial is evaluating neladalkib for TKI-naïve patients with advanced ALK-positive non-small cell lung cancer/NSCLC, comparing it against ALECENSA (alectinib), which is a front-line standard of care.
The ALKAZAR trial is designed to enroll ~450 TKI-naïve patients with advanced ALK-positive NSCLC. Patients will be randomized 1:1 to receive either neladalkib monotherapy or alectinib monotherapy. The primary endpoint for the trial is progression-free survival/PFS based on Blinded Independent Central Review/BICR.
Neladalkib is a novel brain-penetrant ALK-selective inhibitor specifically created to overcome the limitations of currently available ALK inhibitors. It is designed to remain active in tumors that have developed resistance to first, second, and third-generation ALK inhibitors, including those with single or compound treatment-emergent ALK mutations like G1202R.
Nuvalent Inc. (NASDAQ:NUVL) is a clinical-stage biopharmaceutical company that develops therapies for patients with cancer.
3. Akero Therapeutics Inc. (NASDAQ:AKRO)
Market Capitalization as of July 22: $4.07 billion
Number of Hedge Fund Holders: 45
Akero Therapeutics Inc. (NASDAQ:AKRO) is one of the best mid cap pharma stocks to buy. On July 16, AstraZeneca announced that its amyloidosis treatment, called anselamimab, failed to meet its primary endpoint in two late-stage Phase III trials, collectively known as Cardiac Amyloid Reaching for Extended Survival/CARES.
Anselamimab is an antibody that targets amyloid deposits to eliminate them. These global, randomized, double-blind, placebo-controlled multicenter trials were conducted by Alexion, which is AstraZeneca’s rare disease division, and enrolled 406 patients across 19 countries with Mayo stages IIIa and IIIb light chain (AL) amyloidosis. AL amyloidosis is a rare, systemic, and progressive disease where abnormal antibody proteins accumulate and damage organs, particularly the heart and kidneys.
The primary endpoint of the CARES studies was a hierarchical combination of time to all-cause mortality and frequency of cardiovascular hospitalizations. While anselamimab did not achieve statistical significance for this primary endpoint across the overall patient population, AstraZeneca stated that a clinically meaningful improvement was observed in a prespecified patient subgroup.
Akero Therapeutics Inc. (NASDAQ:AKRO) engages in the development of treatments for patients with serious metabolic diseases in the US.
2. Globus Medical Inc. (NYSE:GMED)
Market Capitalization as of July 22: $7.22 billion
Number of Hedge Fund Holders: 45
Globus Medical Inc. (NYSE:GMED) is one of the best mid cap pharma stocks to buy. On July 15, Globus Medical announced the introduction of DuraPro with Navigation. The next-gen oscillating system is designed to enhance procedural workflows through its safety features and efficiency, and is the latest addition to the company’s Power Portfolio.
DuraPro features cutting-edge oscillating technology that helps prevent soft tissue wrapping while maintaining a natural sensation similar to conventional spinning drills.
This system provides surgeons with instruments for efficient and accurate bone removal, while simultaneously utilizing its oscillating nature to safeguard delicate tissue.
Globus Medical Inc. (NYSE:GMED) is a medical device company that develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the US and internationally.
1. Revolution Medicines Inc. (NASDAQ:RVMD)
Market Capitalization as of July 22: $7.13 billion
Number of Hedge Fund Holders: 61
Revolution Medicines Inc. (NASDAQ:RVMD) is one of the best mid cap pharma stocks to buy. On July 9, Revolution Medicines Iambic Therapeutics, which is a clinical-stage life science and technology company, announced a multi-year technology and research collaboration. The partnership aims to discover novel drug candidates for RAS-addicted cancers by using Iambic’s leading AI models.
Under the agreement, Iambic will use structures and molecular libraries provided by Revolution Medicines to train customized versions of NeuralPLexer, which is Iambic’s protein-ligand structure prediction model. Revolution Medicines will also gain access to Iambic’s PropANE model, which is a pre-trained graph neural network used for lead selection and optimization across numerous drug properties.
Iambic will develop custom versions of NeuralPLexer and other technologies, trained on Revolution Medicines’ proprietary data, to inform drug discovery against novel targets. Both companies will have access to these improved models. Each company will also retain rights to a limited number of exclusive targets and the ability to designate additional exclusive targets for independent pursuit.
Revolution Medicines Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies for RAS-addicted cancers.
While we acknowledge the potential of RVMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RVMD and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
