In this article, we will look at the 10 Best Performing Pharma Stocks in 2025.
On January 8, Michael Yee, global head of biotech research at UBS, appeared on CNBC’s ‘Squawk on the Street’ to discuss his bullish outlook on biopharma stocks in 2026 and the pharma M&A outlook. He stated that M&A activity started off strong in the year, and that pharma stocks are set to take off in 2026.
In addition to the big pharma companies, he believes that biotech, which had a really tough past 3-4 years, is ready to take off as well. These trends are partly due to M&A and the drug-pricing overhang passing. He expects cardiometabolic and obesity drugs, along with cardiovascular and oncology, to be the primary categories of interest for the main players in the domain for acquisitions.
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The trends, therefore, point to a green light for M&A, according to Yee, with the biggest patent cliffs happening in 2028 and 2029. The big pharma companies have the largest balance sheets and patent cliffs they have ever had, which is why he expects the trends to pick up in 2026.
With these optimistic trends in view, let’s look at the 10 best performing pharma stocks in 2025.
Our Methodology
We used Finviz to screen pharma stocks and selected the best performers based on their one year performance. We also included the number of hedge fund holders for each stock as of Q3 2025, and sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of the 1-year performance.
Note: All data was recorded on January 8.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Performing Pharma Stocks in 2025
10. Biogen Inc. (NASDAQ:BIIB)
1-Year Performance: 20.95%
Number of Hedge Fund Holders: 59
Biogen Inc. (NASDAQ:BIIB) is one of the best performing pharma stocks in 2025. Biogen Inc. (NASDAQ:BIIB) received several rating updates on January 8. Truist lifted the price target on the stock to $190 from $142 but maintained a Hold rating, telling investors in a research note that while it updated its model, the fundamental views remain the same as 2025.
The same day, Biogen Inc. (NASDAQ:BIIB) also received rating updates from Goldman Sachs and Mizuho. Goldman Sachs raised the price target on the stock to $225 from $197 while keeping a Buy rating on the shares. It expects momentum to continue in 2026 after strong sector performance in 2025, supported by improving fundamentals, market dynamics, and easing policy risks. These factors, along with their secondary effects such as M&A, persist, according to the firm.
Mizuho, on the other hand, lifted the price target on Biogen Inc. (NASDAQ:BIIB) to $207 from $177 and maintained an Outperformed rating, stating that it updated the company’s model since 2026 is “looking a bit better” for Biogen Inc. (NASDAQ:BIIB).
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases across the globe. Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS). The company has an elaborate marketed product portfolio for MS, including TECFIDERA, VUMERITY, AVONEX, PLEGRIDY, TYSABRI, and FAMPYRA. It also markets SPINRAZA to treat SMA, SKYCLARYS for the treatment of Friedreich’s Ataxia, and other drugs.
9. AbbVie Inc. (NYSE:ABBV)
1-Year Performance: 26.15%
Number of Hedge Fund Holders: 93
AbbVie Inc. (NYSE:ABBV) is one of the best performing pharma stocks in 2025. AbbVie Inc. (NYSE:ABBV) was downgraded to Peer Perform from Outperform on January 8 by Wolfe Research without a price target. The firm stated that the shares already reflect outperformance expectations in Skyrizi and Rinvoq, which is why it is moving to the sidelines waiting for higher visibility on the company’s immunology and inflammation “encore” and competitive dynamics.
In a separate development, Reuters reported on January 7 that AbbVie Inc. (NYSE:ABBV) denied its involvement in talks for the acquisition of Revolution Medicines. The update came after the Wall Street Journal reported that AbbVie Inc. (NYSE:ABBV) was in advanced discussions to buy Revolution Medicines, the cancer-drug developer. AbbVie Inc. (NYSE:ABBV) told Reuters in an emailed statement that it “is not in discussions with Revolution Medicines”.
The same day, UBS assumed coverage of AbbVie Inc. (NYSE:ABBV) with a Neutral rating, lifting the price target on the stock to $240 from $220. It told investors that it believes the company is fairly priced at current levels, and sees a balanced risk/reward for the company’s shares as competition emerges for its blockbuster immunology drugs Skyrizi and Rinvoq in 2026 and 2027.
AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions.
