In this article, we will be taking a look at the 10 Best Pharma Stocks to Buy According to Billionaires.
Recently, President Trump wrote letters to 17 major pharmaceutical firms outlining the actions they should take to bring the prices of prescription pharmaceuticals in the United States down to “most favored nation” (MFN) levels by September 29.
President Trump’s demand for “binding commitments” to lower drug prices sent pharmaceutical companies “scrambling to respond,” according to a CNBC report on August 1. The report also stated that if the companies “refuse to step up,” the government would not stop using all of its “arsenal to protect American families from continued abusive drug pricing practices.” However, the administration did not specify what these actions may include.
Amgen, AbbVie, AstraZeneca, Eli Lilly, Boehringer Ingelheim, Bristol-Myers Squibb, EMD Serono, Roche’s subsidiary Genentech, GSK, Merck, Pfizer, Gilead, Johnson & Johnson, Novo Nordisk, Novartis, Sanofi, and Regeneron were among the 17 large pharmaceutical companies that got letters.
Additionally, the pharmaceutical corporations were instructed to sell the drugs directly to American consumers, doing away with pharmacy benefit managers (PBMs), who act as middlemen.
Commenting on the situation, analysts led by Seiji Wakao told clients in a note:
“While the government’s latest announcement may appear harsh, we think it is likely that the matter is being discussed to some extent between the companies and the government, and we believe no changes that would have a significant negative impact on pharmaceutical companies will occur in the short term.”
In a separate note, JPMorgan analysts said that while the new directive was sent as a clear warning, pharmaceutical companies might have some time to react because of ongoing negotiations with the US government.
Our Methodology
For our methodology, we started by filtering pharmaceutical stocks using the iShares U.S. Pharmaceuticals ETF as our universe. From this list, we selected the top 10 stocks with the largest ETF weightings. These stocks were then ranked in ascending order based on the total number of billionaire shareholders, as per Insider Monkey’s database of Q2 2025. In cases where two stocks had the same number of billionaire holdings, we used the dollar value of billionaire holdings as a tiebreaker to determine the ranking.
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).
Here is our list of the 10 best pharma stocks to buy according to billionaires.
10. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Billionaire Holdings: 10
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) continues to advance its mission to transform patient lives through innovative therapies for conditions with limited treatment options. The company’s marketed products lead in sleep medicine (Xywav, Xyrem), epilepsy (Epidiolex), and oncology (Zepzelca), while strategic acquisitions, including GW Pharmaceuticals and Chimerix, have strengthened its pipeline with promising investigational drugs. The stock stands tenth on our list among the best pharmaceutical stocks.
On August 6, 2025, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) received FDA accelerated approval for Modeyso (dordaviprone), a DRD2 antagonist for patients with relapsed H3 K27M-mutated diffuse midline glioma. Modeyso is the first approved therapy for this ultra-rare CNS cancer, demonstrating a 22% overall response rate in a pooled analysis of 50 patients across five trials. While the label carries warnings for hypersensitivity and QTc prolongation, these risks are considered acceptable given the aggressive nature of the disease. Continued approval will depend on results from the confirmatory Phase III Action trial, with interim data expected by year-end 2025.
The approval underscores JAZZ’s growing focus on rare oncology indications. The business is also advancing Zepzelca for small-cell lung cancer, planning a supplemental New Drug Application for frontline use based on positive Phase III results, and zanidatamab, a HER2-targeted bispecific antibody in pivotal trials for gastroesophageal adenocarcinoma, with results expected in Q2 2025.
Looking ahead, Jazz Pharmaceuticals plc (NASDAQ:JAZZ)is poised for near-term growth with the commercial launch of Modeyso, ongoing pivotal trial readouts, and regulatory submissions for expanded indications.
9. Elanco Animal Health Incorporated (NYSE:ELAN)
Number of Billionaire Holdings: 10
Elanco Animal Health Incorporated (NYSE:ELAN), a global leader in veterinary pharmaceuticals and biologics, continues to advance its mission of improving animal health and food safety through innovation and sustainability. Serving veterinarians, farmers, and pet owners worldwide, the company leverages nearly 70 years of expertise to deliver solutions for companion animals and livestock.
In September 2025, Elanco Animal Health Incorporated (NYSE:ELAN) joined the S&P MidCap 400 Index, reflecting rising investor confidence and market profile. The company exceeded expectations in Q2 2025, reporting double-digit organic growth, a successful ramp-up of new products, and upwardly revised full-year guidance. Aggressive deleveraging of the balance sheet has enhanced financial flexibility for upcoming product launches and strategic investments.
Recent regulatory approvals have expanded the corporation’s product portfolio. Zenrelia™ (ilunocitinib), a once-daily oral JAK inhibitor for canine dermatology, treats pruritus and atopic dermatitis, showing superior safety and efficacy in early EU studies and making it the company’s fastest-growing brand. The USDA-approved TruCan™ Ultra CIV H3N2/H3N8 vaccine provides broad respiratory protection for dogs, while expanded access to the Canine Parvovirus Monoclonal Antibody (CPMA), including a $3M donation to clinics and shelters, underscores the firm’s commitment to public health.
Elanco Animal Health Incorporated (NYSE:ELAN)’s innovation pipeline positions the company for continued growth, with six potential blockbuster products expected in the US by year-end, spanning monoclonal antibodies, advanced vaccines, and oral therapies.
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