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.
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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.
8. Royalty Pharma plc (NASDAQ:RPRX)
Number of Billionaire Holdings: 11
Royalty Pharma plc (NASDAQ:RPRX), a leader in biopharma royalties, made major strategic moves in September 2025. The company completed a $2 billion senior notes offering maturing in 2031, 2035, and 2055, enhancing its ability to acquire long-duration royalty assets, fund deals, and strengthen its capital structure.
The firm continues to benefit from growing adoption of royalties, with 87% of biopharma executives considering them for capital needs. Since its 2020 IPO, the corporation has tripled headcount, invested in data analytics, and streamlined operations through manager internalization. Q2 2025 portfolio receipts rose 20% year-over-year, and the company targets $4.7 billion in receipts by 2030, with mid-teens shareholder returns and dividend growth. These trends position Royalty Pharma plc (NASDAQ:RPRX) among the best pharmaceutical stocks for long-term growth.
Innovation drives its growth, particularly in oncology. Royalty Pharma plc (NASDAQ:RPRX) announced a $2 billion funding deal with Revolution Medicines, including up to $1.25 billion in synthetic royalties on daraxonrasib, a late-stage compound targeting RAS-addicted cancers.
Royalty Pharma plc (NASDAQ:RPRX) will present at Bernstein’s 2nd Annual Healthcare Forum on September 23, 2025. Analysts remain bullish, with TD Cowen reaffirming a buy rating and a $42 price target, reflecting strong performance and promising future growth.
7. Viatris Inc. (NASDAQ:VTRS)
Number of Billionaire Holdings: 11
Viatris Inc. (NASDAQ:VTRS), formed from the 2020 merger of Mylan and Pfizer’s Upjohn division, delivers essential generic and specialty medicines to patients in over 165 countries. The company maintains a broad portfolio across multiple therapeutic areas, focusing on sustainable growth, operational discipline, and shareholder returns.
In September 2025, the corporation achieved a key milestone with FDA approval for its first generic Iron Sucrose Injection, USP, a complex generic version of Venofer. The injection, intended for iron deficiency anemia in chronic kidney disease patients, is available in three strengths (50 mg/2.5 mL, 100 mg/5 mL, 200 mg/10 mL), with two strengths awarded Competitive Generic Therapy (CGT) designation, granting 180 days of market exclusivity. With Venofer generating $515 million in annual U.S. sales, this approval significantly strengthens the business’ injectable portfolio and reinforces its expertise in complex generics.
Viatris Inc. (NASDAQ:VTRS) also posted strong Q2 2025 results, reporting revenues of $3.58 billion and adjusted EPS of $0.62, exceeding expectations while maintaining top-half guidance for the year. The firm returned over $630 million to shareholders year-to-date, including $350 million in share buybacks. Pipeline progress continues with positive outcomes from five Phase 3 studies, notably ophthalmic solutions for night vision impairment and presbyopia, supporting upcoming FDA submissions.
Leadership and organizational enhancements complement these developments. Andrew Enrietti was appointed Chief Administrative and Transformation Officer, and David Simmons joined the board to strengthen strategic oversight. Presentations at PAINWeek 2025 further highlighted Viatris Inc. (NASDAQ:VTRS)’ R&D capabilities and commitment to clinical innovation in pain management.
6. Pfizer Inc. (NYSE:PFE)
Number of Billionaire Holdings: 14
Pfizer Inc. (NYSE:PFE), a global biopharmaceutical leader, continues to make strides in vaccines and oncology, reinforcing its position in the pharma sector.
In September 2025, PFE and BioNTech reported positive Phase 3 data for the LP.8.1-adapted COMIRNATY 2025-2026 COVID-19 vaccine. The updated formulation produced at least a four-fold increase in neutralizing antibodies among adults 65+ and high-risk adults 18–64, while maintaining a strong safety profile. The vaccine demonstrated robust protection against emerging SARS-CoV-2 sublineages and has been submitted to the FDA to support ongoing authorization for vulnerable populations during upcoming flu seasons. These advancements contribute to Pfizer’s standing among the best pharmaceutical stocks for both vaccines and broader healthcare solutions.
Beyond infectious disease, Pfizer Inc. (NYSE:PFE) is advancing its oncology pipeline, with notable successes in combination therapies. The PADCEV plus KEYTRUDA regimen improved survival in bladder cancer patients, while XTANDI with leuprolide significantly benefited high-risk metastatic prostate cancer patients. These developments highlight the corporation’s focus on expanding critical cancer treatments alongside its vaccine portfolio.
Strategically, Pfizer Inc. (NYSE:PFE) aims to achieve $4.5 billion in cost reductions by year-end 2025, reinvesting savings into R&D for innovative therapies as some key patents approach expiration. Licensing agreements, such as the recent deal with China’s 3SBio, expand access to experimental oncology therapies targeting multiple tumor types. Financial performance remains strong, supported by sales of its COVID-19 vaccine, Paxlovid, and growth in oncology and hematology segments.
5. Zoetis Inc. (NYSE:ZTS)
Number of Billionaire Holdings: 15
Zoetis Inc. (NYSE:ZTS) continues to strengthen its position as a global leader in animal health, with steady growth and expanding innovation. The company develops medicines, vaccines, and diagnostics for both livestock and companion animals, and its diverse product portfolio has driven consistent revenue gains of about 4.2% year over year. The corporation’s financial resilience is underscored by a strong return on equity above 55%, free cash flow exceeding $2.2 billion, and a dividend yield of roughly 1.3%, supported by a conservative payout ratio.
A key development for Zoetis Inc. (NYSE:ZTS) is its collaboration with Blacksmith Medicines to advance new antibiotics aimed at combating antimicrobial resistance in veterinary care, positioning the company at the forefront of a growing global challenge. At the same time, Zoetis is expanding in the companion animal market with innovative treatments. In September 2025, its arthritis therapy for cats, Portela (relfovetmab), received a positive opinion from the European Medicines Agency, reflecting the business’s commitment to addressing unmet needs in pet health.
Financially, Zoetis Inc. (NYSE:ZTS) has outperformed expectations, posting quarterly earnings per share of $1.76, above the $1.62 estimate, and setting full-year guidance at $6.30–$6.40.
4. Merck & Co., Inc. (NYSE:MRK)
Number of Billionaire Holdings: 16
Merck & Co., Inc. (NYSE:MRK), a global biopharmaceutical company founded in 1891 and headquartered in Rahway, New Jersey, continues to strengthen its leadership in oncology and vaccines.
This month, the FDA approved Keytruda Qlex, a subcutaneous version of the drug that can be administered in just one to two minutes, compared to the 30-minute intravenous infusion. The injectable is expected to launch in the U.S. by late September 2025, improving convenience for patients and providers while reinforcing Keytruda’s competitive edge against future biosimilars, further solidifying Merck among the best pharmaceutical stocks.
In Europe, the EMA’s Committee for Medicinal Products for Human Use (CHMP) issued two positive opinions for Keytruda: one supporting approval of the subcutaneous injection for the EU market, and another recommending its use in earlier-stage locally advanced head and neck cancer. A final EU decision is expected later this year, potentially expanding Keytruda’s reach across cancer care.
Beyond oncology, Merck & Co., Inc. (NYSE:MRK) is advancing its vaccine portfolio. The CHMP recently issued a positive opinion for ENFLONSIA (clesrovimab), designed to prevent respiratory syncytial virus (RSV) in infants. If approved, it would become the first uniform-dose preventive option for RSV in Europe. MRK is also progressing with new pneumococcal vaccines, showing promising trial results.
3. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Billionaire Holdings: 17
Bristol-Myers Squibb Company (NYSE:BMY), a global biopharmaceutical leader in oncology, immunology, cardiovascular disease, and fibrosis, is undergoing major strategic changes as it adapts to shifting market conditions.
On September 17, 2025, the company announced plans to divest its 60% stake in a pharmaceutical joint venture in China. The move reflects a broader realignment as BMY joins other drugmakers in reducing exposure to China amid economic headwinds and supply chain challenges.
The divestiture comes alongside a $2.5 billion restructuring plan launched in 2023 aimed at cutting costs and driving efficiency. The program, expected to yield $2 billion in annual savings by 2027, involves reshaping R&D, commercial, and manufacturing operations. Workforce reductions are a key component, with 282 layoffs in New Jersey scheduled between December 2025 and March 2026. In total, the firm expects to save about $3.5 billion through multiple rounds of staff reductions and operational improvements.
Financially, Bristol-Myers Squibb Company (NYSE:BMY) will report Q3 2025 results on October 30, with analysts projecting earnings of $1.65 per share. BMY also reaffirmed shareholder returns, declaring a quarterly dividend of $0.62 per share on September 17.
2. Johnson & Johnson (NYSE:JNJ)
Number of Billionaire Holdings: 18
Johnson & Johnson (NYSE:JNJ), a global healthcare leader, continues to strengthen its pharmaceuticals and immunology portfolio while delivering strong stock performance in 2025.
This month, the company received FDA approval for a subcutaneous induction regimen of Tremfya (guselkumab) to treat adults with ulcerative colitis. As the first and only IL-23 inhibitor with a fully subcutaneous regimen, Tremfya achieved significant clinical remission and endoscopic improvement in Phase 3 trials. JNJ is also launching a head-to-head trial comparing Tremfya to AbbVie’s Skyrizi in Crohn’s disease, underscoring its commitment to expanding in immunology.
In Europe, Johnson & Johnson (NYSE:JNJ) reported progress for nipocalimab, an investigational FcRn blocker for antibody-positive generalized myasthenia gravis in both adults and adolescents. Pending European Commission approval, it could become the first treatment of its kind, supported by compelling late-stage trial data.
The business also expanded its oncology portfolio with FDA approval of a new drug delivery system for bladder cancer, offering patients a potential alternative to surgery and reinforcing its position in cancer innovation.
On the financial front, Johnson & Johnson (NYSE:JNJ)’s shares are up 20% year-to-date, boosted by pharmaceutical growth and easing legal risks compared to previous years. Still, the company continues to navigate ongoing talc-related litigation, with settlements and court proceedings drawing attention.
1. Eli Lilly and Company (NYSE:LLY)
Number of Billionaire Holdings: 23
Eli Lilly and Company (NYSE:LLY) tops our list for being one of the best pharmaceutical stocks. It is the Indianapolis-based pharmaceutical giant and is accelerating its dominance in obesity treatments while expanding its global footprint and manufacturing capacity.
The company’s obesity drug franchise, led by Mounjaro (tirzepatide), has scaled rapidly beyond the U.S. to Europe, Asia, the Middle East, and most recently Mexico, Brazil, India, and China. By leveraging partnerships with digital health and e-commerce platforms like Alibaba and JD.com, LLY has strengthened supply reliability and patient access, distinguishing itself from rival Novo Nordisk’s rollout hurdles.
This month, new clinical trial data boosted Eli Lilly and Company (NYSE:LLY)’s pipeline prospects. Orforglipron, its oral GLP-1 agonist, outperformed Novo Nordisk’s Rybelsus in blood sugar control and weight loss for type 2 diabetes patients.
Alongside drug innovation, the corporation is investing heavily in manufacturing capacity. The business announced a $5 billion facility near Richmond, Virginia, focused on bioconjugates and monoclonal antibodies, with significant economic impact expected. This is part of a broader $27 billion plan for four U.S. plants, reinforcing its push into next-generation oncology and autoimmune therapies.
The pipeline continues to advance across other areas as well. Alzheimer’s drug donanemab (Kisunla) recently received an FDA-approved dosing schedule and a positive nod from European regulators, while acquisitions like the $1.3 billion Verve Therapeutics deal strengthen the firm’s innovation engine.
On pricing, Eli Lilly and Company (NYSE:LLY) introduced a flat-rate $499 monthly model for Zepbound, improving affordability. U.S. policy shifts could further boost demand, with Medicaid coverage for GLP-1 weight-loss drugs set for 2026 and Medicare in 2027.
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