In this article, we will be taking a look at the 10 High Growth Pharma Stocks That Are Profitable in 2025.
Emily Field, the head of Barclays’ European pharmaceutical research, spoke on CNBC on July 14 about which pharmaceutical companies will be most affected by 30% US tariffs on EU imports. Field believes that because of their complex and secret supply lines, it is difficult to pinpoint the businesses that are most affected. “There haven’t been any country-specific requests for carve-outs,” Field said in reference to the European pharmaceutical companies urging the US administration for similar carve-outs, particularly in light of President Trump’s proposal to impose tariffs of up to 200% on pharmaceutical imports. She did note, though, that a number of European businesses have announced significant plans to invest in US manufacturing.
She added that the administration is working with these companies on the nation’s preferred drug price policy. According to Field, these initiatives are related and seek a mutually advantageous agreement between the government and the sector, which may include a mix of medication pricing regulations and tariffs. She said that the pharmaceutical industry is not subject to the present country-specific tariffs, which she said could be one of the reasons why the European healthcare index was doing better that day than the overall European index.
She clarified that the Commerce Department is conducting a Section 232 inquiry and that the findings, which will establish sector-specific tariffs, should be available by the end of the month. Before the President announced a possible 200% tariff, most people had 25% expectations. Nonetheless, the industry has always argued that tariffs would harm patients by possibly causing drug shortages.
With this in mind, let’s take a look at the high growth pharma stocks that are profitable in 2025.
Our Methodology
We filtered stocks using a screener, applying criteria of five-year revenue growth exceeding 25% and trailing twelve-month (TTM) net income above $500 million. From the resulting list, we selected the stocks with the highest number of hedge fund holders as of Q2 2025, as tracked by the Insider Monkey database, and ranked them in ascending order.
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 high growth pharma stocks that are profitable in 2025.
10. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 55
Biogen Inc. (NASDAQ:BIIB), founded in 1978 and headquartered in Cambridge, Massachusetts, continues to strengthen its leadership in neurological disorders, with a particular focus on Alzheimer’s disease. It stands tenth on our list among the high growth stocks. In April 2025, the European Commission approved lecanemab (Leqembi), developed with Eisai, marking Austria and Germany as its first EU markets. The therapy is now approved in 48 countries, with a U.S. FDA decision on a subcutaneous autoinjector formulation expected by August 31, 2025. Large Phase 3 trials, including AHEAD 3-45 for individuals at risk and Tau NexGen for inherited Alzheimer’s, highlight the company’s push into preclinical and familial forms of the disease.
To support this growing pipeline, Biogen Inc. (NASDAQ:BIIB) is investing $2 billion to expand its Research Triangle Park (RTP) operations in North Carolina. The new facility, set to be operational by late 2025, will feature advanced automation, expanded antisense oligonucleotide capabilities, and multi-platform fill-finish operations. With more than $10 billion invested in RTP since 1995, the business has cemented itself as a cornerstone of the state’s biopharma industry while ensuring a resilient supply for future launches.
Beyond Alzheimer’s, Biogen Inc. (NASDAQ:BIIB) is advancing therapies across multiple high-need areas. Zorevunersen, an antisense drug for Dravet syndrome, is expected to deliver pivotal Phase 3 results by 2027. Salanersen, a potential breakthrough for spinal muscular atrophy, is moving toward Phase 3 trials following positive early data. Felzartamab, an anti-CD38 therapy, is in late-stage studies for rare kidney diseases, while dapirolizumab pegol has shown encouraging results in lupus by improving fatigue and disease activity.
9. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 62
Amgen Inc. (NASDAQ:AMGN), the California-based biotech giant, continues to strengthen its leadership in cardiovascular, oncology, respiratory, and rare diseases while expanding into new therapeutic frontiers.
In Q2 2025, the company posted a 9% year-over-year revenue increase, fueled by double-digit growth across 15 core products. Investment in R&D climbed 18%, with the company prioritizing high-impact areas like obesity, cardiovascular disease, and oncology. A $900 million manufacturing expansion in Ohio will support future supply and create hundreds of new jobs, underscoring the business’s commitment to scaling its pipeline.
The spotlight remains on MariTide, Amgen Inc. (NASDAQ:AMGN)’s experimental obesity drug designed to target both GLP-1 and GIP receptors for potentially superior weight-loss outcomes. Key Phase 2 trial results are expected in late 2025, including studies in both obesity and type 2 diabetes. Early data suggests patients could achieve weight loss of up to 20%, positioning MariTide as a potential disruptor in a market projected to exceed $150 billion globally.
Regulatory and clinical momentum also continues across Amgen Inc. (NASDAQ:AMGN)’s portfolio. In August 2025, Repatha gained expanded FDA approval for adults at elevated risk of major cardiovascular events, while Tezspire posted 46% sales growth year-over-year as adoption in severe asthma accelerates. Meanwhile, biosimilars revenue jumped 40%, strengthening margins and expanding access to affordable therapies.
8. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 67
Bristol-Myers Squibb Company (NYSE:BMY), a global biopharma leader, is making bold moves to strengthen its immunology presence through strategic partnerships and a growing pipeline. In July 2025, the company announced a joint venture with Bain Capital to launch an independent immunology-focused firm, backed by $300 million in financing. The new company will advance five assets, including a late-stage lupus therapy and a mid-stage psoriasis treatment, both showing encouraging results.
Under the agreement, Bristol-Myers Squibb Company (NYSE:BMY) will retain a 20% equity stake and receive milestone payments and royalties tied to future success. The move allows the corporation to leverage external expertise and capital while freeing internal resources to pursue next-generation drug development. Industry veterans will lead the new spinout, ensuring strong scientific and operational direction, positioning the company among high growth stocks in the biopharma sector.
This expansion complements Bristol-Myers Squibb Company (NYSE:BMY)’s broader mission of advancing therapies across oncology, cardiology, fibrosis, and immunology. With more than 48 compounds in active development across 40+ disease areas, the company is investing heavily in cutting-edge research platforms, including protein degradation and antibody-drug conjugates.
7. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 71
Gilead Sciences, Inc. (NASDAQ:GILD) is making headlines with a breakthrough in HIV prevention following the FDA approval of Yeztugo, the world’s first twice-yearly preventive treatment. This milestone not only strengthens Gilead’s leadership in antiviral innovation but also signals a transformative step in global health and market growth.
Headquartered in Foster City, California, Gilead Sciences, Inc. (NASDAQ:GILD) operates in more than 35 countries with a diverse portfolio spanning HIV, viral hepatitis, cancer, and COVID-19. The corporation’s core advantage lies in its rapid drug development and robust pipeline, particularly in antiviral and oncology therapeutics.
The launch of Yeztugo has already demonstrated strong uptake, with the business aiming to secure 75% insurer coverage within six months and expand access within a year. Its HIV portfolio, including the blockbuster therapy Biktarvy, also continues to perform well, showing a 7% year-over-year sales increase driven by market demand and clinical efficacy.
Momentum is building globally, with the European Medicines Agency recently recommending approval for lenacapavir, Gilead Sciences, Inc. (NASDAQ:GILD)’s twice-yearly HIV prevention drug, which could soon achieve market exclusivity in Europe. Broader access through WHO-backed initiatives may also extend availability to lower-income regions, reinforcing the firm’s global health impact.
6. Zoetis Inc. (NYSE:ZTS)
Number of Hedge Fund Holders: 75
Zoetis Inc. (NYSE:ZTS), a New Jersey–based global leader in animal health, continues to strengthen its position in the industry with medicines and vaccines for both companion animals and livestock. The company is particularly recognized for its innovations in parasiticides, dermatology, and vaccines that enhance animal well-being.
In its second-quarter 2025 earnings report, Zoetis Inc. (NYSE:ZTS) delivered stronger-than-expected results, posting $2.5 billion in revenue, an 8% increase driven by both volume and price growth. Building on this momentum, the company raised its full-year revenue outlook to between $9.45 billion and $9.60 billion, underscoring confidence in sustained demand across key markets and reinforcing its standing among high growth stocks in the animal health sector.
Growth was fueled largely by the continued success of Simparica Trio, a leading flea, tick, and heartworm treatment for pets, as well as strong performance in dermatology products, including Apoquel, Solens, and Cytopoint. The livestock segment also showed signs of recovery, though it faced competitive pressures and supply challenges.
CEO Kristin Peck emphasized Zoetis Inc. (NYSE:ZTS)’ resilience amid macroeconomic headwinds, crediting disciplined execution and a sharp focus on innovation. She also highlighted the corporation’s opportunities for expansion, citing recent product approvals and label extensions across global markets such as Japan, Australia, Brazil, and the EU.
5. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE), a global pharmaceutical leader, continues to drive growth through innovation, commercial execution, and operational efficiency. The company’s portfolio spans vaccines and treatments for a range of diseases, including its high-profile COVID-19 vaccine, Comirnaty.
A major recent development is the FDA approval of Pfizer Inc. (NYSE:PFE) and BioNTech’s updated COVID-19 vaccine, COMIRNATY LP.8.1. Targeting the SARS-CoV-2 sublineage LP.8.1, the vaccine is authorized for adults 65 and older, as well as high-risk individuals aged 5–64. Shipping began immediately to ensure broad access for the upcoming respiratory season, reflecting Pfizer’s commitment to timely public health responses.
Financially, Pfizer Inc. (NYSE:PFE) reported strong second-quarter 2025 results with $14.7 billion in revenue, up 10% year-over-year, driven by key products including Vyndaqel and COVID-19 therapies. The business raised its full-year adjusted earnings outlook to $2.90–$3.10 per share, supported by cost-cutting initiatives expected to save $7.2 billion by 2027, with $4.5 billion anticipated by year-end 2025 through efficiencies in research and manufacturing operations.
4. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 89
AbbVie Inc. (NYSE:ABBV), a global biopharmaceutical leader, continues to expand its presence in immunology, oncology, and neuroscience. The company has successfully transitioned from legacy drugs like Humira to newer blockbusters, including Skyrizi and Rinvoq, which treat inflammatory and autoimmune conditions and have shown strong sales growth of 71% and 57% year-over-year in 2025.
A major recent development is AbbVie Inc. (NYSE:ABBV)’s $1.2 billion acquisition of Gilgamesh Pharmaceuticals’ mid-stage psychedelic drug candidate, bretisilocin, targeting major depressive disorder. This move marks the business’s strategic entry into neuroscience and psychiatry, diversifying its pipeline beyond immunology and oncology, positioning it among high growth stocks. In parallel, the firm is investing $195 million to expand API manufacturing at its North Chicago facility, part of a broader $10 billion U.S. investment plan over the next decade. The expansion, expected to begin operations in 2027, aims to strengthen domestic production capacity for next-generation therapies.
On the clinical front, AbbVie Inc. (NYSE:ABBV) reported positive topline results from a second Phase 3 trial evaluating Upadacitinib (Rinvoq) for alopecia areata, signaling potential growth in dermatological autoimmune indications. Combined with robust immunology sales and strategic investments, these developments highlight the company’s focus on innovation, pipeline diversification, and manufacturing resilience.
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK), a global leader in pharmaceuticals, vaccines, and animal health, continues to focus on innovation across oncology, cardiovascular, infectious diseases, and immunology. In 2025, the company is strategically preparing for the anticipated U.S. patent expiration of its blockbuster cancer therapy, Keytruda, in 2028. To address this, MRK announced a $3 billion cost-cutting and reinvestment plan aimed at funneling resources into high-priority growth areas such as oncology and cardiometabolic diseases by 2027.
Clinical advancements remain central to Merck & Co., Inc. (NYSE:MRK)’s strategy. At the European Society of Cardiology Congress 2025, the firm presented new data on cardiovascular conditions, including atherosclerotic cardiovascular disease, pulmonary hypertension, and heart failure with reduced ejection fraction. Notably, pooled analyses of Phase 3 VICTOR and VICTORIA trials for VERQUVO (vericiguat) demonstrated reductions in cardiovascular death and heart failure hospitalizations. Additionally, MRK reported positive topline results from Phase 3 CORALreef trials of Enlicitide Decanoate for hyperlipidemia and secured FDA approval for ENFLONSIA, a preventive RSV therapy for infants, supported by CDC guidance.
Merck & Co., Inc. (NYSE:MRK) is also pursuing strategic growth through acquisitions, exemplified by its planned $10 billion purchase of Verona Pharma to expand its lung disease portfolio. While challenges persist with slowed HPV vaccine Gardasil uptake in markets like China and Japan, the business continues to optimize global operations and focus on innovative product launches.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 95
Johnson & Johnson (NYSE:JNJ), a global leader in pharmaceuticals, medical devices, and consumer health, continues to drive growth in 2025 through strategic investments in innovation and domestic manufacturing. The company is focused on expanding U.S. production capabilities to strengthen supply resilience, highlighted by a $2 billion investment in a state-of-the-art North Carolina facility. This expansion, part of a broader $55 billion U.S. manufacturing initiative over the next four years, includes a decade-long partnership with Fujifilm Diosynth and plans for additional sites nationwide.
On the pharmaceutical front, Johnson & Johnson (NYSE:JNJ)’s Innovative Medicine segment is performing strongly, with notable growth in key therapies such as Darzalex, Carvykti, and Tecvayli. Carvykti, a next-generation cell therapy for multiple myeloma, recorded over 100% sales growth in Q2 2025, helping offset the impact of the loss of exclusivity for Stelara. The business’s robust pipeline and operational success underscore its continued leadership in specialty medicines.
In medical devices, Johnson & Johnson (NYSE:JNJ) is advancing innovation with the launch of the VIRTUGUIDE™ AI-powered system, designed to improve efficiency and precision in orthopedic surgeries. This move highlights the firm’s commitment to integrating advanced technology into surgical care, benefiting both surgeons and patients.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) tops our list for being one of the high growth stocks. It is a global pharmaceutical leader and continues to drive growth in 2025 through innovative treatments in diabetes, obesity, cancer, and other chronic conditions. The company has seen strong momentum with its GLP-1-based therapies, particularly Mounjaro for diabetes and Zepbound for obesity, which are shaping its leadership in the metabolic treatment market.
In Q2 2025, Eli Lilly and Company (NYSE:LLY) reported robust sales of $15.56 billion, a 38% year-over-year increase, fueled by Mounjaro’s $5.2 billion (up 68%) and Zepbound’s $3.38 billion (up 172%). These results surpassed Wall Street expectations and enabled the company to raise its full-year 2025 revenue forecast to $60–$62 billion.
Beyond injectables, LLY is advancing oral obesity treatments. Late-stage trial data for orforglipron, an experimental oral therapy, showed over 12% average weight loss at the highest dosage and improvements in cardiovascular risk factors, supporting potential global regulatory submissions and market expansion.
Eli Lilly and Company (NYSE:LLY) is also managing regulatory and market dynamics, such as temporarily halting Mounjaro shipments in the UK ahead of a planned price increase. This aligns with broader pharmaceutical pricing trends influenced by U.S. policy and international market strategies.
While we acknowledge the potential of LLY 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 LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
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