In this article, we will take a look at the 10 Most Profitable Biotech Stocks to Buy Now.
Following a turbulent year for the markets in general and biotech in particular, the industry made a notable recovery, surpassing both the S&P 500 and the broader market index, and ending 2025 with its highest yearly gains since the Covid-19 pandemic. Meanwhile, a combination of increased visibility and solid market performance has led to a more favorable climate.
Speaking to Investing News Network, Eric Shrayer, director of research at Reynders, McVeigh Capital Management, stated that the most notable development for the life science and biotech sectors in 2025 so far has been the $47 billion NIH budget. According to Shrayer, raising funds is often the most difficult barrier for small biotech companies, especially in a low-growth environment characterized by higher interest rates and stricter capital markets.
In another vein, biotech stocks have seen an increase in M&A activity. In March alone, there were ten acquisitions valued at around $31.5 billion. The approaching patent cliff, which some predict could cost the industry $300 billion by 2030, appears to be a major driver of this activity.
Our Methodology
For this list, we used stock screeners to identify profitable biotechnology stocks with the highest TTM net income and net income margins. These stocks are widely held by hedge funds and followed by analysts.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) ranks among the most profitable biotech stocks to buy now. On March 25, BofA Securities raised ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) to Buy from Neutral, retaining a $29 price objective. The firm stated that the nearly 25% drop in the share price recently was due to year-to-date macroeconomic factors rather than fundamentals.
The firm stated that consistent Nuplazid sales in Parkinson’s psychosis give protection against future decline. BofA Securities estimates $888 million in peak sales in 2029, which may be modest, given recent field force investments that could boost growth.
According to BofA Securities, ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) estimates that its pipeline has a $11 billion opportunity, which is currently discounted and may offer upside. The firm added that phase 2 data for remlifanserin in Alzheimer’s psychosis is anticipated in August–October and is partially de-risked based on previous Nuplazid psychosis basket trial results. The firm forecasts $2.1 billion in nominal peak sales for 2038, with a 40% chance of success in Alzheimer’s psychosis.
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company focused on developing and commercializing therapies for central nervous system disorders. It targets unmet medical needs in areas such as Parkinson’s disease, psychosis, schizophrenia, and rare neurological conditions.
9. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Halozyme Therapeutics, Inc. (NASDAQ:HALO) ranks among the most profitable biotech stocks to buy now. On April 13, TD Cowen reaffirmed its Buy rating and $96 price target for Halozyme Therapeutics, Inc. (NASDAQ:HALO). The firm forecasts Halozyme to continue to outperform expectations and enhance guidance due to strong growth catalysts such as Vyvgart Hytrulo, Darzalex Faspro, and Phesgo.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) began to disclose the royalties from these three medications during the past quarter. TD Cowen stated that Vyvgart Hytrulo is a more significant contributor than previously assumed, which reduces the risk of near-term royalty increase, assuming the ongoing success across numerous indications.
Similarly, following a collaboration announcement, Leerink Partners reiterated its Market Perform stock rating and $83 price target for Halozyme Therapeutics, Inc. (NASDAQ:HALO). Halozyme has established an affiliation with Vertex Pharmaceuticals on the Hypercon technology platform.
Compared with Halozyme’s ENHANZE platform, the Hypercon technology enables higher drug concentrations, making at-home treatment possible. In addition to possible future milestone payments and royalties, Vertex will reimburse Halozyme $15 million in advance.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical technology platform company that creates, manufactures, and sells drug-device combination solutions using advanced auto-injector technologies.
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