In this article, we will look at the 10 Most Profitable Biotech Stocks to Invest in Now.
Jared Holz, Mizuho health care equity strategist, appeared on CNBC’s ‘Power Lunch’ on March 5 to talk about investing in biotech and the oversaturation in the sector. His motto for investing in the biotech sector is stock picking, as he stated that “stock picking is the only way to make money in biotech.”
Holz further said that the denominator of biotech stocks in the public markets comes to 700 to 800, depending on the day. A quarter of those have enterprise values in negative territories, which translates to the fact that investors, and even the companies themselves, have in some respects exhausted options.
READ ALSO: 10 Best Strong Buy Healthcare Stocks to Buy Now and 11 Best Shipping and Container Stocks to Invest in Now.
There are thousands of biotech companies all competing against one another for limited market and revenue opportunities. According to Holz, venture funds should stop creating so many new companies that end up superseding each other in a few years.
With these trends in view, let’s look at the most profitable biotech stocks to invest in now.
A wide shot of a biotech lab, with scientists wearing lab coats and conducting research.
Our Methodology
We used Finviz to make a list of profitable biotech stocks (with a TTM net income over $100 million) and selected the top 10 with the highest number of hedge fund holders as of Q1 2025. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on July 23.
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).
10 Most Profitable Biotech Stocks to Invest in Now
10. Genmab A/S (NASDAQ:GMAB)
TTM Net Income: $1.14 billion
Number of Hedge Fund Holders: 20
Genmab A/S (NASDAQ:GMAB) is one of the most profitable biotech stocks to invest in now. In a report released on July 14, Yaron Werber from TD Cowen maintained a Hold rating on Genmab A/S (NASDAQ:GMAB) without a price target.
In other news, Genmab A/S (NASDAQ:GMAB) reported on July 16 that net sales of DARZALEX totaled $3.539 billion in Q2 2025, with net trade sales of $ 2.017 billion in the US and $1.521 billion in the rest of the world.
Genmab A/S (NASDAQ:GMAB) receives royalties on the global net sales of DARZALEX, both the intravenous and SC products, under the exclusive worldwide license to Johnson & Johnson for the manufacturing, development, and commercialization of daratumumab.
Genmab A/S (NASDAQ:GMAB) is an international biotechnology company that develops human antibody therapeutics for the treatment of cancer and other diseases.
Its product pipeline includes DARZALEX to treat certain indications of multiple myeloma, TEPEZZA for the treatment of thyroid eye disease, and Arzerra to treat certain indications of chronic lymphocytic leukemia.
9. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
TTM Net Income: $485.36 million
Number of Hedge Fund Holders: 31
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the most profitable biotech stocks to invest in now. On July 16, Morgan Stanley analyst Sean Laaman maintained a neutral stance on Halozyme Therapeutics, Inc. (NASDAQ:HALO), giving the stock a Hold rating with a $62 price target.
The analyst reasoned that one of the key concerns regarding Halozyme Therapeutics, Inc. (NASDAQ:HALO) is the uncertainty around the CMS draft pricing guidance, as it could potentially affect the pricing negotiations for the company’s combination products.
He stated that this draft guidance may be a matter of concern for Halozyme Therapeutics, Inc.’s (NASDAQ:HALO) long-term revenues, which holds especially true if the products are not exempt from the price negotiations anticipated to take effect in 2028.
Laaman further reasoned that while Halozyme Therapeutics, Inc. (NASDAQ:HALO) raised its financial guidance for 2025 with higher partner orders and royalty revenues, it is still unclear how regulatory updates would affect these estimates.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical technology platform company that develops, manufactures, and commercializes drug-device combination products through advanced auto-injector technology. They offer commercial or functional benefits, including increased patient comfort and adherence, and enhanced tolerability and convenience.