Health and Human Services Secretary Robert F. Kennedy Jr. announced on Monday plans to “retire” all 17 members of the Advisory Committee on Immunization Practices (ACIP), a key government panel of vaccine advisors that advises the Centers for Disease Control and Prevention, stating that:
“A clean sweep is needed to re-establish public confidence in vaccine science.”
On June 10, NBC News medical analyst Dr. Vin Gupta appeared on CNBC’s ‘Money Movers’ to talk about RFK Jr. ousting CDC vaccine advisers, stating that it is likely to be significant for patients. He reasoned that there are several open questions regarding the decision, since historically, in the United States, the advisory committee has been looked to for guidance on immunization practices to establish what insurance companies, particularly commercial payers, will cover. This includes, in particular, vaccine regimens, new shots, and other similar treatments.
He thus stated that in such circumstances, the question arises as to who will replace the 17 experts in various healthcare domains, and if there is going to be a shift in guidance, what would that mean in terms of access to certain vaccines? Dr. Gupta expressed worry over such a shift materializing, as people would potentially see a change in what insurance will and will not cover.
With these trends in view, let’s look at the best drug stocks to buy according to hedge funds.
A closeup of a doctor’s hands preparing a dosage of a cardiovascular medicine.
Our Methodology
We used the Finviz stock screener to compile a list of the top 11 drug stocks most popular among elite hedge funds. The hedge fund data was sourced from Insider Monkey’s database, which tracks the moves of over 1000 elite money managers. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q1 2025.
Note: All data was sourced on June 12.
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).
11 Best Drug Stocks to Buy According to Hedge Funds
11. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 27
Sanofi (NASDAQ:SNY) is one of the 11 Best Drug Stocks to Buy According to Hedge Funds. Berenberg Bank analyst Luisa Hector maintained a Buy rating on Sanofi (NASDAQ:SNY) on June 12, setting a price target of €118.00.
The rating followed the company’s presentation at the Goldman Sachs 46th Annual Global Healthcare Conference on June 10, highlighting various growth drivers within Specialty Care that bring an optimistic light to its operations.
Brian Foard, Head of Specialty Care at Sanofi (NASDAQ:SNY), stated that the product dupilumab is expected to undergo double-digit CAGR growth between 2023 and 2030, delivering an estimated EUR 22 billion by the end of the forecast period.
He said that Sanofi’s (NASDAQ:SNY) recently launched assets, such as ALTUVIIIO and Qfitlia, further add to this positive outlook. This also includes SARCLISA, the first FDA-approved treatment for adults with newly diagnosed multiple myeloma, which is continuing to expand its indications from both oncology and multiple myeloma perspectives.
The company thus presented a growth story at the conference, including in neurology, where it anticipates a reentry into the MS space through the upcoming launch of tolebrutinib.
Sanofi (NASDAQ:SNY) ranks 11th on our list of the best drug stocks to buy according to hedge funds. It researches, produces, and distributes pharmaceutical products. The company’s operations are divided into the Pharmaceuticals, Consumer Healthcare, and Vaccines segments.
10. Novartis AG (NYSE:NVS)
Number of Hedge Fund Holders: 33
Novartis AG (NYSE:NVS) is one of the 11 Best Drug Stocks to Buy According to Hedge Funds. On June 12, Berenberg Bank analyst Luisa Hector maintained a Hold rating on Novartis AG (NYSE:NVS) and set a price target of CHF89.00.
The same day, the company reported statistically significant improvements in the Phase IIIB APPULSE-PNH study. The study demonstrated clinically meaningful improvements in hemoglobin (Hb) levels of 2.01 g/dL on average in adult patients with paroxysmal nocturnal hemoglobinuria (PNH) who switched to Fabhalta.
None of the patients treated with Fabhalta required transfusions, experienced major adverse vascular events during the treatment period, or experienced breakthrough hemolysis (BTH).
Novartis AG (NYSE:NVS) develops, manufactures, and markets healthcare products. The company operates through the Innovative Medicines, Sandoz, and Corporate segments. It is the tenth-best drug stock to invest in now and is headquartered in Basel, Switzerland.
