In this article, we will be taking a look at the 11 Best Performing Biotech Stocks So Far in 2025.
On July 8, Jared Holz of Mizuho spoke on CNBC’s “Closing Bell Overtime” about whether the biotech sector is ready for a breakthrough. According to Jared Holz, the biotech sector has proven especially difficult to predict due in large part to the vast number of publicly traded stocks that, when combined, don’t show a clear, consistent trend with many positive and negative features. He noted that this is the reason it is challenging to call on the entire sector.
Holz observed that the industry was beginning to trade a bit better, reaching higher lows and halting its long-running daily drop. He believes that it is time for a move higher because the market has completely understood and taken into account all of the negative factors, such as competition, pricing pressure, and the volume of assets in the publicly traded arena.
He also confirmed that his forecast of a biotech breakout was influenced by a change in investor sentiment and was founded on his analysis. He claimed that contacts with investors had been considerably more positive in recent months. He attributed this shift to discussions about the “pharma dilemma,” which most likely alludes to the need for pharmaceutical corporations to acquire new assets, improved clinical data, and actual M&A activity. He continued by saying that while he doesn’t believe interest rates have a direct connection to this sector, some individuals do, and they anticipate that rates will decline over time, which heightens the sense of optimism. He also paid attention to the technical indicators, pointing out that the biotech index had stopped declining regardless of whether the market as a whole was gaining or dropping, indicating that the sector was in a stronger position.
Our Methodology
Our methodology began with filtering stocks using Finviz that had a market capitalization above $2 billion and a year-to-date (YTD) performance exceeding 15%. From this screened list, we identified the top 11 companies and ranked them according to their YTD performance as of September 8, 2025.
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 11 best-performing biotech stocks so far in 2025.
11. Galapagos NV (NASDAQ:GLPG)
Year-to-Date Performance: 22%
Galapagos NV (NASDAQ:GLPG) is a Belgian-based firm and is carving out a leading position in next-generation oncology through its CAR-T programs and decentralized manufacturing model, designed to deliver faster, more accessible treatments for patients with hematological cancers. It is among the best performing stocks.
Galapagos NV (NASDAQ:GLPG)’s momentum centers on GLPG5101, a CAR-T therapy for B-cell lymphomas. Recently, the FDA granted it an RMAT designation for relapsed/refractory mantle cell lymphoma, recognizing the promise shown in the ongoing Phase 1/2 ATALANTA-1 trial. The company also reported striking data at the 2025 ICML conference, with a 97% complete response rate and 100% MRD negativity in patients with indolent non-Hodgkin lymphoma. With a vein-to-vein time of just seven days, the therapy stands out from traditional CAR-T products.
Building on this success, the business is expanding ATALANTA-1 to new cohorts, including Richter transformation and chronic lymphocytic leukemia. Meanwhile, its second CAR-T candidate, GLPG5301, targeting multiple myeloma, is advancing through early development. These efforts highlight the corporation’s push to broaden its pipeline across high-need cancer indications.
A major differentiator for Galapagos NV (NASDAQ:GLPG) is its decentralized manufacturing platform, which allows “fresh” CAR-T therapies to be produced closer to patients. Recent collaborations with the Moffitt Cancer Center in the U.S. and CELLforCURE in Paris are strengthening this model, ensuring scalability and faster access.
10. Caris Life Sciences, Inc. (NASDAQ:CAI)
Year-to-Date Performance: 24.32%
Caris Life Sciences, Inc. (NASDAQ:CAI) is a biotech company that is driven by its breakthroughs in precision oncology, expansion of AI-powered molecular diagnostics, and recent FDA approvals.
A pivotal development came with the FDA approval of Caris’s MI Cancer Seek platform, the first diagnostic to combine whole exome and whole transcriptome sequencing on a single test for both adult and pediatric tumors. Validated for eight companion diagnostics, including a pan-cancer indication, the platform enables oncologists to comprehensively profile tumors from minimal samples, improving accuracy, access, and turnaround time. This marks a major step toward setting new standards in precision oncology workflows.
Beyond tissue-based testing, Caris Life Sciences, Inc. (NASDAQ:CAI) is advancing blood-based diagnostics with Caris Assure, which applies AI to DNA and RNA sequencing for noninvasive early detection and therapy monitoring. The business continues to expand collaborations, such as its partnership with Karmanos Cancer Institute, to accelerate the adoption of multi-technology tumor profiling in clinical practice.
With a growing database of more than 900,000 genomic profiles and 600,000 matched clinical datasets, Caris Life Sciences, Inc. (NASDAQ:CAI) is leveraging big data to fuel discoveries.
9. Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)
Year-to-Date Performance: 24.41%
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is strengthening its position in dermatology with ZORYVE, a novel, steroid-free PDE4 inhibitor available in cream and foam formulations for immune-mediated skin conditions such as plaque psoriasis, seborrheic dermatitis, and atopic dermatitis.
In 2025, the company achieved key milestones. In May, the FDA approved ZORYVE foam 0.3% for treating plaque psoriasis in adults and adolescents, including scalp and other hair-bearing areas that are often difficult to manage. This approval addressed significant treatment gaps and highlighted the drug’s strong efficacy profile. In September, Arcutis filed a supplemental New Drug Application seeking to expand ZORYVE cream’s label to include children as young as two years old with plaque psoriasis. If approved, it would become the only topical PDE4 inhibitor available for this pediatric population, offering a safe alternative to steroids and addressing a critical unmet need.
This progress has contributed to ARQT emerging among the best performing stocks in the healthcare sector, reflecting strong clinical execution and market potential. Another major decision looms in October, when the FDA is set to rule on ZORYVE cream 0.05% for atopic dermatitis in children aged two to five. Positive results could make it the first PDE4 topical option for young atopic dermatitis patients, further broadening Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)’s footprint in pediatric dermatology.
Clinical studies have shown ZORYVE provides rapid itch relief and significant skin clearance across age groups while maintaining a favorable safety profile. Beyond ZORYVE, Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is advancing a late-stage pipeline that includes a topical JAK inhibitor for alopecia areata and a novel CD200R agonist (ARQ-234) for atopic dermatitis, signaling long-term growth potential.
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