In this article, we will look at the 11 Best Pharma Stocks to Invest In.
CNBC reported on December 1 that the UK and US governments reached a deal on drug pricing. As laid out by the two governments, the deal has two parts: the first entails the UK’s National Health Service (NHS) paying more for pharmaceuticals. This has been a bone of contention on the US side for several years, with claims that the UK government is not paying high enough prices for US pharmaceuticals. This long-standing contention would now change in exchange for an agreement that import taxes on pharmaceuticals from the UK to the United States be set at zero for the next three years.
Reuters reported the same day that the agreement entails a 25% increase in the net price the UK pays for US medicines, in exchange for which UK-made medicines, medical technology, and drug ingredients would be exempt not only from Section 232 sectoral tariffs but also from any future Section 301 country tariffs.
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United States Trade Representative Jamieson Greer stated the following about the situation in a statement:
“The United States and the United Kingdom announce this negotiated outcome pricing for innovative pharmaceuticals, which will help drive investment and innovation in both countries.”
Reuters further reported on December 3 that Germany’s health minister does not anticipate the deal between Britain and the United States to affect drug prices in Germany or on statutory health insurance expenditures, according to a spokesperson. The spokesperson further said:
“This is due to the existing legal regulations governing drug prices in Germany. These regulations are the ‘overriding’ ones, and therefore we don’t expect any changes.”
With these trends in view, let’s look at the best pharma stocks to invest in.
Our Methodology
We used Finviz to compile a list of the best pharma stocks and selected the top 11 with the highest number of hedge fund holders as of Q3 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on December 8.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11 Best Pharma Stocks to Invest In
11. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 32
Sanofi (NASDAQ:SNY) is one of the best pharma stocks to invest in. Sanofi (NASDAQ:SNY) was downgraded to Neutral from Overweight by JPMorgan on December 8, with the firm also bringing the price target down to EUR 95 from EUR 105.
The firm told investors that it is adjusting its ratings in the European pharma group to take into account its 2026 outlook. It anticipates pipeline readouts to drive sector performance, albeit if a considerable amount of the concern surrounding the effect of US price pressure on sector earnings dissipates in Q4. The firm thus downgraded the companies in the sector that did not have pipeline readouts in 2026.
In a separate development, Sanofi (NASDAQ:SNY) announced the completion of its acquisition of Vicebio Ltd on December 4, bringing an early-stage combination vaccine candidate for human metapneumovirus (HMPV) and respiratory syncytial virus (RSV), both of which are respiratory viruses.
With Vicebio’s ‘Molecular Clamp’ technology, the acquisition would support the company’s capabilities in vaccine development and design, complementing Sanofi’s (NASDAQ:SNY) position in respiratory vaccines with the acquired vaccine candidate. It allows the company to provide increased patient and physician choice in RSV and HMPV through the addition of a non-mRNA vaccine to its pipeline.
Sanofi (NASDAQ:SNY) 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 best pharma stocks to invest in. On December 8, Novartis AG (NYSE:NVS) was upgraded to Overweight from Neutral by JPMorgan. The firm lifted the price target to CHF 125 from CHF 95, releasing adjusted ratings for companies under its coverage in the European pharma group as part of its 2026 outlook.
JPMorgan anticipates performance in the sector to be driven by pipeline readouts and downgraded the companies that had a lack of pipeline readouts in 2026.
Separately, Novartis AG (NYSE:NVS) announced on November 24 that Itvisma attained FDA approval to treat children two years and older, adults, and teens with spinal muscular atrophy, with a confirmed mutation in the survival motor neuron 1 (SMN1) gene. The approval makes it the first and only gene replacement therapy available for this broad population.
Management reported that Itvisma exhibited improved motor function and stabilization in patients irrespective of SMA treatment history in Phase III studies, with a one-time dose of the treatment replacing the SMN1 gene, and potentially reducing the need for chronic SMA treatment. Novartis AG (NYSE:NVS) added that gene replacement therapy is now available for eligible people, irrespective of age, living with SMA.
Headquartered in Basel, Switzerland, Novartis AG (NYSE:NVS) develops, markets, and manufactures a range of healthcare and pharmaceutical products. Its operations span the Innovative Medicines, Sandoz, and Corporate segments.
