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.
9. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 41
GSK plc (NYSE:GSK) is one of the best pharma stocks to invest in. J.P. Morgan analyst Richard Vosser maintained a Sell rating on GSK plc (NYSE:GSK) on December 8, setting a price target of £17.00.
In a separate development, GSK plc (NYSE:GSK) announced on November 20 that its subsidiary, TESARO, Inc., confirmed the initiation of litigation against AnaptysBio, Inc. in the Delaware Chancery Court, contending that the recent conduct by AnaptysBio is in material breach of the existing license agreement with TESARO about Jemperli.
According to the company, TESARO is entitled to terminate the current license agreement due to the breach, make a 50% reduction in royalties and milestone payments due by TESARO to AnaptysBio, and attain a perpetual and irrevocable license to dostarlimab.
It further reported that the litigation was initiated by TESARO after the allegations by AnaptysBio that the former did not fulfil certain license agreement requirements stipulated in March 2014 and that AnaptysBio intends to revoke TESARO’s licence for dostarlimab. Management reported that TESARO and GSK plc (NYSE:GSK) firmly believe that the allegations are meritless.
At present, Jemperli holds approval in more than 35 countries for use in particular endometrial cancers, which is the most common gynaecologic cancer in the United States. GSK plc (NYSE:GSK) and TESARO have reported considerable growth for Jemperli, supported by label expansions in endometrial cancer, including in the EU and the US. In addition, a clinical program focused on evaluating the treatment’s potential use in other cancers, such as colon, rectal, and head and neck, is also underway.
Formerly known as GlaxoSmithKline, GSK plc (NYSE:GSK) is a global biopharma company that develops and distributes a range of vaccines, medications, and consumer health items. It is based in the United Kingdom and has over 20 vaccines in its portfolio. The company also develops cancer treatments for multiple myeloma, ovarian cancer, and endometrial cancer, among others.
8. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 50
Novo Nordisk A/S (NYSE:NVO) is one of the best pharma stocks to invest in. Argus analyst Jasper Hellweg downgraded Novo Nordisk A/S (NYSE:NVO) to Hold from Buy on December 8, without assigning a price target. The analyst told investors in a research note that the company is experiencing a drop in marketshare in its GLP-1 drug category, including Ozempic and Wegovy.
It is also agreeing to bring the prices of these drugs down in the United States markets, and is expected to soon see the emergence of generic versions of these products in some international markets. At the same time, some key clinical trials by Novo Nordisk A/S (NYSE:NVO) have “failed to impress”, according to the analyst, adding that the recent semaglutide trials do not confirm superiority compared to placebo in the reduction of progression in Alzheimer’s disease.
Separately, Novo Nordisk A/S (NYSE:NVO) submitted an sNDA to the FDA for a higher dose of semaglutide injection 7.2 mg for use in conjunction with higher physical activity and a reduced-calorie diet for chronic weight management in adults with obesity. Management stated that the review is anticipated within 1-2 months under the CNPV expedited program after the FDA accepts the filing. If approved, the investigational semaglutide 7.2 mg injection would provide the option of a higher dose for increased weight loss potential in adults with obesity.
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company specializing in diabetes care. It develops, discovers, manufactures, and markets pharmaceutical products. Its operations are divided into two business segments: biopharmaceuticals and diabetes and obesity care. The latter segment covers GLP-1, insulin, and other protein-related products.
7. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 54
AstraZeneca PLC (NASDAQ:AZN) is one of the best pharma stocks to invest in. AstraZeneca PLC (NASDAQ:AZN) received a rating update from JPMorgan on December 8, with the firm lifting the price target on the stock to 16,000 GBP from 14,000 GBP while maintaining an Overweight rating on the stock. The rating update came as part of rating adjustments by the firm in the European pharma group as part of its 2026 outlook.
Meanwhile, AstraZeneca PLC (NASDAQ:AZN) announced on December 2 that the US Food and Drug Administration (FDA) in the US accepted its New Drug Application (NDA) for baxdrostat to treat adult patients with hard-to-control (uncontrolled or treatment-resistant) hypertension as an add-on to other antihypertensive medicines when they fail to provide a suitable lowering of blood pressure. Management expects the Prescription Drug User Fee Act (PDUFA) date during fiscal Q2 2026 after the use of a Priority Review voucher.
Baxdrostat is a potential first-in-class, highly selective aldosterone synthase inhibitor (ASI) specialised to lower blood pressure through the inhibition of the production of aldosterone, which is a key hormone responsible for raising blood pressure and the risk of kidney and heart problems.
The NDA is based on data from the BaxHTN Phase III trial, presented during a Hot Line session at the European Society of Cardiology (ESC) Congress 2025 and simultaneously published in the New England Journal of Medicine. Baxdrostat exhibited general tolerability with a safety profile consistent with its mechanism of action, with no unanticipated safety findings and mostly mild adverse effects.
AstraZeneca PLC (NASDAQ:AZN) is a biopharmaceutical company that explores, develops, manufactures, and commercializes prescription medicines. It supplies its products and services to specialty and primary care physicians.
6. Gilead Sciences, Inc. (NASDAQ:GILD)
Number of Hedge Fund Holders: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best pharma stocks to invest in. Cantor Fitzgerald analyst Carter Gould maintained a Buy rating on Gilead Sciences, Inc. (NASDAQ:GILD) on December 7, setting a price target of $135.
The same day, Kite, a Gilead Sciences, Inc. (NASDAQ:GILD) company, released a new analysis showing that second-line Yescarta therapy offers consistent benefits in patients living with relapsed/refractory large B-cell lymphoma, even among those ineligible for the previous standard of care, high-dose chemotherapy after an autologous stem cell transplant (ASCT).
Management reported that the benefits were noted irrespective of eligibility for previous standard of care of high-dose chemotherapy and stem cell transplant for second-line treatment. Professor Roch Houot, Head of Haematology Department, University Hospital of Rennes, France, and coordinator of the ALYCANTE study, stated the following about the development:
“Patients with large B-cell lymphoma who are ineligible for stem cell transplants face limited treatment options and poor outcomes due to age, co-morbidities and other factors. This analysis reinforces that Yescarta should be considered earlier in a patient’s treatment paradigm given its curative potential as a one-time treatment and further establishes CAR T as the new standard of care for second-line treatment of large B-cell lymphoma.”
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that advances medicines to prevent and treat serious diseases such as cancer, immunodeficiency virus (HIV), viral hepatitis, and COVID-19. Its portfolio of drugs focuses on medical areas with unmet needs and includes AmBisome, Atripla, Biktarvy, Cayston, Complera, and others. Gilead Sciences, Inc. (NASDAQ:GILD) operates in over 35 countries.
5. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 76
Bristol-Myers Squibb Company (NYSE:BMY) is one of the best pharma stocks to invest in. On December 4, Jefferies reiterated a Buy rating on Bristol-Myers Squibb Company (NYSE:BMY) with a price target of $68.
The same day, Scotiabank lifted the price target on Bristol-Myers Squibb Company (NYSE:BMY) to $53 from $45 while maintaining a Sector Perform rating on the shares. The firm told investors that it anticipates several pivotal and registrational data readouts in 2026, adding that these readouts have a risk/reward to the upside.
The two rating updates came the same day Bristol-Myers Squibb Company (NYSE:BMY) announced that the U.S. Food and Drug Administration (FDA) granted approval for Breyanzi to treat adult patients living with relapsed or refractory (R/R) marginal zone lymphoma (MZL) who have received at least two prior lines of systemic therapy. Breyanzi is a CD19-directed chimeric antigen receptor (CAR) T cell therapy and is administered as a one-time infusion.
The approval makes it the only FDA-approved CAR T cell therapy for five cancer types, which is the most of any CD19-directed CAR T cell therapy. Breyanzi exhibited durable and deep responses in 95.5% of patients in the MZL cohort of TRANSCEND FL, while demonstrating a consistent safety profile.
Bristol-Myers Squibb Company (NYSE:BMY) is a biopharmaceutical company that discovers, develops, and delivers advanced medicines for serious diseases. Its medicines fall into various therapeutic classes, including hematology, oncology, cardiovascular, immunology, and neuroscience.
4. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is one of the best pharma stocks to invest in. Pfizer Inc. (NYSE:PFE) announced on December 6 results from the Phase 3 BASIS study evaluating HYMPAVZI for adults and adolescents living with hemophilia A or B with inhibitors.
The results showed the superiority of HYMPAVZI for the improvement of bleeding outcomes in comparison with on-demand (OD) treatment with bypassing agents, reducing bleeds by 93% in adolescents and adults with hemophilia A or B with inhibitors. Management reported that HYMPAVZI was administered with a once-weekly subcutaneous injection that was straightforward and did not require extensive preparation or treatment-related lab monitoring.
“It is encouraging that these data demonstrate the potential of HYMPAVZI to combine efficacy, safety, and straightforward administration for adults and adolescents living with hemophilia A or B with inhibitors and address a significant patient need,” Michael Vincent, M.D., Ph.D., Chief Inflammation & Immunology Officer at Pfizer Inc. (NYSE:PFE), said regarding the situation. “We look forward to potentially making this treatment available for these patients as Pfizer continues its ongoing effort spanning more than 40 years to improve hemophilia care.”
Pfizer Inc. (NYSE:PFE) further stated that it submitted the data for review by the U.S. Food and Drug Administration and the European Medicines Agency. HYMPAVZI currently holds approval in over 40 countries as a treatment for eligible patients 12 years of age and older with hemophilia A or hemophilia B, without factor VIII inhibitors and without factor IX inhibitors, respectively.
Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that manufactures, develops, markets, and sells biopharmaceutical products worldwide. It advances wellness, prevention, treatment, and cures in developing and emerging markets.
3. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 92
Merck & Co., Inc. (NYSE:MRK) is one of the best pharma stocks to invest in. Guggenheim lifted the price target on Merck & Co., Inc. (NYSE:MRK) to $122 from $104 on December 5 while maintaining a Buy rating on the shares. The firm cited the inclusion of probability-adjusted revenues for Winrevair in the population investigated in the Phase 2 CADENCE trial as a significant factor supporting the rating upgrade.
Similarly, Scotiabank analyst Louise Chen and Goldman Sachs analyst Asad Haider also raised their price targets on Merck & Co., Inc. (NYSE:MRK) on December 4 and December 2, respectively. Chen lifted the price target to $120 from $105 while maintaining an Outperform rating, while Haider raised the price target to $120 from $92 while keeping a Buy rating on the shares.
In another development, Merck Animal Health, a division of Merck & Co., Inc., Rahway, N.J., USA (NYSE:MRK) that is known as MSD Animal Health outside of the United States and Canada, announced on December 4 that the U.S. Food and Drug Administration (FDA) granted a conditional approval for EXZOLT™ CATTLE-CA1 (fluralaner topical solution). This makes EXZOLT™ CATTLE-CA1 the first in its class and the only product holding conditional approval to both treat and prevent infestations caused by New World screwworm (Cochliomyia hominivorax) larvae (myiasis) and to treat and control cattle fever tick (Rhipicephalus microplus).
Merck & Co., Inc. (NYSE:MRK) is a biopharmaceutical company that delivers health solutions to advance the treatment and prevention of diseases in animals and people. Its Pharmaceutical segment offers vaccines and human health pharmaceutical products, typically therapeutic and preventive agents. Its Animal Health segment develops, discovers, manufactures, and markets a range of vaccines and veterinary pharmaceutical products.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 103
Johnson & Johnson (NYSE:JNJ) is one of the best pharma stocks to invest in. Johnson & Johnson (NYSE:JNJ) announced on December 6 the updated results from the Phase 3 CARTITUDE-4 study that supported durable treatment-free remissions as early as second line treatment with CARVYKTI, reporting that the disease did not progress and no further treatment was required at 30 months in 80% of as-treated patients with relapsed or refractory multiple myeloma (RRMM) and standard-risk cytogenetics treated with CARVYKTI as early as first relapse.
Management reported that additional translational analyses shows that the patients who received CARVYKTI in earlier lines exhibited improved immune fitness, which draws a correlation with longer progression-free survival (PFS). Luciano J. Costa, M.D., Ph.D., Professor of Medicine at the University of Alabama and principal investigator of the CARTITUDE-4 study, stated that the data hints that a single infusion of CARVYKTI for standard-risk patients may offer additional advantages as early as the second line of therapy, and that deeper and more durable responses can be acheived by treating patients with multiple myeloma after first relapse. This, according to Luciano, can push the treatment paradigm closer to a potential long-term remission, and ultimately, cure.
Johnson & Johnson (NYSE:JNJ) develops, manufactures, and sells products in the healthcare field. The company operates through two segments: Innovative Medicine and MedTech.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 114
Eli Lilly and Company (NYSE:LLY) is one of the best pharma stocks to invest in. On December 7, Eli Lilly and Company (NYSE:LLY) announced results from the Phase 3 BRUIN CLL-314 clinical trial that was evaluating Jaypirca (pirtobrutinib) versus Imbruvica (ibrutinib) in patients living with chronic lymphocytic leukemia or small lymphocytic lymphoma (CLL/SLL) who were either BTK inhibitor-naïve or treatment-naïve. Jaypirca is a non-covalent Bruton tyrosine kinase inhibitor, while Imbruvica is a covalent BTK inhibitor.
The results showed that Pirtobrutinib met its primary endpoint of non-inferiority on overall response rate (ORR) compared to ibrutinib in the intent-to-treat (ITT) population, and also had numerically higher ORR rates.
In addition, progression-free survival (PFS), while immature, and trended in pirtobrutinib’s favor in comparison with ibrutinib across all populations. This included a 76% drop in the risk of disease progression or death in treatment-naïve patients, which is the subgroup that has the longest follow-up.
Management stated that BRUIN CLL-314 marks the first randomized study comparing covalent and non-covalent BTK inhibitors and directly comparing any BTK inhibitors in the treatment-naïve setting, providing significant findings for advancements in the field and patient care. The efficacy results, along with the safety profile of pirtobrutinib, offer solid evidence supporting pirtobrutinib’s role in the treatment course for patients with CLL or SLL.
Eli Lilly and Company (NYSE:LLY) develops, manufactures, discovers, and sells pharmaceutical products. These products span oncology, diabetes, immunology, neuroscience, and other therapies.
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