In this article, we will be taking a look at the 11 Best Pharma Stocks to Invest in for the Long Term.
According to a recent White House announcement, President Trump wrote letters to 17 major pharmaceutical companies outlining the actions they could take to bring the prices of prescription pharmaceuticals in the United States down to “most favored nation” (MFN) levels by September 29.
President Trump’s demand for “binding commitments” to lower drug prices sent pharmaceutical companies “scrambling to respond,” according to a CNBC report on August 1. The report also stated that if the companies “refuse to step up,” the government would not stop using all of its “arsenal to protect American families from continued abusive drug pricing practices.” However, the administration did not specify what these actions may include.
Amgen, AbbVie, AstraZeneca, Eli Lilly, Boehringer Ingelheim, Bristol-Myers Squibb, EMD Serono, Roche’s subsidiary Genentech, GSK, Merck, Pfizer, Gilead, Johnson & Johnson, Novo Nordisk, Novartis, Sanofi, and Regeneron were among the 17 large pharmaceutical companies that got letters.
President Trump also warned the firms that they must provide MFN prices to all Medicaid consumers, which is the American health program for low-income individuals. The corporations were also instructed not to sell medications to developed markets at prices lower than those charged in the United States.
Additionally, pharmaceutical corporations were instructed to sell the drugs directly to American consumers, eliminating the role of pharmacy benefit managers (PBMs), which act as intermediaries.
In a message to customers, experts under the direction of Seiji Wakao commented on the situation:
“While the government’s latest announcement may appear harsh, we think it is likely that the matter is being discussed to some extent between the companies and the government, and we believe no changes that would have a significant negative impact on pharmaceutical companies will occur in the short term.”
In a separate note, JPMorgan analysts said that while the new directive was sent as a clear warning, pharmaceutical companies might have some time to react because of ongoing negotiations with the US government.
With these trends in view, let’s look at the best pharma stocks to invest in for the long term.
Our Methodology
For our methodology, we begin by screening stocks with revenue growth above 18% over the past five years and a market capitalization exceeding $1 billion. From this filtered list, we then rank the companies according to hedge fund sentiment in Q2 2025, as reported by Insider Monkey.
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 pharma stocks to invest in for the long term.
11. Harrow, Inc. (NASDAQ:HROW)
Number of Hedge Fund Holders: 19
Harrow, Inc. (NASDAQ:HROW), a leading U.S.-based pharmaceutical company, is entering a transformative phase as it expands its presence in ophthalmic disease management and is among the best pharmaceutical stocks. With a focus on both anterior and posterior eye conditions, the company has built a diverse portfolio that includes branded drugs, compounded formulations, and now biosimilars, moves that are solidifying its leadership in the fast-growing eye care market.
A key development in 2025 was Harrow, Inc. (NASDAQ:HROW)’s agreement with Samsung Bioepis, granting it exclusive U.S. rights to a portfolio of ophthalmology biosimilars. The deal includes FDA-approved drugs such as BYOOVIZ, referencing Lucentis, and OPUVIZ, referencing Eylea, two of the most widely prescribed anti-VEGF therapies for retinal disorders. With roughly 8.5 million units of anti-VEGF treatments administered annually, the addition of these biosimilars immediately diversifies the business’s offerings and positions it to compete with established industry leaders.
Beyond biosimilars, Harrow, Inc. (NASDAQ:HROW) is also advancing its branded portfolio. The corporation recently acquired rights to BYQLOVI, a clobetasol propionate ophthalmic suspension approved for post-surgical inflammation and pain. Expected to launch in early 2026, BYQLOVI marks the first new ophthalmic steroid in its category in more than 15 years. At the same time, patient access initiatives such as the VAFA (VEVYE Access for All) program and the Harrow Cares HUB are expanding coverage and reimbursement support for treatments like VEVYE and IHEEZO, further boosting adoption.
Looking ahead, Harrow, Inc. (NASDAQ:HROW) expects continued momentum in 2025 and 2026 as both new branded therapies and biosimilars gain traction.
10. Collegium Pharmaceutical, Inc. (NASDAQ:COLL)
Number of Hedge Fund Holders: 20
Collegium Pharmaceutical, Inc. (NASDAQ:COLL) is strengthening its position as a leader in responsible pain management and ADHD treatment, which is driven by new clinical research and market growth in 2025. The company has built a diverse portfolio addressing chronic pain and attention disorders, and recent initiatives highlight its commitment to evidence-based innovation.
A major development this year is Collegium Pharmaceutical, Inc. (NASDAQ:COLL)’s plan to present nine real-world data posters from its pain management portfolio at PAINWeek 2025 in Las Vegas. These presentations, scheduled for September, will provide fresh insights into the use and effectiveness of products such as BELBUCA, Xtampza ER, and the Nucynta franchise. By sharing real-world evidence, the business is reinforcing its focus on clinical transparency and patient-centered outcomes, while supporting healthcare providers with data to guide treatment decisions.
Collegium Pharmaceutical, Inc. (NASDAQ:COLL)’s financial performance further reflects its momentum, solidifying its place among the best pharmaceutical stocks to watch in 2025. In the second quarter of 2025, the corporation reported record pain portfolio revenues of $155.4 million, with all three core products showing year-over-year growth. Alongside this, its ADHD therapy Jornay PM, acquired through the 2024 purchase of Ironshore Therapeutics, has emerged as a major growth driver, with prescriptions climbing 23% and prescriber reach at an all-time high.
9. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)
Number of Hedge Fund Holders: 23
ANI Pharmaceuticals, Inc. (NASDAQ:ANIP), a specialty pharmaceutical company focused on rare diseases and complex generics, is accelerating its growth through new product approvals and strategic portfolio expansion in 2025. With key assets such as Purified Cortrophin Gel and retina therapies ILUVIEN and YUTIQ, the company is advancing treatments that address critical unmet needs while strengthening its generics platform.
A major milestone this year was the FDA approval of a prefilled syringe presentation of Cortrophin Gel in March 2025. Launched in the second quarter, the new format has seen strong uptake across neurology, rheumatology, nephrology, ophthalmology, and emerging uses like pulmonology and acute gouty arthritis, driving record levels of new patient starts. ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) also presented preclinical data at EULAR 2025, highlighting Cortrophin Gel’s potential in collagen-induced inflammatory arthritis, and initiated a Phase 4 trial to study its use in acute gout flares. These efforts underscore the company’s strategy of broadening indications and reinforcing its leadership in rare disease care.
In addition to rare disease therapies, ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) is advancing its retina portfolio with ILUVIEN and YUTIQ, backed by new clinical findings such as the NEW DAY trial for diabetic macular edema. The business is managing a U.S. promotional transition for these assets, aiming to expand indications and influence treatment approaches in ophthalmology.
