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.
8. Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)
Number of Hedge Fund Holders: 28
Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH), a California-based company specializing in complex generics and proprietary medicines, is strengthening its position in the pharmaceutical market with major manufacturing and product expansion initiatives.
A centerpiece of Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)’s recent strategy is its plan to quadruple U.S. manufacturing capacity at its Rancho Cucamonga headquarters over the next few years. The project includes building a new state-of-the-art production plant with advanced automation and technology integration. By making all finished products domestically, the business aims to reduce reliance on global supply chains while creating new jobs in research, engineering, and manufacturing.
On the product side, the corporation recently secured FDA approval for its generic Iron Sucrose Injection, a bioequivalent to Venofer, with a Q3 2025 launch targeting the $513 million U.S. market for iron deficiency anemia. Its pipeline includes four additional ANDAs, a biosimilar insulin candidate, and an exclusive licensing deal with Nanjing Anji Biotechnology for three novel proprietary peptides. These assets, which include candidates for cancer, novel taxane therapies, and retinal disease, reflect the company’s push into innovative and high-value treatments, solidifying its position among the best pharmaceutical stocks to watch.
Commercial momentum is also being driven by BAQSIMI, Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH)’s glucagon nasal powder for severe hypoglycemia, which recorded a 51% sales increase in the most recent quarter. The product’s strong performance highlights the company’s ability to successfully commercialize therapies that address urgent and chronic patient needs.
7. Avadel Pharmaceuticals plc (NASDAQ:AVDL)
Number of Hedge Fund Holders: 29
Avadel Pharmaceuticals plc (NASDAQ:AVDL), a Dublin-based biopharmaceutical company, is gaining attention in the sleep medicine space with its flagship product LUMRYZ™, the first and only once-at-bedtime oxybate therapy approved for narcolepsy patients with cataplexy or excessive daytime sleepiness.
The company’s growth has accelerated in 2025, fueled by the rapid adoption of LUMRYZ™. In its most recent quarter, Avadel Pharmaceuticals plc (NASDAQ:AVDL) reported a 64% year-over-year sales increase, reflecting strong demand from both patients and providers. August earnings further exceeded analyst expectations, strengthening optimism that LUMRYZ™ could become the standard of care in narcolepsy management.
Clinical development remains a priority, with ongoing Phase 3 trials supporting the product’s safety and efficacy profile. Success in these studies could lead to label expansions and broader patient access in the near future. Avadel Pharmaceuticals plc (NASDAQ:AVDL) is also investing in new clinical programs that may extend LUMRYZ’s use beyond narcolepsy to other central nervous system disorders, signaling a long-term strategy to diversify its portfolio.
6. Lantheus Holdings, Inc. (NASDAQ:LNTH)
Number of Hedge Fund Holders: 34
Lantheus Holdings, Inc. (NASDAQ:LNTH), a leader in radiopharmaceuticals, is strengthening its position in diagnostic and therapeutic imaging with several recent milestones. The company’s focus on innovation and growth highlights its expanding role in advancing precision medicine.
A major development came as the FDA accepted Lantheus Holdings, Inc. (NASDAQ:LNTH)’ New Drug Application for a more efficient formulation of its F 18 PSMA PET imaging agent, with a PDUFA date set for March 6, 2026. The updated formulation is expected to boost batch size by roughly 50%, enhancing supply resilience and patient access to prostate cancer diagnostics.
In parallel, the business completed its acquisition of Life Molecular Imaging, a move that broadens its molecular imaging pipeline and research capabilities. The integration will be led by Dr. Ludger Dinkelborg, the newly appointed Head of R&D, who is expected to drive innovation across the expanded portfolio.
On the financial front, the corporation launched a $400 million share repurchase program, underscoring confidence in long-term growth and delivering a direct commitment to shareholders.
While competitive pricing pressures remain a headwind in the PSMA diagnostic market, Lantheus Holdings, Inc. (NASDAQ:LNTH) reported 2% domestic volume growth for its flagship PYLARIFY product, demonstrating resilient demand. With its regulatory progress and pipeline expansion, the company continues to position itself among the best pharmaceutical stocks, combining innovation and shareholder value. The combination of regulatory progress, pipeline expansion, and strategic financial initiatives positions the company to sustain momentum in 2025 and beyond.
5. Dynavax Technologies Corporation (NASDAQ:DVAX)
Number of Hedge Fund Holders: 39
Dynavax Technologies Corporation (NASDAQ:DVAX), a commercial-stage biopharmaceutical company specializing in innovative vaccines, is gaining momentum with strong financial results and pipeline progress. The company’s lead product, HEPLISAV-B, continues to drive growth, while new vaccine candidates in shingles, influenza, and Lyme disease highlight its expanding focus.
In Q2 2025, Dynavax Technologies Corporation (NASDAQ:DVAX) reported record net product revenue of $92 million for HEPLISAV-B, up 31% year-over-year. The business also raised its full-year revenue outlook to between $315 million and $325 million, which reflected strong demand for the hepatitis B vaccine. Efforts are underway to expand its use, including a retrospective study in adults on hemodialysis to support a supplemental FDA filing.
The business’s most closely watched program is its shingles vaccine candidate, Z-1018, now in a Phase 1/2 trial with top-line results expected in August 2025. The company believes Z-1018 could emerge as a best-in-class option in a multi-billion-dollar market currently dominated by limited players.
Beyond shingles, Dynavax is advancing its pandemic influenza program, testing its CpG 1018 adjuvant in an H5N1 vaccine, with key data anticipated in 2026. The company is also targeting Lyme disease, developing a multivalent protein subunit vaccine with CpG 1018, currently in IND-enabling studies and expected to enter clinical trials in 2027.
Dynavax Technologies Corporation (NASDAQ:DVAX) will further outline its growth strategy at the 2025 Wells Fargo Healthcare Conference on September 3, where executives are expected to discuss both commercial momentum and the expanding vaccine pipeline.
4. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Holders: 45
Novo Nordisk A/S (NYSE:NVO), a global pharmaceutical leader in diabetes and obesity care, continues to strengthen its position with new clinical data, expanded market approvals, and strategic investments in innovation. The company, known for blockbuster drugs Wegovy and Ozempic, is also extending its reach into cardiovascular and rare disease treatments while preparing for a leadership transition.
At the European Society of Cardiology Congress 2025, Novo Nordisk A/S (NYSE:NVO) is set to present fresh data highlighting the cardiovascular benefits of Wegovy and Ozempic, reinforcing their role not just in weight and glucose management but also in broader heart health. In a major regulatory milestone, Wegovy won U.S. approval for treating metabolic dysfunction-associated steatohepatitis (MASH) and secured approval for sale in China, unlocking significant new market opportunities.
The company’s pipeline is advancing rapidly. A late-stage candidate, CagriSema, combining semaglutide with amylin and calcitonin receptor agonists, could represent the next breakthrough in obesity care, while early trials of amycretin have shown strong appetite suppression and weight loss effects. These programs highlight the company’s commitment to sustaining leadership in obesity innovation, making NVO one of the best pharmaceutical stocks to watch closely.
Beyond drug development, Novo Nordisk A/S (NYSE:NVO) is leveraging technology and partnerships to boost growth. A collaboration with Nvidia aims to accelerate drug discovery through artificial intelligence, while the launch of NovoCare Pharmacy provides more affordable access to Wegovy via home delivery.
Looking ahead, the business faces a leadership transition as CEO Lars Fruergaard Jørgensen prepares to step down. At the same time, the firm is pursuing acquisitions in cardiovascular and rare blood disorders, underscoring its ambition to diversify beyond diabetes and obesity and secure long-term growth.
3. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)
Number of Hedge Fund Holders: 49
BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX), a biotechnology company specializing in rare disease therapeutics, reported strong operational and financial momentum in 2025, driven primarily by its flagship product, ORLADEYO, an oral therapy for hereditary angioedema (HAE). The company also markets intravenous peramivir for influenza and is advancing pipeline candidates such as BCX17725 for Netherton syndrome and avoralstat for diabetic macular edema.
In Q2 2025, BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) achieved record revenue of $163.4 million, a 49.4% year-over-year increase, fueled by record new patient prescriptions for ORLADEYO. This growth contributed to a net income of $5.1 million, a notable turnaround from a loss in the prior year. The company also strengthened its balance sheet, reducing debt by $50 million following the sale of its European ORLADEYO business, enhancing financial flexibility for future expansion.
Looking forward, BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)maintains global ORLADEYO revenue guidance of $580–600 million for 2025, despite the European divestiture. The company is also exploring strategic acquisitions of late-stage or commercial rare disease assets to expand its portfolio. Its pipeline continues to progress, including an ongoing Phase 1 trial of BCX17725 and other preclinical programs, underscoring its commitment to innovation in rare disease therapies.
2. Neurocrine Biosciences, Inc. (NASDAQ:NBIX)
Number of Hedge Fund Holders: 59
Neurocrine Biosciences, Inc. (NASDAQ:NBIX), a biopharmaceutical company focused on neurological, neuroendocrine, and neuropsychiatric disorders, continues to demonstrate robust growth through its FDA-approved treatments and advancing pipeline. The company’s portfolio includes key products such as INGREZZA for tardive dyskinesia, therapies for Huntington’s disease chorea, and Orilissa for endometriosis, supported by strategic partnerships with AbbVie and Mitsubishi Tanabe Pharma.
In Q2 2025, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) reported revenues of $687.5 million and net income of $107.5 million, exceeding expectations and reflecting strong year-over-year growth. This performance was driven by rising demand for neurology products, expanded payer access, and increased adoption across its portfolio. The business also completed a share buyback, highlighting confidence in its financial position and commitment to returning capital to shareholders.
Looking ahead, Neurocrine Biosciences, Inc. (NASDAQ:NBIX) is actively engaging with investors to communicate its growth strategy and pipeline progress. In August 2025, the CEO and investor relations team presented at the Canaccord Genuity 45th Annual Growth Conference, and the company plans to participate in multiple investor events in September. These efforts emphasize transparency and strengthen stakeholder confidence while showcasing ongoing developments in its neurology and neuropsychiatric programs.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 119
Eli Lilly and Company (NYSE:LLY) tops our list for being one of the best pharmaceutical stocks. It is a global pharmaceutical leader in diabetes, oncology, and neuroscience, and continues to advance its position with innovative therapies and strategic pipeline expansion. The company has established a strong presence in the high-growth GLP-1 and incretin markets with blockbuster drugs like Mounjaro and Zepbound, targeting diabetes and obesity.
A recent highlight is Eli Lilly and Company (NYSE:LLY)’s oral obesity drug orforglipron, which met all primary and key secondary endpoints in its Phase 3 trial, showing significant weight reduction of 10.5% in diabetes patients and 12.4% in obesity patients. These results set the stage for global regulatory submissions, including the FDA later in 2025, potentially making orforglipron the first approved oral obesity therapy. The development complements the business’s injectable treatments and strengthens its competitive position against rivals such as Novo Nordisk.
In addition, Eli Lilly and Company (NYSE:LLY) completed the acquisition of Verve Therapeutics, a genetic medicine company focused on cardiovascular disease, expanding its pipeline beyond metabolic disorders and signaling long-term portfolio diversification. The corporation is also advancing other pipeline assets, including retatrutide, a triple G-I hormone receptor agonist aimed at revolutionizing obesity treatment, alongside research into Mounjaro’s cardiovascular protective benefits for type 2 diabetes patients.
While we acknowledge the potential of LLY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than LLY and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
