In this article, we will look at the 12 Best Drug Stocks to Buy Right Now.
On September 10, FDA Commissioner Dr. Marty Makary appeared on CNBC’s ‘Squawk Box’ to talk about the agency’s crackdown on misleading pharmaceutical advertisements.
The Food and Drug Administration announced a crackdown on misleading drug company ads, stating that it intends to send out thousands of warning letters along with around 100 cease and desist letters.
Dr. Marty stated that these ads are, by regulation, supposed to create a fair balance of information. According to him, doctors are united on the issue, with the consensus being that these ads have “distorted the doctor-patient relationship” because they create increased demand for medications, which are often considerably expensive, regardless of their clinical appropriateness.
READ ALSO: 13 High Growth International Stocks to Buy Right Now and 14 Best Cheap Stocks to Buy for Beginners.
He added that the US is, in fact, one of the only two countries in the world that tolerate ads at this pace, and so a majority of doctors believe that deciding the best medication should be left up to them.
Dr. Marty further stated that things changed in 1997 when a regulatory loophole allowed the companies to add the side effects on a website or somewhere else besides in the ad. The FDA is taking action to close that very loophole, which would require more disclosures and longer ads that may make the advertisements no longer feasible.
With these trends in view, let’s look at the best drug stocks to buy right now.
Our Methodology
We used stock screeners to make a list of top drug stocks and selected the top 12 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was sourced on September 12.
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).
12 Best Drug Stocks to Buy Right Now
12. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 55
Biogen Inc. (NASDAQ:BIIB) is one of the best drug stocks to buy right now. In a report released on September 12, Sumant Kulkarni from Canaccord Genuity reiterated a Buy rating on Biogen Inc. (NASDAQ:BIIB) and set a price target of $220.00.
Biogen Inc. (NASDAQ:BIIB) reported total revenue of $2.6 billion in its fiscal Q2 2025 results, up 7% year-over-year. GAAP diluted EPS for the quarter reached $4.33, up 8% year-over-year. Non-GAAP diluted EPS also rose 4% year-over-year to $5.47.
Biogen Inc. (NASDAQ:BIIB) is a global biopharmaceutical company that discovers, develops, and delivers advanced therapies for serious diseases worldwide.
Its medicine portfolio treats multiple sclerosis (MS), spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS).
11. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Number of Hedge Fund Holders: 57
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best drug stocks to buy right now. Teva Pharmaceutical Industries Limited (NYSE:TEVA) announced on September 9 that it attained Fast Track designation from the U.S. Food and Drug Administration for emrusolmin, which is an investigational treatment for Multiple System Atrophy (MSA) in Phase 2 development.
Management reported that there is an urgent need for new therapeutic options targeting MSA, a devastating and rare neurodegenerative disorder, because of the absence of treatments available that affect disease progression.
Part of a strategic collaboration with MODAG GmbH, a privately held German biotech company, emrusolmin is in the process of being evaluated in a Phase 2 trial to assess its efficacy and safety. Emrusolmin is a small molecule targeting the alpha synuclein protein, believed to be pivotally involved in the pathogenesis of MSA.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) added that the U.S. FDA granted Orphan Drug designation to emrusolmin for MSA in 2022.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments.
Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
