In this article, we will take a look at the 5 Best AI-Powered Healthcare Stocks to Buy According to Hedge Funds. For a deeper discussion and an extended list, please see the 10 Best AI-Powered Healthcare Stocks to Buy According to Hedge Funds.
5. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 72
On June 22, Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) said the FDA and the European Medicines Agency accepted regulatory applications for cemdisiran. It is to treat adults with “generalized myasthenia gravis” who are anti-acetylcholine receptor antibody-positive.
The company said the FDA granted “Priority Review” for the new drug application and set a target action date in November 2026 after the use of a priority review voucher. The biotech firm also expects a European Commission decision in the second half of 2027. The filings are supported by data from the Phase 3 NIMBLE trial assessing subcutaneous cemdisiran dosed every 12 weeks in adults with symptomatic gMG.
On the same day, RBC Capital maintained a “Sector Perform” rating and a $707 price target on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN). However, the firm called AbbVie’s acquisition of Apogee Therapeutics a “net negative” for the company. RBC Capital said the deal adds fuel to a potential next-generation competitor to Dupixent. It also adds AbbVie’s commercial expertise and longstanding dermatology market relationships behind Apogee’s IL-13 antibody program.
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a biotechnology firm. Its brand lineup includes Dupixent, Evkeeza, Eylea, Inmazeb, and Kevzara.
4. Stryker Corporation (NYSE:SYK)
Number of Hedge Fund Holders: 81
On June 2, Stryker Corporation (NYSE:SYK) announced the launch of TPX HD. It is a small bone power tool designed for demanding orthopaedic procedures, including total joint revisions, minimally invasive surgery, and oral maxillofacial procedures.
Mike Carlin, president of Stryker’s Ortho Tech division, said revision surgeries are among the most demanding procedures, particularly when cutting metal. He noted that TPX HD was built for situations where “visibility is limited, precision matters, and surgeons need a tool they can trust to perform.”
The firm stated TPX HD has several features. It includes a tapered attachment to build on visibility in confined spaces, a housing that helps reduce motor heat exposure at high operating speeds, and a shorter handpiece with an improved grip to improve ergonomics.
The company also said TPX HD delivers up to 296% more torque and operates up to 40% faster than its TPX Micro Drill at high speed. It also provides customizable controls through its CORE 2 Console and multiple specialized attachments.
Stryker Corporation (NYSE:SYK) is a medical technology company that offers products and services that help improve patient and healthcare outcomes. It works under the MedSurg and Neurotechnology, Orthopaedics, and Spine segments.
3. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 83
Pfizer Inc. (NYSE:PFE) is among the Best Healthcare Stocks.
On June 23, Reuters reported that Pfizer Inc. (NYSE:PFE) ‘s Chief International Commercial Officer, Alexandre de Germay, said China has moved ahead of Europe in pharmaceutical innovation and drug development.
De Germay commented that China now has “40% of all clinical studies in oncology” globally. He pointed out that the biopharma firm believes clinical development can move three times faster in China and at roughly half the cost compared with Europe.
De Germay said that back in 2024, China produced 28 innovative medicines, while Europe produced 18. “We have to compete with the U.S., but we also have to compete with China,” he said, and “the threat of China is reality.”
Reuters also reported that the US Food and Drug Administration launched Operation TrialBlazer to speed up early-stage drug research. Pfizer Chief Oncology Officer Jeffrey Legos disclosed that at least 20% of patients in Pfizer Inc. (NYSE:PFE)’s late-stage studies are enrolled in the United States.
Pfizer Inc. (NYSE:PFE) is a research-based global biopharmaceutical company that discovers, develops, manufactures, markets, sells, and distributes biopharmaceutical products worldwide.
2. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 113
On June 6, Reuters reported that a Los Angeles jury found Johnson & Johnson (NYSE:JNJ) was not negligent in a lawsuit alleging its talc products led to ovarian cancer in three women.
Reuters said the lawsuit was filed by the families of three women who died after using the company’s talc-based baby powder. The report also pointed out that over 67,000 plaintiffs have filed similar lawsuits. The firm stopped selling talc-based baby powder in the US in 2020 and then switched to a cornstarch product.
Separately, on June 15, Johnson & Johnson (NYSE:JNJ) declared the commercial launch of its Dual Energy THERMOCOOL SMARTTOUCH SF Platform in Europe.
The healthcare firm said the platform delivers both radiofrequency and pulsed-field energy through a single catheter. It also noted 12-month SmartfIRE data showing 86.9% effectiveness. President Johnson & Johnson, Ricardo Martin said the platform gives physicians “greater confidence to tailor treatment to each patient’s needs.”
Johnson & Johnson (NYSE:JNJ) is a holding corporation that researches, develops, manufactures, and sells healthcare products. It works through the Innovative Medicine and MedTech segments.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
Eli Lilly and Company (NYSE:LLY) is among the Best Healthcare Stocks Stocks.
On June 23, Reuters reported that Eli Lilly and Company (NYSE:LLY) expects to launch its oral weight-loss drug across Europe and Britain in the second half of 2026 or early 2027. Executive Vice President Patrik Jonsson said the company will start targeting patients paying out of pocket through telehealth partnerships.
Jonsson told Reuters the pharma firm will seek regulatory approvals before launch. It plans to expand its obesity plan for consumers through telehealth providers, e-commerce platforms, and direct-to-patient channels, applying lessons learned from its US launch.
He also said Eli Lilly and Company (NYSE:LLY) will continue pursuing public reimbursement where available. Nonetheless, there is uncertainty surrounding President Donald Trump’s “most-favoured-nation” drug pricing policy. Jonsson commented that “Our goal will still be public coverage, wherever possible,” and that the MFN framework “will play a role for all launches.”
Reuters reported that the “AI-powered healthcare company” signed a deal with the Trump administration last year. It is committed to providing MFN pricing for new medicines. The firm also plans to go after reimbursed prices consistent with its interpretation of the policy.
Eli Lilly and Company (NYSE:LLY) works in the discovery, development, manufacture, and sale of pharmaceutical products. The company’s products include diabetes, oncology, immunology, neuroscience, and other products and therapies.
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