In this article, we will be taking a look at the 8 Best Immunology Stocks to Buy According to Hedge Funds.
Despite growing geopolitical tensions related to the Iran war, Callanish Capital CEO Haig Bathgate shared an optimistic stance on global markets during an appearance on CNCB on May 7. Although conflicts frequently cause short-term volatility, he contended that their long-term effects on equity markets are typically minimal. He claims that structural factors often have a greater influence on markets than transient geopolitical shocks.
Bathgate noted that investors frequently become unduly swayed by current events and stressed the significance of historical perspective. According to him, conflicts usually only cause temporary interruptions, affecting some industries more than others, and they hardly ever change long-term market trends. He also noted that US equity markets had been improving near the close of last year, even prior to the intensification of the Iranian dispute. As a result, he thinks investors should pay more attention to long-term factors like artificial intelligence, the dynamics of the energy supply, and long-term profitability trends influenced by capital expenditure cycles and technological innovation rather than short-term geopolitical noise.
Immunology is one of the most promising and quickly developing fields in the biotechnology and pharmaceutical sectors in this larger macro setting. Due to the growing demand for novel treatments for infectious illnesses, cancer, and autoimmune disorders, the worldwide immunotherapy market is expected to grow from $240 billion in 2023 to $1.3 trillion by 2033.
The rising worldwide burden of disease supports this rise. About 20 million new cases of cancer were found in 2022 alone, and 9.7 million individuals lost their lives to the disease. By 2050, there will likely be over 35 million cancer cases annually, which will raise the need for innovative therapies like immunotherapy. These treatments can be used alone or in combination with chemotherapy and other tactics, like immunomodulating drugs that enhance the body’s ability to recognize and eradicate cancer cells.
Due to significant regulatory advancements and FDA approvals for tumor-agnostic medications, North America accounted for approximately 48.19% of the worldwide immunotherapy market in 2023. As more than 2 million more cases of cancer are predicted in the US alone in 2024, demand will increase. Next-generation immunotherapies for complicated diseases like lymphoma and B-cell leukemia are being developed through research projects like those of Canada’s National Research Council.
With that being said, let’s now move on to the best immunology stocks.
Our Methodology
For our methodology, we screened cancer and immunology ETFs and selected the top eight stocks based on recent news flow and developments. We then ranked these stocks in ascending order according to their total number of hedge fund holdings as of Q1 2026, as reported by the Insider Monkey database.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Here is our list of the 8 best immunology stocks to buy according to hedge funds.
8. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Number of Hedge Fund Holders: 18
Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best immunology stocks on our list.
TheFly reported on May 18 that a federal jury in the U.S. District Court for the District of Massachusetts determined that Takeda Pharmaceutical Company violated U.S. antitrust laws by engaging in an agreement that delayed the introduction of a generic version of its Amitiza medication. The case centered on claims that the company improperly restricted market competition through a so-called “pay-for-delay” arrangement with a rival manufacturer. As a result of the verdict, the jury ordered TAK to pay substantial monetary damages amounting to several hundred million dollars.
In a separate move, on May 4, Takeda Pharmaceutical Company Limited announced that its pivotal Phase 2/3 clinical study, TAK-881-3001, successfully achieved its primary endpoint in patients with primary immunodeficiency disease. The trial evaluated pharmacokinetic performance and demonstrated that TAK-881, a high-concentration subcutaneous immunoglobulin therapy facilitated with recombinant hyaluronidase, was comparable to the established HYQVIA treatment in terms of drug exposure.
Secondary outcomes indicated similar safety, efficacy, and tolerability profiles between the two therapies, with no new safety concerns identified. The results also suggested that TAK-881 may enable effective immune protection while reducing infusion volume and time, potentially offering a more convenient dosing experience for patients. The study included both adult and pediatric participants and supports continued development of TAK-881 as a next-generation immunoglobulin therapy, with additional analyses ongoing and regulatory submissions planned across major global markets in 2026.
Takeda Pharmaceutical Company Limited is a global biopharmaceutical company headquartered in Tokyo and Osaka, Japan. Founded in 1781, it is Japan’s largest pharmaceutical firm and ranks among the top 20 globally.
7. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 30
Twist Bioscience Corporation (NASDAQ:TWST) is among the best immunology stocks.
TheFly reported on May 5 that a Guggenheim analyst increased the price target on TWST from $55 to $60 while maintaining a Buy rating on the stock. The revision followed the company’s latest quarterly results and came ahead of its investor day held on May 21. The adjustment reflects updated financial estimates and expectations after recent performance data. The analyst’s note highlighted continued positive sentiment toward the company’s outlook, with valuation changes incorporated based on the most recent earnings report and upcoming strategic presentation to investors.
Twist Bioscience Corporation reported its fiscal second quarter 2026 financial results on May 4, 2026, covering the period ended March 31, 2026. The company recorded revenue of $110.7 million, representing 19% year-over-year growth, driven by gains in both DNA Synthesis and Protein Solutions as well as NGS Applications. Gross margin improved to 51.6%, while research and development expenses declined compared to the prior year period. Selling, general, and administrative expenses increased year over year, contributing to a wider net loss of $44.0 million, or $0.71 per share. Adjusted EBITDA showed a modest improvement but remained negative at $13.3 million.
The company ended the quarter with approximately $172 million in cash and investments and raised its full-year outlook, projecting continued revenue growth and gross margin expansion, with expectations of approaching adjusted EBITDA breakeven in the fourth quarter of fiscal 2026.
Twist Bioscience Corporation is a biotechnology company that engineers synthetic DNA on silicon to support immunology and drug discovery. It provides tools like antibody discovery platforms, DNA libraries, and sequencing solutions to help researchers study and engineer the immune system.
6. Kymera Therapeutics, Inc. (NASDAQ:KYMR)
Number of Hedge Fund Holders: 37
Kymera Therapeutics, Inc. (NASDAQ:KYMR) is among the best immunology stocks to invest in.
TheFly reported on May 6 that Canaccord initiated coverage on KYMR with a Buy rating and a price target of $106. The firm highlighted the company’s position in developing advanced therapies within the immunology and inflammation field, describing its platform as highly innovative. Attention was drawn to KT-621, which is currently being evaluated in Phase IIb clinical trials for atopic dermatitis and eosinophilic asthma. The outlook provided includes expectations for regulatory progress, with potential approval in atopic dermatitis projected for 2030 and a later launch in asthma around 2031. Long-term revenue potential was also outlined, with estimates indicating multi-billion-dollar sales opportunities by 2036 across both indications, supported by anticipated commercial expansion and royalty streams.
Kymera Therapeutics, Inc. announced on May 15 that new clinical findings from its BroADen Phase 1b study of KT-621, an oral STAT6 degrader, would be presented at multiple upcoming scientific meetings, including the Society for Investigative Dermatology Annual Meeting in Chicago and the American Thoracic Society Respiratory Innovation Summit in Orlando. The data highlight strong target engagement with significant STAT6 reduction in both skin and blood, along with downstream decreases in key inflammatory biomarkers linked to atopic dermatitis and asthma.
Analyses also showed improvements in gene expression profiles and early clinical activity signals, supporting potential therapeutic benefit. Additional results indicated a favorable safety profile and ongoing evaluation in Phase 2b trials across atopic dermatitis and asthma, with further data expected in 2027.
Kymera Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing oral targeted protein degraders for immune and inflammatory diseases. Using its proprietary Pegasus platform, it leverages the body’s ubiquitin-proteasome system to selectively eliminate disease-causing proteins as an alternative to injectable biologics.
5. MoonLake Immunotherapeutics (NASDAQ:MLTX)
Number of Hedge Fund Holders: 48
MoonLake Immunotherapeutics (NASDAQ:MLTX) is among the best immunology stocks.
TheFly reported on May 11 that H.C. Wainwright increased its price objective on MLTX to $45 from $40 while reaffirming a Buy rating on the stock. The revision followed encouraging regulatory progress for sonelokimab, the company’s nanobody-based therapy being developed for hidradenitis suppurativa. The firm highlighted the favorable outcome of MLTX’s final pre-application discussions with the FDA regarding the program, signaling continued advancement toward potential regulatory filings and supporting confidence in the treatment’s clinical development strategy.
On May 10, MoonLake Immunotherapeutics provided a corporate and financial update highlighting regulatory progress for sonelokimab in hidradenitis suppurativa. Following a successful pre-BLA meeting with the FDA held on April 1, the company confirmed alignment on its planned biologics license application submission strategy, proposed labeling approach, and use of data from the MIRA and VELA-TEEN studies. MoonLake stated that the BLA filing for sonelokimab is scheduled for late September 2026, with potential FDA acceptance anticipated by the end of November 2026.
The company also noted continued advancement across additional clinical programs, including Phase 3 studies in psoriatic arthritis. Financially, MLTX ended the first quarter with $357.9 million in cash, cash equivalents, and short-term marketable securities, while maintaining expected funding capacity into the end of 2027 alongside access to up to $400 million through its Hercules Capital debt agreement.
MoonLake Immunotherapeutics is a clinical-stage biopharmaceutical company developing treatments for inflammatory skin and joint diseases. Its lead therapy, sonelokimab, uses Nanobody technology to target IL-17A and IL-17F cytokines involved in immune-related conditions.
4. Moderna, Inc. (NASDAQ:MRNA)
Number of Hedge Fund Holders: 52
Moderna, Inc. (NASDAQ:MRNA) is among the best immunology stocks to invest in.
TheFly reported earlier this month, on May 4, that UBS increased its price objective on MRNA to $45 from $36 while continuing to hold a Neutral stance on the stock. The firm pointed to several upcoming pipeline developments that could influence investor sentiment if the company delivers favorable clinical results across its programs.
More recently, on May 21, Moderna, Inc. disclosed that its investigational mRNA influenza vaccine will undergo evaluation by an FDA advisory committee on June 18 ahead of the agency’s August 5 regulatory decision deadline. The scheduled review marks a significant step in the vaccine’s approval process and reflects renewed emphasis on external scientific assessment during regulatory evaluations.
The advisory panel meeting is expected to examine clinical evidence supporting the vaccine candidate’s safety and effectiveness before the FDA determines whether to authorize the product. The development also drew attention as advisory committee reviews had become less frequent in recent years for certain vaccine applications. Investors and industry observers are closely monitoring the outcome of the meeting, as positive feedback from the panel could strengthen confidence in Moderna’s broader respiratory vaccine pipeline and support future commercial opportunities beyond its COVID-19 franchise.
Moderna, Inc. is a biotechnology company specializing in mRNA-based therapies and vaccines. Founded in 2010 and headquartered in Cambridge, Massachusetts, it develops treatments for infectious diseases, cancer, rare diseases, and autoimmune disorders.
3. AbbVie Inc. (NYSE:ABBV)
Number of Hedge Fund Holders: 87
AbbVie Inc. (NYSE:ABBV) is among the best immunology stocks.
TheFly reported on May 27 that ABBV announced FDA approval of DECNUPAZ (pivekimab sunirine-pvzy) for adults diagnosed with blastic plasmacytoid dendritic cell neoplasm (BPDCN), a rare and fast-progressing blood cancer with limited available therapies. The authorization was supported by findings from the Phase 1/2 CADENZA study, which evaluated the treatment’s safety and clinical activity in BPDCN patients.
Trial results showed strong and lasting responses among newly diagnosed participants, including a 69.7% composite complete response rate and a median response duration of 9.7 months. Patients with relapsed or refractory disease recorded a 15.7% composite complete response rate with a 9.2-month median duration of response. Several patients later proceeded to stem cell transplantation following treatment.
Separately, on May 22, AbbVie Inc. announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use issued a favorable recommendation for Maviret, the company’s oral pangenotypic antiviral therapy for acute hepatitis C. The recommendation covers treatment for adults as well as children aged 3 years and older. ABBV stated that a final decision from the European Commission is anticipated during the third quarter of 2026. If authorized, Maviret would become approved in the European Union for both acute and chronic hepatitis C infections, potentially expanding its treatment use across a broader patient population.
AbbVie Inc. is a global biopharmaceutical company and a leader in immunology. Spun off from Abbott Laboratories in 2013, it develops treatments for immune-mediated diseases across rheumatology, dermatology, and gastroenterology, including rheumatoid arthritis, psoriasis, Crohn’s disease, and ulcerative colitis.
2. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 98
Merck & Co., Inc. is also one of the best immunology stocks to buy.
TheFly reported on May 22 that MRK announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use issued a positive recommendation supporting approval of KEYTRUDA in combination with Padcev for adults with resectable muscle-invasive bladder cancer who are not eligible for cisplatin-based chemotherapy. The CHMP opinion covers the use of KEYTRUDA, including its subcutaneous formulation, in the perioperative setting, with treatment continued after radical cystectomy.
The recommendation will now be reviewed by the European Commission, with a final decision expected in the third quarter of 2026. The decision is supported by Phase 3 KEYNOTE-905 results showing meaningful improvements in event-free survival, overall survival, and pathologic complete response compared with surgery alone.
Concurrently, on May 18, Merck & Co., Inc. reported that its Phase 3 TroFuse-005 study of sacituzumab tirumotecan (sac-TMT), a TROP2-directed antibody-drug conjugate developed with Kelun-Biotech, achieved both of its primary endpoints. The trial demonstrated statistically significant improvements in overall survival and progression-free survival in patients with advanced or recurrent endometrial cancer who had previously received platinum-based chemotherapy and anti–PD-1/PD-L1 therapy.
It also met a key secondary endpoint of objective response rate. These results represent the first global Phase 3 evidence showing superiority over chemotherapy in this setting and will be shared at a future medical meeting. Merck stated the safety profile remained consistent with prior studies, with no new safety concerns identified.
Merck & Co., Inc. is a global biopharmaceutical company with a strong focus on oncology, led by its flagship drug Keytruda. It is also expanding into immunology, developing treatments for immune-mediated inflammatory diseases.
1. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
Eli Lilly and Company (NYSE:LLY) is among the best immunology stocks.
TheFly reported on May 26 that LLY agreed to acquire Vaccine Company, Inc., a clinical-stage biotech focused on in vivo nanoparticle vaccine technology designed to mimic virus-like particle immune responses without the complex manufacturing required for traditional VLP approaches. The company’s pipeline includes multiple preclinical programs targeting viral diseases, with its lead Epstein-Barr Virus candidate advancing toward Phase 1 readiness using a five-antigen design.
The acquisition deal values Vaccine Company at up to $1.55 billion in cash, structured with an upfront payment plus additional milestone-based payouts tied to clinical and commercial progress. The technology is being explored for the prevention of EBV-related conditions, including infectious mononucleosis and potential long-term neurological and oncologic outcomes.
Separately, on May 25, Eli Lilly and Company reported positive Phase 1b Heart-2 study data for VERVE-102, an investigational in vivo base-editing therapy intended to permanently inactivate the PCSK9 gene in the liver to reduce LDL cholesterol after a single infusion. The study enrolled adults with heterozygous familial hypercholesterolemia or premature coronary artery disease.
Interim results from 35 participants showed a single intravenous dose produced dose-dependent declines in circulating PCSK9 protein ranging from 51% to 88%, alongside LDL-C reductions spanning 9% to 62% across dose groups. These lipid-lowering effects were sustained, with durability observed for up to 18 months after treatment, supporting prolonged therapeutic activity following one administration.
Eli Lilly and Company is a global pharmaceutical company focused on developing treatments in cardiometabolic diseases, oncology, immunology, and neuroscience. It is a growing leader in immunology, with a portfolio of biologic and targeted therapies for immune-mediated inflammatory conditions.
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