In this article, we will look at the 9 Most Profitable Biotech Stocks to Buy.
On October 6, StemPoint Capital CIO Michelle Ross appeared on CNBC’s ‘Closing Bell’ to talk about the biotech space. She stated that the sector has faced a number of issues in the past few years, including headwinds related to tariffs, MFN drug pricing, a lack of pharma M&A, and a lack of biotech being acquired. Such factors made it appear as if there were a number of reasons not to invest in the sector as opposed to investing in it.
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However, Ross stated that things have marginally started to change in the last few months. It is more about the confluence of effects coming together instead of one single prominent effect, including some “really great-to-see” M&A happening in companies that are pre-commercial.
That side of the ledger is, therefore, exhibiting a lot of positive movement as well, and Ross expects these trends to continue in a meaningful way.
With these trends in view, let’s look at the most profitable biotech stocks to buy.
A biotechnologist in a lab suit studying a syringe with a mesenchymal lineage cells inside.
Our Methodology
We used stock screeners to make a list of profitable biotech stocks (with a TTM net income over $500 million) and selected the top 9 with the highest number of hedge fund holders as of Q2 2025. We sourced 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 recorded on October 24.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
9 Most Profitable Biotech Stocks to Buy
9. Genmab A/S (NASDAQ:GMAB)
TTM Net Income: $1.37 billion
Number of Hedge Fund Holders: 19
Genmab A/S (NASDAQ:GMAB) is one of the most profitable biotech stocks to buy. H.C. Wainwright analyst Ram Selvaraju maintained a Buy rating on Genmab A/S (NASDAQ:GMAB) on October 21 with a $40 price target.
The analyst cited the promising clinical developments in the company’s portfolio, stating that the recent presentation at the ESMO meeting showed the efficacy of rinatabart sesutecan (Rina-S) for the treatment of endometrial cancer. It demonstrated notable response rates in patients, irrespective of OFRα expression levels.
According to the analyst, these results are especially encouraging when compared to present treatments that show lower overall response rates, including the combination of ELAHERE and Keytruda.
Genmab A/S (NASDAQ:GMAB) is an international biotechnology company that develops human antibody therapeutics for the treatment of cancer and other diseases. Its product pipeline includes DARZALEX to treat certain indications of multiple myeloma, TEPEZZA for the treatment of thyroid eye disease, and Arzerra to treat certain indications of chronic lymphocytic leukemia.
8. Royalty Pharma Plc (NASDAQ:RPRX)
TTM Net Income: $1.02 billion
Number of Hedge Fund Holders: 30
Royalty Pharma Plc (NASDAQ:RPRX) is one of the most profitable biotech stocks to buy. On October 10, Morgan Stanley analyst Terence Flynn slashed the price target on Royalty Pharma Plc (NASDAQ:RPRX) to $54 from $55 while keeping an overweight rating on the shares.
The rating update came ahead of Q3 earnings, with the firm telling investors in a preview for the biopharma group that it adjusted models for IQVIA trends along with intra-quarter updates.
The same day, Citi analyst Geoff Meacham also maintained a Buy rating on Royalty Pharma Plc (NASDAQ:RPRX) and set a $43 price target.
Goldman Sachs analyst Asad Haider is another analyst bullish on the stock, as he assigned Royalty Pharma Plc (NASDAQ:RPRX) a Buy rating on October 2.
Haider supported the optimistic rating with the company’s growth potential and strategic positioning, stating that Royalty Pharma Plc (NASDAQ:RPRX) offers investors a unique opportunity to attain exposure to a diversified portfolio of biopharma royalty streams. This helps mitigate the typical risks and volatility linked to biotech investments.
He also said that Royalty Pharma Plc (NASDAQ:RPRX) is experiencing the start of a notable expansion phase anticipated to capitalize on the rising market for royalty funding. The analyst added that the innovation trends in China are further driving growth prospects.
Royalty Pharma Plc (NASDAQ:RPRX) is a funder of innovation in the biopharmaceutical industry and a buyer of biopharmaceutical royalties. It collaborates with innovators from research hospitals, non-profits, and academic institutions through small and mid-cap biotech companies to global pharma companies. The company funds innovation in the industry both directly, by partnering with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly, by acquiring existing royalties from the original innovators. Royalty Pharma Plc’s (NASDAQ:RPRX) portfolio includes royalties in over 35 commercial products, including Johnson & Johnson’s Tremfya, AbbVie and Johnson & Johnson’s Imbruvica, Novartis’ Promacta, Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and others.
7. PTC Therapeutics, Inc. (NASDAQ:PTCT)
TTM Net Income: $629.17 million
Number of Hedge Fund Holders: 34
PTC Therapeutics, Inc. (NASDAQ:PTCT) is one of the most profitable biotech stocks to buy. On October 20, Bank of America Securities analyst Tazeen Ahmad maintained a Buy rating on PTC Therapeutics, Inc. (NASDAQ:PTCT), lifting the price target on the stock to $87 from $76.
The analyst cited the solid initial demand for Sephience, which is the company’s newly approved treatment. A notable interest can be seen in the treatment according to a survey of geneticists and neurologists treating PKU patients, with several of them already prescribing it and anticipating a rise in prescriptions in the near future.
Ahmad stated that this early uptake is especially notable among patients who did not respond well to existing treatments such as Kuvan. He also cited the promising early trends in payor coverage, with a high percentage of initial prescriptions being covered.
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company that discovers, develops, and commercializes clinically differentiated medicines providing benefits to patients living with rare disorders.
6. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
TTM Net Income: $557.28 million
Number of Hedge Fund Holders: 40
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is one of the most profitable biotech stocks to buy. H.C. Wainwright analyst Mitchell Kapoor maintained a Buy rating on Halozyme Therapeutics, Inc. (NASDAQ:HALO) on October 21, keeping the associated price target the same at $90.
The analyst supported the optimistic rating with the company’s growth potential and the stability of its financial prospects, citing the recent success of the MajesTEC-3 trial that showed considerable improvements in progression-free survival (PFS) and overall survival (OS) compared to existing treatments.
The MajesTEC-3 trial pairs Johnson & Johnson’s DARZALEX Faspro with TECVAYLI. According to the analyst, the trial’s outcome boosts Halozyme Therapeutics, Inc.’s (NASDAQ:HALO) royalty base and bolsters evidence for DARZALEX-based regimens, as DARZALEX Faspro is powered by the company’s ENHANZE technology.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biopharmaceutical technology platform company that develops, manufactures, and commercializes drug-device combination products through advanced auto-injector technology. They offer commercial or functional benefits, including increased patient comfort and adherence, and enhanced tolerability and convenience.
5. Incyte Corporation (NASDAQ:INCY)
TTM Net Income: $870.87 million
Number of Hedge Fund Holders: 42
Incyte Corporation (NASDAQ:INCY) is one of the most profitable biotech stocks to buy. Bank of America Securities analyst Tazeen Ahmad maintained a Buy rating on Incyte Corporation (NASDAQ:INCY) on October 22, setting a price target of $104. However, J.P. Morgan analyst Jessica Fye reiterated a Hold rating on Incyte Corporation (NASDAQ:INCY) on October 20.
Fye associated the rating with the company’s market position and current clinical developments, stating that while the early data for Incyte Corporation’s (NASDAQ:INCY) KRAS G12D inhibitor in pancreatic cancer is promising, it is still immature.
According to the analyst, elaborate results anticipated in H1 2026 would provide critical insights into its competitive edge. The key focus for its development is the safety profile, which seems acceptable to combine with chemotherapy. However, Fye reasoned that the competition in second-line pancreatic cancer is considered too advanced for Incyte Corporation (NASDAQ:INCY) to set out on a pursuit of monotherapy at the time.
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company that discovers, develops, and commercializes proprietary therapeutics, focusing on oncology, hematology, inflammation, and autoimmunity therapeutic areas.
4. Exelixis, Inc. (NASDAQ:EXEL)
TTM Net Income: $602.3 million
Number of Hedge Fund Holders: 43
Exelixis, Inc. (NASDAQ:EXEL) is one of the most profitable biotech stocks to buy. On October 21, Exelixis, Inc. (NASDAQ:EXEL) got upgraded to Outperform from Market Perform by Leerink Partners. The firm also raised its price target on the stock to $48 from $38.
The rating update came after the ESMO presentation of the Phase 3 STELLAR-303 trial that evaluated zanzalintinib plus atezolizumab versus regorafenib in 3L non MSI-high metastatic colorectal cancer.
The firm told investors that while Exelixis, Inc. (NASDAQ:EXEL) stock was down 12% and pressured on the data, it believes that the trial established several significant levers crucial to its longer-term investment thesis.
It added that STELLAR-303 established the approvability of zanzalintinib in this setting, paving the way for the next generation TKI to offset cabo revenues after patent expiry in 2028.
Exelixis, Inc. (NASDAQ:EXEL) discovers, develops, and commercializes new medicines for difficult-to-treat cancers. Its product portfolio includes cabometyx, cometriq, and cotellic.
3. Argenx SE (NASDAQ:ARGX)
TTM Net Income: $1.28 billion
Number of Hedge Fund Holders: 53
Argenx SE (NASDAQ:ARGX) is one of the most profitable biotech stocks to buy. Citi analyst Samantha Semenkow maintained a Buy rating on Argenx SE (NASDAQ:ARGX) on October 23 and set a price target of $1,041. Argenx SE (NASDAQ:ARGX) also received a rating update from Bank of America Securities analyst Tazeen Ahmad, who reiterated a Buy rating on the stock and lifted the price target to $942 from $887.
Ahmad based the positive rating on the company’s strong performance and the growth potential of its Vyvgart medication. The analyst stated that Argenx SE (NASDAQ:ARGX) reported impressive Q2 revenues for Vyvgart, exceeding expectations with a 20% quarter-over-quarter growth.
The Q3 revenue is expected to surpass $1 billion, supported by the drug’s expansion into new geographical regions and the approval of a prefilled syringe, which is anticipated to boost its usage and accessibility.
Argenx SE (NASDAQ:ARGX) is a biotech company that develops treatments for severe autoimmune diseases. The company operates through four segments: the United States, Japan, EMEA, and China.
2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
TTM Net Income: $3.64 billion
Number of Hedge Fund Holders: 53
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is one of the most profitable biotech stocks to buy. H.C. Wainwright analyst Andrew Fein reiterated a Buy rating on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) on October 21, setting a price target of $478.
The analyst based the optimistic rating on the positive potential of the company’s kidney franchise, stating that its innovative approach with povetacicept employing a dual BAFF/APRIL blockade is considered to offer lasting and more profound disease control in comparison to single-pathway treatments.
Early data supports this by showing considerable proteinuria reduction and stabilization of eGFR. According to Fein, this points towards a multi-billion-dollar opportunity and paves the way for it to become a first-in-class treatment.
He also cited Vertex Pharmaceuticals Incorporated’s (NASDAQ:VRTX) strategic expansion into primary membranous nephropathy (PMN), as the condition does not have any approved therapies, and this positions povetacicept as a potential first-in-class option.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a global biotechnology company that develops medicines for rare serious diseases. Its four approved medicines treat cystic fibrosis (CF), and one approved therapy treats severe sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). The company’s product pipeline includes clinical-stage programs for various disorders, including TDT, SCD, CF, acute and neuropathic pain, APOL1-mediated kidney disease, type 1 diabetes, myotonic dystrophy type 1, and alpha-1 antitrypsin deficiency.
1. BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)
TTM Net Income: $657.24 million
Number of Hedge Fund Holders: 58
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) is one of the most profitable biotech stocks to buy. Wells Fargo maintained a Buy rating on BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) on October 21 and set a price target of $90. Similarly,
Morgan Stanley analyst Sean Laaman also maintained a bullish stance on the stock on October 19, assigning it a Buy rating and a $104 price target.
Laaman stated that BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) has considerable growth potential and a strong market position, factors that support the optimistic rating. He added that Voxzogo’s international expansion is a key performance driver for the company, as it has resulted in considerable revenue growth, with continued expansion into new countries expected.
The analyst further stated that BioMarin Pharmaceutical Inc.’s (NASDAQ:BMRN) has a competitive market position because of its strategic focus on the establishment of a solid patient base with low switch rates, particularly in younger age cohorts. In addition, the company’s strong pipeline of promising treatments represents catalysts for future growth, including BMN 333 and BMN 351.
BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) develops and commercializes therapies for serious and life-threatening medical conditions and rare diseases. The company’s product pipeline includes Valoctocogene roxaparvovec, Vosoritide, and BMN 307.
While we acknowledge the potential of BMRN 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 BMRN and that has 100x upside potential, check out our report about this cheapest AI stock.
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