In this article, we will examine the Top 8 Long-Term Biotechnology Stocks to Buy.
Momentum in biotechnology stocks is accelerating after years of underperformance. The NASDAQ biotechnology stocks have returned over 34% in the past six months, while the S&P 500 Biotechnology Select Industry index has rallied 49%. The outperformance dwarfs the S&P 500’s 26% gains over the same period, affirming renewed risk-taking in the sector.
Optimism that President Donald Trump will ease regulations in the sector and spur momentum in the capital markets has helped fuel the rally. Similarly, positive clinical trial data, new regulatory approvals, and drug launches have contributed to the upward trajectory.
Analysts at Barclays attribute the renewed focus on biotech to a surge in mergers and acquisitions in the sector, as large-cap companies look to secure their pipeline assets. Likewise, scientific advancements are increasingly opening new paradigms in the treatment of a range of diseases, further strengthening companies’ prospects.
“Opportunities are knocking as we look to next waves of innovation in biotech,” analysts led by Etzer Darout noted, arguing that its new coverage list offers exposure to this backdrop.
Amid significant year-to-date gains, the biotechnology sector remains about 40% below its pandemic peak. Consequently, it is one of the few areas of the market reasonably priced at a time when overall valuations have gotten out of hand. In contrast, the biotechnology sector is trading below its historical average, underscoring significant upside potential.
While valuations around biotechs remain subdued, the sector has always required high risk tolerance. That’s because companies that drive medical innovation and develop therapies that can transform the healthcare sector offer long-term growth potential.
The prospect of further US interest rate cuts is giving believers optimism about the biotechnology sector’s outperformance.
“With the potential for interest rates to be cut more, you’re going to see a loosening up, especially with the biotech sector sentiment getting slightly better,” said Hartaj Singh, founding partner of Tecumseh Partners.
With that in mind, let’s take a look at some of the top long-term biotechnology stocks to buy.
Our Methodology
To compile our list of top long-term biotechnology stocks to buy, we used the Finviz screener. We screened biotechnology stocks with earnings growth of more than 20% over the past 5 years and positive expectations of earnings growth over the next 5 years. We also focused on stocks with an upside potential of more than 20% as of October 28 and that were popular among elite hedge funds as of Q2 2025. Finally, we ranked the stocks in ascending order based on the number of hedge funds that hold stakes in them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Top Long-Term Biotechnology Stocks to Buy
8. Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP)
EPS Growth Past 5Y: 73.03%%
EPS Growth Next 5Y: 88.07%
Number of Hedge Fund Holdings: 2
Stock Upside Potential: 252.82%
Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP) is one of the top long-term biotechnology stocks to buy. On October 17, Tonix Pharmaceuticals (NASDAQ:TNXP) presented encouraging preclinical data for its investigational mpox and smallpox vaccine candidate, TNX-801, at the World Vaccine Congress Europe 2025.
The live, attenuated horsepox-based vaccine elicited strong immune responses, provided long-term protection, and demonstrated favorable safety across multiple animal models. A single dose provided durable immunity for at least 14 months and was well-tolerated across various delivery methods. Despite promising results, Tonix remains unprofitable, and analysts do not expect profitability this year.
TNX-801 is designed to be minimally replicative and may offer advantages over existing vaccines. The company has also engaged the FDA and partnered with the Kenya Medical Research Institute to pursue a Phase I clinical trial. It is also exploring microneedle patch technology to simplify future vaccine administration.
Tonix Pharmaceuticals Holding Corp (NASDAQ:TNXP) is a biopharmaceutical company that develops and commercializes therapies and vaccines for various diseases. Its work focuses on four main areas: central nervous system disorders, immunology, infectious diseases, and rare diseases. The company also markets existing products, such as Zembrace SymTouch and Tosymra, for the treatment of acute migraine headaches.
7. Assembly Biosciences, Inc. (NASDAQ:ASMB)
EPS Growth Past 5Y: 31.58%
EPS Growth Next 5Y: 52.43%
Number of Hedge Fund Holdings: 4
Stock Upside Potential: 33.38%
Assembly Biosciences, Inc. (NASDAQ:ASMB) is one of the top long-term biotechnology stocks to buy. On October 14, H.C. Wainwright reaffirmed its Buy rating and $50 price target on Assembly Biosciences (NASDAQ:ASMB) following the company’s presentation of interim data for ABI-5366, a long-acting oral treatment for recurrent genital herpes.
Presented data showed strong antiviral activity, favorable tolerability, and a dosing profile suitable for weekly or monthly administration. The firm views these results as a key validation of Assembly’s helicase-primase inhibitor platform and believes they reduce the risk of advancing ABI-5366 into Phase 2 trials. The company plans to initiate Phase 2 clinical studies by mid-2026, signaling continued progress in its antiviral pipeline.
Assembly Biosciences, Inc. (NASDAQ:ASMB) is a biotechnology company that develops and commercializes small-molecule therapies for serious viral diseases, with a particular focus on chronic hepatitis B virus (HBV) and herpesviruses.
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