Top 10 pharma stocks to watch right now [2025]
Between the launch of GLP-1 drugs, the rapid development of mRNA technology, and increasing demand for immunotherapy treatments, the pharmaceutical industry is currently undergoing significant shifts. While drug development isn’t without risks, the potential rewards can be lucrative.
Explore our 10 leading pharma stocks to watch below, featuring each company’s leading drugs and expansion plans for the upcoming year.
Watch these top 10 pharma stocks in 2025
Company Name | Ticker | Share Price | 1Y Return | Market Cap |
|---|---|---|---|---|
Eli Lilly | US$821.67 | +5.59% | US$778.9B | |
Johnson & Johnson | US$163.13 | +3.27% | US$393.1B | |
AbbVie Inc. | US$202.72 | +12.40% | US$358.6B | |
Novo Nordisk | US$70.16 | -45.21% | US$239.7B | |
AstraZeneca | US$72.84 | +6.71% | US$224.8B | |
Merck & Co. Inc. | US$87.60 | -33.51% | US$221.3B | |
Pfizer Inc. | US$25.01 | -9.97% | US$141.8B | |
GSK plc | US$38.52 | -10.40% | US$79.3B | |
BioNTech | US$95.40 | +2.61% | US$22.9B | |
Ginkgo Bioworks | US$6.59 | -85.02% | US$362.7M |
Data as of 27 March 2025. Source: Stake, Google.
*The list of pharmaceutical stocks mentioned is ranked by market capitalisation. When deciding what companies to feature, we analyse the company's financials, recent news, advancement in their timeline, and whether or not they are actively traded on Stake.
Here are some of the largest pharmaceutical companies from Wall St
1. Eli Lilly ($LLY)
Founded in 1876, Eli Lilly has become one of the world’s most valuable pharmaceutical companies. The company is well-known for its breakthrough drugs in treating diabetes and depression, including Iletin and Prozac.
Today, Eli Lilly is a market leader in the GLP-1 race. In fact, the company’s Mounjaro and Zepbound weight-loss drugs now account for nearly 40% of the firm’s revenue. Eli Lilly’s focus on continued drug development shows no signs of slowing down, with the company announcing plans to more than double its U.S. manufacturing footprint over the next several years.
2. Johnson & Johnson ($JNJ)
Johnson & Johnson is one of the largest healthcare companies in the world, reaching nearly $60 billion in total drug sales in 2024. The company operates a diversified range of services across the pharmaceutical and medical devices markets.
Darzalex, which treats certain types of cancers, is the company’s best-selling drug, responsible for more than $11 billion in global sales.
Following the successful spin-off of the consumer health segment Kenvue in 2022, J&J has renewed its traditional focus on pharmaceuticals.
Over the next four years, the company plans to invest $55 billion in U.S. manufacturing facilities to expand drug production. With that said, litigation could be a headwind for the company, particularly surrounding the company’s exposure to lawsuits over J&J’s talc products.
🆚 Compare JNJ vs ABBV→
3. Abbvie Inc. ($ABBV)
AbbVie was formed in 2013 as a spin-off of the multinational healthcare company Abbott Laboratories. The biopharmaceutical company focuses on developing and commercialising specialised drugs.
For years, AbbVie relied on revenue from its Humira autoimmune drug to drive sales. But in 2023, AbbVie lost its exclusivity over the drug, leading to a sharp decline in sales.
Today, the company’s leading drug is Skyrizi, also used to treat autoimmune diseases. In 2024, Skyrizi drove about $11 billion in sales, followed by Humira at $9 billion. While AbbVie lags competitors in the GLP-1 race, a recent licensing deal with Denmark-based Gubra marks the company’s first significant foray into weight-loss drugs.
✅ Related: ASX Biotechnology stocks to watch
4. Novo Nordisk ($NVO)
Novo Nordisk is one of the most valuable companies in Europe and an early entrant to the GLP-1 market. The company’s Wegovy and Ozempic products have been some of the best-selling weight loss drugs on the market, combining to reach around $40 billion in sales.
The company continues to invest heavily in GLP-1s, with plans to spend $9 billion in 2025 to expand manufacturing capacity.
Novo Nordisk recently acquired the rights to the next-gen GLP-1 UBT251 drug for $2 billion. Given this continued investment, expect to see Novo maintain its market-leading position for the foreseeable future.
5. AstraZeneca ($AZN)
Founded from the merger of a Swedish and British company in 1999, AstraZeneca has quickly become a leading pharma company, particularly in diabetes and cancer treatment.
In 2024, the company’s best-selling product was the lung cancer drug Tagrisso, which was recently approved for expanded use by the FDA.
Although AstraZeneca lags behind competitors in the GLP-1 space, its Farxiga drug remains a competitive diabetes treatment. The company remains focused on a more diversified product stream, with the aim of launching 20 new medicines by the end of the decade.
In late 2024, the company committed to $3.5 billion in new manufacturing and research investments in the U.S.
6. Merck & Co. Inc. ($MRK)
Merck develops and markets a broad range of prescription medicines and over-the-counter drugs, vaccines, and animal health products. Their portfolio is wide-ranging, covering areas including oncology, infectious diseases, respiratory, and immunology.
The company’s flagship drug is Keytruda, a cancer immunotherapy treatment that generated over $29.5 billion in revenue in 2024. In fact, this makes Keytruda the best-selling drug worldwide.
Notably, Merck has pursued an aggressive acquisitions-focused growth strategy. In 2024 alone, the company acquired four companies, including a $1.3 billion deal for Modifi Biosciences.
7. Pfizer Inc. ($PFE)
Pfizer is a research-based pharmaceutical company that develops and produces drugs for a number of medical conditions, including cancer, cardiovascular disease, and inflammatory disorders. Notably, Pfizer was one of the first companies to achieve a successful Covid treatment and vaccine, which provided a significant boost to sales.
In 2024, the company’s leading product was Eliquis, which helps reduce the risk of strokes and blood clots. While sales from Pfizer’s Comirnaty Covid vaccine slowed, it still accounted for more than $5 billion in revenue.
Concerningly, recent reports indicate that the U.S. government could be investigating certain aspects of Pfizer’s vaccine rollout.
🆚 Compare PFE vs JNJ→
8. GSK plc ($GSK)
GSK, historically dubbed GlaxoSmithKline, is a major British pharma company. The firm’s main focus areas include treatments for respiratory diseases, HIV/infectious diseases, oncology, and immunology. The pharmaceutical company spun off its consumer healthcare unit as a separate business called Haleon in 2022.
Recent positive results have been supported by the blockbuster shingles vaccine Shingrix, which generated more than $1 billion in revenue in 2024. Other leading drugs include Arexvy, a treatment for RSV.
Although GSK hasn’t announced major plans for 2025, the company has dozens of drugs in its research pipeline and recently launched a multi-billion dollar share buyback program.
9. BioNTech ($BNTX)
BioNTech is a German biotech company that earned world renown for developing the mRNA technology crucial for Covid vaccine development.
In recent years, the company has focused more on oncology and developing leading cancer treatments.
Early this year, BioNTech completed its acquisition of Biotheus, a research firm developing leading oncology treatments. BioNTech’s efforts to develop a breakthrough cancer treatment have been rumoured to take aim at Keytruda, the best-selling drug in the world.
10. Ginkgo Bioworks ($DNA)
Ginkgo Bioworks is unusual for a pharma company, as it’s not a traditional drug development or manufacturing firm. Instead, Ginkgo uses genetic engineering to produce bacteria with industrial applications.
The firm is working in an emerging industry, with the goal of scaling synthetic biology to a factory-level operation.
Ginkgo’s products have a range of applications, but they've mainly focused on supporting the healthcare sector by providing inputs for diagnostics and vaccine design. Recently, Ginkgo has embraced the AI revolution, launching a cutting-edge AI platform for research and development.
Notably, Ginkgo has partnered with established pharmaceutical companies, including Novo Nordisk and Eli Lilly.
How to invest in pharmaceutical companies?
To invest in pharmaceutical companies from the U.S. markets, you’ll need to use an investment platform with access to Wall St. exchanges. Follow our step-by-step guide below:
1. Find a stock investing platform
To invest in pharma stocks, you’ll first need to find an investing platform that offers access to exchanges like the NYSE and Nasdaq. There are several share investing platforms available, of which Stake is one.
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Get a full U.S. share when you fund Stake Wall St or A$10 trading credit when you fund Stake AUS. Fund both, get both. T&Cs apply.
2. Fund your account
Next, open an account by completing an application with your personal and financial details. You’ll then need to fund your account with a bank transfer, debit card, or even Apple/Google Pay.
3. Search for the stock
Find the company name or ticker symbol. Always conduct your own research to ensure that the investment is suited to your risk tolerance and financial goals.
4. Set a market or limit order and buy the shares
You can buy stock almost instantly at the current price by using a market order during the trading day. Alternatively, enter a limit order to purchase your stock when it reaches a specific price. Consider dollar cost averaging to spread out your risk, which involves buying at consistent intervals.
5. Monitor your investment
Once you own the stock, monitor its performance over time. Check your portfolio regularly to ensure that your investment remains aligned with your financial goals.
List of popular pharmaceutical companies on the ASX
While the U.S. is home to many of the world’s leading pharmaceutical companies, Australia also has its fair share of drug research and development firms. Explore a few pharma companies on the ASX below:
- Neuren Pharmaceuticals Limited ($NEU): Neuren is a leading Australian pharma company, focusing on developing therapies for neurodevelopmental disorders in early childhood. The company recently announced a new treatment for infant brain injuries.
- Clarity Pharmaceuticals Limited ($CU6): Clarity is focused on ‘radiopharmaceutical’ therapy, including next-generation treatments for cancer. The stock has slid this year, but recent regulatory successes could portend a turnaround.
- Botanix Pharmaceuticals Limited ($BOT): Botanix is an American-Australian pharma company focused on advanced dermatology treatments. Some of the company’s latest products treat excessive sweating and other skin conditions.
💡Related: Explore the top Healthcare ETFs to watch→
What are the considerations of investing in pharmaceutical stocks?
Pharmaceutical companies can be risky investments, as success is dependent on lengthy R&D processes and regulatory approvals. During clinical testing periods, firms can face make-or-break situations that shape their future. This is a particular concern for biotech stocks with small market caps, which could struggle to continue to fund R&D without milestone payments.
Researching the products created by pharmaceutical companies can sometimes be challenging for investors without a medical or scientific background, as marketing materials can contain technical terms or industry-specific language. Pharmaceuticals are also affected by government regulations, which can impact their pricing power and entry into specific markets.
With that said, investing in established pharmaceutical companies with proven treatments can be one way to mitigate the risk inherent in this sector.
Pharmaceutical stocks FAQs
Whether a stock is a good investment depends on your risk tolerance and financial situation. A pharmaceutical company's success is reliant on having medications approved for sale. While this type of business can be risky, hinging on one-off decisions by government regulators, the rewards can potentially be worth it for some investors with a higher risk appetite.
Since many products don't make it through the whole pipeline, small-cap pharma stocks can be particularly volatile. Those with a larger market cap are less exposed to single drugs, as they usually have multiple pharmaceutical products and income streams. They often also acquire successful small-cap stocks with successful treatments.
There are several pharma ETF options to gain exposure to pharmaceutical companies:
- The VanEck Pharmaceutical ETF ($PPH) includes 25 companies that generate at least 50% of their revenue from pharmaceutical-related products and services.
- Large pharmaceutical stocks listed in the U.S. are also accessible in the iShares U.S. Pharmaceuticals ETF ($IHE).
- The Invesco Dynamic Pharmaceuticals ETF ($PJP) consists of 30 U.S.-listed companies from the pharmaceutical industry.
- The Direxion Daily S&P Biotech Bull 3X Shares ETF ($LABU) is a leveraged product that aims to return 300% of the biotech companies on the S&P.
- The Direxion Daily S&P Biotech Bear 3X Shares ($LABD) does the inverse.
Disclaimer
This does not constitute financial product advice nor a recommendation to invest in the securities listed. Past performance is not a reliable indicator of future performance. When you invest, your capital is at risk. You should consider your own investment objectives, financial situation, particular needs. The value of your investments can go down as well as up and you may receive back less than your original investment. As always, do your own research and consider seeking appropriate financial advice before investing.
Any advice provided by Stake is of general nature only and does not take into account your specific circumstances. Trading and volume data from the Stake investing platform for reference purposes only, the investment choices of others may not be appropriate for your needs and is not a reliable indicator of performance.
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