Healthcare Stocks That Soared in 2025: A Year of Biotech Breakthroughs and Clinical Triumphs

The biotech sector witnessed extraordinary market performance throughout 2025, with several clinical-stage pharmaceutical companies delivering returns that far exceeded broader market indices. This retrospective examines twelve health-tech firms whose strategic pipelines and regulatory progress drove substantial shareholder value creation over the past year.

Leading the Charge: Highest Performing Biotech Names

Nutex Health Inc. (NUTX): From Losses to Profitability

Perhaps the most dramatic turnaround belongs to Nutex Health, a physician-operated healthcare services enterprise. The company’s financial trajectory tells a compelling story: after posting a $424 million net loss in 2022, it reduced losses to $45 million by 2023, then executed a complete reversal with $52 million in net income for 2024. That momentum accelerated further, generating $59 million in net income during the first nine months of 2025. Revenue growth matched this profitability surge, escalating from $219 million (2022) to $723.6 million (nine months of 2025). Our initial alert on November 25, 2024, at $33.56 was followed by another recommendation at $70 on April 1, 2025. The shares subsequently surged to $193.07 before settling near $182, representing a remarkable multifold return.

Inhibrx Biosciences Inc. (INBX): Steady Climb to All-Time Highs

Inhibrx progressed methodically through 2025 with its pipeline of biologic therapeutics. The company’s lead candidate Ozekibart (INBRX-109) demonstrated statistically significant improvements in progression-free survival for chondrosarcoma patients in a registrational trial. A second candidate, INBRX-106, is being evaluated alongside Keytruda as a potential first-line therapy for advanced head and neck squamous cell carcinoma. Trading at $18.35 when we highlighted INBX on July 8, 2025, the stock climbed steadily throughout the year, reaching an all-time peak of $94.57 in late December before pulling back to approximately $77.

GRAIL Inc. (GRAL): Early Cancer Detection’s Market Moment

GRAIL captured investor enthusiasm around its Galleri test for multi-cancer early detection (MCED). Though not yet FDA-approved, the company expects to file a PMA with the agency during Q1 2026, supported by data from NHS-Galleri and PATHFINDER 2 studies. When we profiled GRAL on September 26, 2025, at $48.50, few anticipated the sharp rally that would follow. Shares rocketed to an all-time high of $115.76 by November 25, 2025, before moderating to around $88.

Clinical Developments Driving Market Performance

Palvella Therapeutics Inc. (PVLA): Rare Disease Focus Pays Off

Palvella, a clinical-stage developer of therapies for rare vascular conditions, positioned QTORIN rapamycin as a “pipeline in a product” with potential across multiple indications including microcystic lymphatic malformations and cutaneous venous malformations. Our March 10, 2025, alert at $25 preceded a dramatic rally to $114.69 by December 22, before the shares settled around $99.88—a substantial multiple on initial entry.

Terns Pharmaceuticals Inc. (TERN): Oncology and Obesity Pipeline

Terns demonstrated encouraging progress with TERN-701 for treatment-resistant chronic myeloid leukemia. November data revealed that 64% of patients achieved major molecular response within 24 weeks, with updated figures showing 75% response rates at doses exceeding 320 mg daily—establishing a clear dose-response relationship. Initially flagged at $5.98 on August 6, 2025, TERN reached $48.26 by December 10 before retreating to $40, still representing an exceptional gain.

Celcuity Inc. (CELC): Breast Cancer NDA Milestone

Celcuity advanced Gedatolisib, its precision oncology candidate, to an FDA NDA submission for hormone receptor-positive, HER2-negative advanced breast cancer in November 2025. The company is also evaluating the drug in combination with darolutamide for metastatic castration-resistant prostate cancer. Trading at $12.60 when we recommended it on December 4, 2024, CELC subsequently touched an all-time high of $112.64 before settling around $99.16.

NANOBIOTIX (NBTX): Physics-Based Cancer Therapy

Nanobiotix pioneered physics-based therapeutic approaches through NBTXR3 (JNJ-1900), licensed to Janssen Pharmaceuticals. The ongoing NANORAY-312 phase III study in elderly patients with locally advanced head and neck squamous cell carcinoma should yield interim data in H1 2027. Additional readouts, including data from a phase 1 trial for anti-PD-1 resistant melanoma patients, are scheduled for 2026. Our September 19, 2025, alert at $12.23 preceded a peak of $30.35 on October 13, before the stock stabilized around $21.

Regulatory Milestones and Pipeline Progress

Cogent Biosciences Inc. (COGT): Multiple NDA Pathway

Cogent’s Bezuclastinib for rare systemic diseases represents a multi-indication opportunity. The company filed its first NDA for non-advanced systemic mastocytosis and maintains plans for additional filings in gastrointestinal stromal tumors and advanced systemic mastocytosis during H1 2026. Our July 2, 2025, recommendation at $7.25 proved prescient, as shares climbed to $43.73 by December 8 and settled near $35.

Cidara Therapeutics Inc. (CDTX): M&A Validation

Cidara’s acquisition by Merck at $221.50 per share (approximately $9.2 billion total transaction value) vindicated early investors. When we profiled CDTX on November 21, 2024, the stock traded at $18.98, offering substantial upside before the deal announcement. Closing is anticipated in Q1 2026.

DBV Technologies S.A. (DBVT): Food Allergy Innovation

DBV’s VIASKIN Peanut patch met its primary endpoint in a pivotal phase 3 study for children aged 4-7 with peanut allergies. The company targets a BLA submission in H1 2026, with market analyst estimates suggesting peak sales potential of $1.5 billion by 2030. We highlighted DBVT at $10.64 on October 2, 2025. The stock subsequently rallied to $26.18 by December 17 before moderating to approximately $19.

Sol-Gel Technologies Ltd. (SLGL): Dermatology Expansion Into Rare Diseases

Sol-Gel operates in dermatology with FDA-approved products TWYNEO (acne) and EPSOLAY (rosacea), while advancing investigational candidates. Notably, SGT-610 is undergoing phase III evaluation for Gorlin syndrome, with top-line results expected in Q4 2026. Additionally, the company is testing SGT-210 in a phase 1b trial for Darier disease—a rare genetic disorder affecting the skin. This expansion into genetic dermatological conditions broadens Sol-Gel’s addressable market. Our May 7, 2025, mention at $7.26 preceded a rise to $52.26 by October 6, with shares now trading around $43.

Zenas BioPharma Inc. (ZBIO): Autoimmune Focus

Zenas developed Obexelimab for immunological disorders, with phase 3 data pending in IgG4-Related Disease and encouraging phase 2 results announced this October for relapsing multiple sclerosis. The MoonStone trial demonstrated a 95% relative reduction in gadolinium-enhancing lesions versus placebo at 12 weeks. We profiled ZBIO on December 17, 2024, at $8.79. The stock reached $44.60 by December 24 before retreating to around $35.

Lessons for Forward-Looking Investors

The 2025 biotech landscape rewarded investors who identified companies with clear regulatory pathways, compelling clinical data, and transformative therapeutic approaches. While past performance provides no guarantee of future results, the opportunity set in emerging healthcare innovation remains substantial for disciplined investors willing to research emerging pipeline opportunities.