4 Drug, Biotech Stocks Rising More Than 50% in 2025 With Room to Grow

Industry Overview - The drug and biotech sector experienced a volatile performance in 2025, with a significant recovery in the last months attributed to improved drug pricing policies and strong M&A activity, leading to a 26% rally in the biotech sector over the past six months, outperforming the S&P 500 index [1] - Innovation is expected to drive growth in key areas such as obesity, gene therapy, inflammation, and neuroscience, with the FDA approving 44 novel therapies as of December 22, 2025, and strong M&A activity anticipated to continue into 2026 [2] Company Highlights Mineralys Therapeutics (MLYS) - MLYS's product candidate, lorundrostat, is in development for uncontrolled hypertension, chronic kidney disease, and obstructive sleep apnea, with pivotal studies showing positive results and plans for NDA submission in early 2026 [6][8] - MLYS shares surged 203.4% year-to-date, supported by favorable regulatory updates and strong clinical data [9] - The company has narrowed its loss per share estimates for 2026 from $3.06 to $2.50 [10] Lyell Immunopharma (LYEL) - LYEL focuses on next-generation CAR T-cell therapies, with its lead candidate, ronde-cel, in pivotal studies for large B-cell lymphoma, and a second pivotal study expected to begin in early 2026 [11][14] - LYEL shares increased by 191.6% year-to-date, bolstered by a strong cash position of approximately $320 million as of September 30, 2025 [16] - Loss per share estimates for 2026 have narrowed from $12.68 to $9.70 [17] Insmed (INSM) - INSM markets Arikayce for refractory MAC lung disease, generating $314.5 million in sales in the first nine months of 2025, a 21% increase year-over-year [18] - The FDA approved Brinsupri for non-CF bronchiectasis, with sales of $28.1 million in Q3 2025, although the company faced a setback with the failure of the BiRCh study [19][20] - INSM shares rose 156% year-to-date, with loss per share estimates for 2026 narrowing from $3.65 to $3.58 [22] Nektar Therapeutics (NKTR) - NKTR is developing rezpegaldesleukin for atopic dermatitis and alopecia areata, with positive data from phase IIb studies supporting its advancement into phase III development in 2026 [23][25] - NKTR shares skyrocketed 218.8% year-to-date, with loss per share estimates for 2026 narrowing from $12.82 to $10.81 [27]