Introduction to Pharmaceutical Stocks
Today’s pharmaceutical stocks are facing numerous challenges, including government-imposed drug price caps, waning demand for COVID-19 vaccines, and global stock market upheaval. However, the industry’s major underlying drivers, such as higher rates of cancer and chronic disease, are still at play and not expected to dissipate. The US remains the dominant player in the pharma market, both in terms of drug demand and development. In 2024, the US Food and Drug Administration (FDA) approved 50 novel medicines, compared to 55 approvals in 2023.
Top Performing Small-Cap Pharma Stocks
While big pharma companies often steal the show, some small- and mid-cap NASDAQ pharma stocks have also made significant gains. The following are the top five small-cap pharma stocks on the NASDAQ by year-to-date share price performance, with data compiled on April 7, 2025.
1. DBV Technologies (NASDAQ:DBVT)
DBV Technologies is a clinical-stage biopharma developing treatments for immunologic conditions, such as food allergies, with unmet medical need. The company’s proprietary epicutaneous immunotherapy technology platform, Viaskin, is being used to develop non-invasive transdermal treatments for food allergies. DBV’s stock experienced a significant boost in early January after sharing positive three-year results from its open-label extension Phase 3 trial of the Viaskin peanut patch in toddlers. The company’s share price hit a year-to-date high of $7.86 on April 3.
2. Journey Medical (NASDAQ:DERM)
Journey Medical is a commercial-stage pharma company with a growing portfolio of FDA-approved prescription pharmaceutical products for the treatment of dermatological conditions. The company’s growth model focuses on acquisitions, out-licensing, and in-licensing opportunities. Journey Medical’s stock saw significant gains in early February in anticipation of the commercial launch of Emrosi, a prescription drug for the treatment of rosacea in adults. The product officially hit the US market on March 24, and shares in Journey Medical reached a year-to-date high of $7.19 on April 4.
3. Cumberland Pharmaceuticals (NASDAQ:CPIX)
Cumberland Pharmaceuticals is a Tennessee-based biopharma that develops, acquires, and commercializes products for hospital acute care, gastroenterology, and oncology markets. The company’s clinical pipeline includes Dyscorban, an oral capsule in Phase 2 trials for the treatment of cardiomyopathy associated with Duchenne muscular dystrophy (DMD). Shares in Cumberland soared by 150% to $5.34 on February 6, following the company’s release of positive top-line results from its Phase 2 FIGHT DMD trial.
4. Nuvectis Pharma (NASDAQ:NVCT)
Nuvectis Pharma is developing precision medicines targeting unmet needs in oncology. The company has two clinical-stage drug candidates in its pipeline: NXP800 and NXP900. NXP800 is an oral small molecule GCN2 kinase activator currently in a Phase 1b clinical trial for ovarian cancer. Nuvectis closed on a public offering of $15.5 million on February 7, allowing it to fund the advancement of its development programs through 2027. Shares in Nuvectis Pharma reached a year-to-date high of $10.46 on March 28.
5. OptiNose (NASDAQ:OPTN)
OptiNose specializes in the field of ear, nose, and throat (ENT) medicine, targeting therapeutic areas such as allergies, chronic rhinosinusitis, nasal polyps, and chronic sinusitis. The company’s products include the FDA-approved Xhance (fluticasone propionate) and Onzetra Xsail (sumatriptan nasal powder). Optinose stock shot up to its year-to-date high of $9.15 per share on March 20, following news of a potential $330 million definitive merger agreement with Paratek Pharmaceuticals.
Conclusion
The pharmaceutical industry is facing numerous challenges, but the demand for innovative treatments and therapies continues to drive growth and investment in the sector. Small-cap pharma stocks, such as DBV Technologies, Journey Medical, Cumberland Pharmaceuticals, Nuvectis Pharma, and OptiNose, have made significant gains in recent months, driven by positive clinical trial results, commercial launches, and strategic partnerships. As the industry continues to evolve, it is likely that we will see further innovation and investment in the pharmaceutical sector, particularly in areas with unmet medical needs.
