Top 5 Small-cap Pharma Stocks to Watch in 2025: ABVC BioPharma Leads the Pack

US pharmaceutical stocks face challenges, but underlying drivers like cancer and chronic disease persist. Big pharma dominates, but small-cap NASDAQ stocks like ABVC BioPharma, with a 405.95% year-to-date gain, are making gains. ABVC BioPharma is advancing six drugs and one medical device, with total revenues of $509,589 in 2024, a 234% year-over-year increase.

ABVC BioPharma (NASDAQ: ABVC), a clinical-stage biotechnology company focused on botanical drug development, has reported significant financial improvements in its second quarter of 2025. The company's total assets doubled to $16.2 million, up 103% from the prior year, driven by stronger affiliate holdings and new asset acquisitions [1]. This growth is a testament to the company's strategic consolidation efforts and improved financial health.

Despite the lack of reported revenue for the quarter, ABVC BioPharma disclosed that it collected $350,000 in licensing revenue in July 2025, which will be recognized in the third quarter of 2025 [1]. This licensing revenue aligns with the company's goal to monetize its pipeline and underscores its ongoing efforts to build a sustainable revenue stream.

The company's shareholders' equity also saw a notable increase, rising to $9.5 million from $8.0 million in Q2 2024, reflecting an 18.75% year-over-year growth [1]. This growth is indicative of the company's disciplined strategic consolidation and improved financial health.

ABVC BioPharma's financial performance stands out against the backdrop of broader market challenges. While the company reported a 9.2% revenue decline to $1,966 in Q4 2024, it achieved a 118.4% net income surge to $128,943, reversing a $700k loss [2]. This significant turnaround highlights the company's ability to navigate financial challenges and achieve profitability.

Looking ahead, ABVC BioPharma remains focused on its clinical pipeline and partnerships. The company's pipeline includes six drugs and one medical device under development, with ongoing collaborations with prestigious research institutions [1]. While the company did not provide forward guidance, it indicated its readiness to advance multiple drug candidates into phase III clinical trials within the next five years [2].

Despite the company's strong financial performance, it faces challenges in the broader pharmaceutical market. The sector continues to be dominated by large-cap companies, but small-cap NASDAQ stocks like ABVC BioPharma are making gains. The company's year-to-date gain of 405.95% underscores its potential as an investment opportunity [3].

References:
[1] https://www.aol.com/finance/abvc-biopharma-doubles-assets-q2-111240375.html
[2] https://www.ainvest.com/news/abvc-biopharma-2024-q4-earnings-strong-turnaround-net-income-surges-118-4-2508/
[3] https://finance.yahoo.com/news/abvc-biopharma-inc-reports-103-113000715.html