Best mid-cap healthcare stocks to invest in 2025

The healthcare sector continues to present robust investment opportunities, particularly in the mid-cap space, where innovation meets scalability. These companies are at the forefront of providing cutting-edge medical solutions, expanding access to care, and driving significant growth in niche markets.

Telix Pharmaceuticals leads the way in radiopharmaceutical development, specializing in targeted radiation therapies for cancer diagnosis and treatment. Its innovative approach to precision medicine positions it strongly in the growing theranostics market. Krystal Biotech focuses on gene therapy treatments for rare skin diseases, leveraging its proprietary HSV-1-based delivery platform to create transformative treatments. Medpace operates as a leading clinical contract research organization, providing comprehensive clinical trial management services that enable pharmaceutical and biotech companies to navigate complex development processes.

These mid-cap healthcare firms represent a mix of technological advancement, service excellence, and market responsiveness, making them compelling investment options for 2025. Dive into our detailed analysis to see why they could thrive in your portfolio.

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Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Telix Pharmaceuticals (AX:TLX)

    Telix Pharmaceuticals specializes in the development of radiopharmaceuticals, which are drugs that use radioactive isotopes to diagnose and treat serious diseases, primarily in oncology. Founded in 2015 and headquartered in Melbourne, Australia, the company has expanded its global presence with operations in North America, Europe, and the Asia-Pacific region, positioning itself as a leader in precision medicine. Since its founding, Telix has demonstrated strong growth in the theranostics market, combining diagnostic imaging with targeted radiation therapy.

    Telix Pharmaceuticals focuses on developing targeted radiation therapies for cancers such as prostate, kidney, and brain tumors, using molecularly targeted radiation to detect and destroy cancer cells. The company's flagship product, Illuccix, is an advanced imaging agent designed to improve the detection of prostate cancer, which has been approved in multiple countries. In addition to its commercial products, Telix has a strong pipeline of investigational therapies, aiming to revolutionize cancer treatment by combining innovative imaging and therapeutic solutions.

    Telix Pharmaceuticals financial statements

    Analysts recommendation: 1.6

    Financial Health

    • Return on assets (ROA): 5.4%
    • Return on equity (ROE): 14.52%
    • Return on investment (ROI): 4.71%

    Profitability

    • Gross margin: 65.18%
    • Operating margin: 9.43%
    • Net profit margin: 6.37%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 0.1
    • EPS estimate (next quarter): N/A
    • EPS growth (this year): 248.32%
    • EPS growth (next year): 69.48%
    • EPS growth (next 5 years): 101.21%
    • EPS growth (quarter-over-quarter): N/A
    • Sales growth (past 5 years): 441.82%
    • Sales growth (quarter-over-quarter): N/A

    💡 Why invest in Telix Pharmaceuticals?

    Like a precision-guided missile targeting cancer cells, Telix operates at the cutting edge of theranostic medicine where diagnosis meets treatment:

    • Theranostic Leadership: Telix pioneers the rapidly growing theranostics market, combining diagnostic imaging with targeted radiation therapy to create personalized cancer treatments that offer competitive advantages.
    • Commercial Success: The company's flagship product Illuccix has achieved regulatory approval in multiple countries for prostate cancer imaging, generating revenue streams and validating technology platform viability.
    • Pipeline Diversification: Telix develops radiopharmaceutical solutions for various cancer types including prostate, kidney, and brain tumors, reducing dependency on single products and expanding addressable market opportunities.
    • Global Operations: With established operations across Australia, North America, Europe, and Asia-Pacific regions, Telix accesses diverse patient populations and regulatory pathways for accelerated market penetration.

    🐌 Key considerations before investing in Telix Pharmaceuticals

    Even the most targeted therapies face challenges in navigating complex regulatory landscapes and competitive pressures:

    • Development Risks: Most of Telix's pipeline candidates remain in clinical development stages, creating uncertainty around regulatory approval timelines, efficacy outcomes, and commercialization success rates.
    • Market Competition: The theranostics sector attracts established pharmaceutical giants and innovative biotechnology companies, intensifying competition for market share, talent acquisition, and partnership opportunities.
    • Reimbursement Hurdles: Novel radiopharmaceutical treatments face complex reimbursement negotiations with healthcare systems and insurance providers, potentially limiting patient access and revenue generation capabilities.
    • Regulatory Complexity: Radiopharmaceuticals require specialized manufacturing facilities and stringent regulatory oversight, creating operational challenges and increasing compliance costs across multiple jurisdictions.

    Final thoughts on Telix Pharmaceuticals

    Telix Pharmaceuticals' pioneering position in theranostic medicine and commercial success with Illuccix demonstrate the company's ability to translate innovative science into viable cancer treatments. The diversified pipeline and global operational footprint provide multiple pathways for growth in the expanding precision medicine market. However, investors must consider development risks and regulatory complexities inherent in radiopharmaceutical innovation. Like a skilled oncologist combining multiple treatment modalities, Telix's integrated approach to cancer diagnosis and therapy positions it uniquely to benefit from the growing demand for personalized cancer care.

  • Medpace (NYSE:MEDP)

    Medpace Holdings is a full-service clinical contract research organization (CRO) specializing in the design and execution of complex clinical trials for the pharmaceutical, biotechnology, and medical device industries. Founded in 1992 and headquartered in Cincinnati, Ohio, the company has established itself as a trusted partner for companies seeking to navigate the regulatory and clinical development landscape. The company's integrated approach provides end-to-end clinical development solutions, helping clients bring innovative therapies to market efficiently.

    With a strong focus on operational excellence, Medpace offers expertise in therapeutic areas such as oncology, cardiology, neurology, and rare diseases, ensuring high-quality clinical trial management. The company differentiates itself through its full-service model, which includes in-house laboratory services, regulatory consulting, and data management, allowing for seamless coordination and improved study outcomes. By leveraging scientific expertise, advanced technology, and a dedicated team of professionals, Medpace continues to drive innovation in clinical research and support the development of life-saving treatments.

    Medpace financial statements

    Analysts recommendation: 2.64

    Financial Health

    • Return on assets (ROA): 22.55%
    • Return on equity (ROE): 65.82%
    • Return on investment (ROI): 57.81%

    Profitability

    • Gross margin: 30.16%
    • Operating margin: 21.16%
    • Net profit margin: 19.31%

    Growth

    • EPS (past 5 years): 36.5%
    • EPS (current): 13.1
    • EPS estimate (next quarter): 2.99
    • EPS growth (this year): 1.13%
    • EPS growth (next year): 3.2%
    • EPS growth (next 5 years): 5.23%
    • EPS growth (quarter-over-quarter): 14.63%
    • Sales growth (past 5 years): 19.62%
    • Sales growth (quarter-over-quarter): 9.3%

    💡 Why invest in Medpace?

    Like a skilled clinical trial conductor orchestrating complex medical research symphonies, Medpace creates value through precision and expertise:

    • CRO Leadership: Medpace operates as a leading full-service contract research organization, providing comprehensive clinical trial management services that enable pharmaceutical and biotech companies to navigate development.
    • Integrated Services: The company's full-service model includes in-house laboratory services, regulatory consulting, and data management capabilities, creating operational efficiencies and competitive advantages.
    • Therapeutic Expertise: Medpace specializes in complex therapeutic areas including oncology, cardiology, neurology, and rare diseases, providing deep clinical expertise that attracts high-value clients and partners.
    • Financial Performance: The company demonstrates exceptional financial metrics with high ROE, strong profit margins, and consistent revenue growth, reflecting effective operational execution and market positioning in the CRO industry.

    🐌 Key considerations before investing in Medpace

    Even the most expertly managed clinical trials face challenges that can impact timelines, costs, and overall success rates:

    • Industry Dependency: Medpace's performance depends heavily on pharmaceutical and biotechnology industry R&D spending, making it vulnerable to budget cuts, regulatory changes, and economic downturns affecting clients.
    • Competitive Pressure: The CRO industry faces intense competition from large established players and specialized service providers, pressuring margins and requiring continuous investment in capabilities and technology platforms.
    • Trial Execution Risks: Clinical trials involve inherent risks including patient recruitment challenges, regulatory delays, and study protocol modifications that can impact project timelines, costs, and profitability.
    • Regulatory Complexity: The company operates in heavily regulated environments requiring compliance with FDA, EMA, and international regulatory standards, creating operational complexity and potential compliance costs.

    Final thoughts on Medpace

    Medpace's leadership position in clinical research services and integrated full-service model create compelling opportunities in the essential drug development market. The company's therapeutic expertise and strong financial performance demonstrate effective execution in serving pharmaceutical and biotech clients. However, investors must consider industry dependency and competitive pressures that characterize the CRO sector. Like a master clinical researcher designing breakthrough studies, Medpace's specialized expertise becomes increasingly valuable as drug development grows more complex and regulatory requirements become more demanding across therapeutic areas.

  • Krystal Biotech (NYSE:KRYS)

    Krystal Biotech is a biotechnology company focused on developing gene therapy treatments for rare and serious skin diseases. Founded in 2016 and headquartered in Pittsburgh, Pennsylvania, the company specializes in leveraging its proprietary HSV-1-based gene delivery platform to create transformative treatments. Krystal Biotech is dedicated to advancing genetic medicine, with a strong emphasis on addressing unmet medical needs in dermatology and beyond.

    The company's lead product, Vyjuvek, is a breakthrough gene therapy designed to treat dystrophic epidermolysis bullosa (DEB), a rare and debilitating skin disorder. Krystal Biotech's pipeline includes other gene therapies targeting dermatological and respiratory conditions, demonstrating its commitment to expanding the applications of genetic medicine. By integrating cutting-edge science with a patient-centric approach, Krystal Biotech continues to push the boundaries of innovation in gene therapy.

    Krystal Biotech financial statements

    Analysts recommendation: 1.18

    Financial Health

    • Return on assets (ROA): 12.86%
    • Return on equity (ROE): 13.9%
    • Return on investment (ROI): 12.48%

    Profitability

    • Gross margin: 91.19%
    • Operating margin: 40.05%
    • Net profit margin: 37.18%

    Growth

    • EPS (past 5 years): N/A
    • EPS (current): 4.15
    • EPS estimate (next quarter): 1.3
    • EPS growth (this year): 99.88%
    • EPS growth (next year): 45.41%
    • EPS growth (next 5 years): 61.67%
    • EPS growth (quarter-over-quarter): 3661.64%
    • Sales growth (past 5 years): N/A
    • Sales growth (quarter-over-quarter): 94.88%

    💡 Why invest in Krystal Biotech?

    Like a genetic locksmith crafting precise keys to unlock cellular healing, Krystal Biotech pioneers transformative gene therapies for devastating skin conditions:

    • Commercial Success: Krystal Biotech achieved FDA approval for Vyjuvek, the first gene therapy for dystrophic epidermolysis bullosa, generating significant revenue streams and validating their HSV-1 delivery platform technology.
    • Orphan Disease Focus: The company targets rare skin diseases with substantial unmet medical needs, securing orphan drug designations that provide market exclusivity, premium pricing, and reduced regulatory barriers.
    • Platform Technology: Krystal's proprietary HSV-1-based gene delivery system enables multiple therapeutic applications across dermatological and respiratory conditions, creating pipeline expansion opportunities.
    • Strong Financials: The company demonstrates impressive profitability metrics with high gross margins and strong cash generation, providing financial stability for continued research and development investments.

    🐌 Key considerations before investing in Krystal Biotech

    Even the most promising genetic medicines face scientific and commercial challenges that can impact long-term success:

    • Development Risks: Gene therapy development involves complex manufacturing processes, potential safety concerns, and uncertain clinical outcomes that could delay or prevent successful commercialization of pipeline candidates.
    • Market Limitations: Rare disease markets have inherently small patient populations, limiting revenue potential and requiring premium pricing strategies that may face reimbursement challenges from healthcare systems.
    • Competitive Threats: Large pharmaceutical companies and specialized biotechnology firms increasingly compete in gene therapy markets, potentially challenging Krystal's market position and pricing power.
    • Regulatory Complexity: Gene therapies face stringent regulatory oversight and evolving safety requirements that can increase development costs, extend approval timelines, and create compliance challenges.

    Final thoughts on Krystal Biotech

    Krystal Biotech's successful commercialization of Vyjuvek and strong financial performance demonstrate the company's ability to translate innovative gene therapy science into viable treatments for rare diseases. The proprietary platform technology and orphan disease focus provide competitive advantages in the expanding genetic medicine market. However, investors must consider development risks and market limitations inherent in rare disease biotechnology. Like a master geneticist rewriting the code of life, Krystal's precision approach to gene therapy positions it uniquely to benefit from the growing demand for transformative treatments in underserved patient populations.

  • Topicus (V:TOI)

    Topicus.com Inc. is a leading Canadian technology company that operates as a constellation of vertical market software businesses, providing mission-critical software solutions to specialized industries including healthcare, education, and professional services. Spun off from Constellation Software in 2021, Topicus focuses on acquiring, developing, and managing software companies that serve niche markets with high switching costs and recurring revenue models. The company has established itself as a prominent player in the vertical market software space through its disciplined acquisition strategy and operational excellence in managing diverse software portfolios.

    The company's core strategy revolves around acquiring small to medium-sized software businesses that dominate their respective vertical markets, particularly in Europe and other international markets outside North America. Topicus operates through a decentralized model where acquired companies maintain their operational independence while benefiting from the parent company's capital allocation expertise and best practices. With the continued digitalization of specialized industries and the growing demand for industry-specific software solutions, Topicus is well-positioned to capitalize on consolidation opportunities in the fragmented vertical market software landscape while delivering sustainable growth and value creation.

    Topicus financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 12.8%
    • Return on equity (ROE): 18.4%
    • Return on investment (ROI): 15.6%

    Profitability

    • Gross margin: 78.9%
    • Operating margin: 22.1%
    • Net profit margin: 16.8%

    Growth

    • EPS (past 5 years): 21.3%
    • EPS (current): 42.15
    • EPS estimate (next quarter): 45.8
    • EPS growth (this year): 18.7%
    • EPS growth (next year): 14.2%
    • EPS growth (next 5 years): 16.8%
    • EPS growth (quarter-over-quarter): 19.4%
    • Sales growth (past 5 years): 24.6%
    • Sales growth (quarter-over-quarter): 22.1%

    💡 Why invest in Topicus?

    Like a master craftsman who specializes in creating precision tools for specific trades, Topicus demonstrates compelling strengths that make it attractive in the specialized software acquisition space:

    • Vertical Market Focus Strategy: Topicus targets niche software markets with high switching costs and recurring revenue, providing defensive business characteristics and predictable cash flow generation from specialized industries.
    • Proven Acquisition Expertise: The company leverages experienced management team's track record in identifying, acquiring, and integrating vertical market software businesses while maintaining operational excellence and growth momentum.
    • Decentralized Operating Model: Topicus maintains a hands-off approach that preserves entrepreneurial culture and domain expertise within acquired companies while providing capital and strategic guidance for sustainable growth.
    • International Market Expansion: The company focuses on European and international markets outside North America, accessing fragmented software markets with significant consolidation opportunities and less competition from larger acquirers.

    🐌 Key considerations before investing in Topicus

    However, like navigating complex acquisition landscapes where valuation pressures and integration challenges create obstacles, Topicus faces several risks that software investment specialists must carefully assess:

    • Acquisition Valuation Pressure: Increasing competition for quality software assets has driven up acquisition multiples, potentially reducing future returns and making it challenging to find attractively priced acquisition targets.
    • Integration Execution Risk: Successfully managing a diverse portfolio of acquired companies requires exceptional operational capabilities, and integration failures could impact overall performance and growth trajectory.
    • Market Concentration Exposure: Heavy focus on European markets creates geographic concentration risk and exposure to regional economic conditions, regulatory changes, and currency fluctuation impacts on financial performance.
    • Capital Allocation Dependency: The company's success depends heavily on management's ability to continuously identify and execute profitable acquisitions while maintaining disciplined capital allocation and avoiding value-destructive deals.

    Final thoughts on Topicus

    Topicus's vertical market focus strategy, proven acquisition expertise, decentralized operating model, and international market expansion create compelling opportunities for investors seeking exposure to the growing vertical market software consolidation trend. However, the company's acquisition valuation pressures, integration risks, market concentration exposure, and capital allocation dependency require careful evaluation of the inherent complexities in software roll-up investing. Like a skilled portfolio manager who builds value through strategic acquisitions, Topicus offers growth potential for investors who understand both the opportunities and challenges of the specialized software acquisition business model.

  • Ensign Group (NYSE:ENSG)

    Ensign Group is a leading provider of post-acute healthcare services, specializing in skilled nursing, rehabilitation, and senior living facilities across the United States. Founded in 1999 and headquartered in San Juan Capistrano, California, the company operates a vast network of healthcare facilities that focus on high-quality patient care and clinical excellence. Ensign Group has built a strong reputation for its decentralized operational model, allowing local facility leaders to make decisions tailored to their communities' specific needs.

    With a commitment to patient-centered care and operational excellence, Ensign Group provides comprehensive services including physical therapy, occupational therapy, and long-term care solutions. The company's business strategy emphasizes acquiring and improving underperforming healthcare facilities, leveraging its expertise to enhance operational efficiency and patient outcomes. Through strategic acquisitions and organic growth initiatives, Ensign Group continues to expand its footprint in the post-acute healthcare industry while maintaining high standards of care.

    Ensign Group financial statements

    Analysts recommendation: 1.5

    Financial Health

    • Return on assets (ROA): 6.82%
    • Return on equity (ROE): 17.66%
    • Return on investment (ROI): 8.07%

    Profitability

    • Gross margin: 13.75%
    • Operating margin: 8.56%
    • Net profit margin: 7%

    Growth

    • EPS (past 5 years): 20.98%
    • EPS (current): 5.32
    • EPS estimate (next quarter): 1.55
    • EPS growth (this year): 14.69%
    • EPS growth (next year): 10.58%
    • EPS growth (next 5 years): 12.05%
    • EPS growth (quarter-over-quarter): 15.47%
    • Sales growth (past 5 years): 16.02%
    • Sales growth (quarter-over-quarter): 19.34%

    💡 Why invest in Ensign Group?

    Like a compassionate healthcare architect building bridges between medical excellence and community care, Ensign Group creates value through strategic facility management:

    • Demographic Tailwinds: Ensign Group benefits from America's aging population and increasing demand for skilled nursing and rehabilitation services, creating sustained growth opportunities in the expanding senior healthcare market.
    • Acquisition Expertise: The company's proven ability to acquire underperforming healthcare facilities and improve their operations through operational excellence and clinical quality enhancements drives consistent value creation.
    • Decentralized Model: Ensign's decentralized operational approach empowers local facility leaders to make community-specific decisions, improving patient satisfaction, staff retention, and operational efficiency across the network.
    • Financial Performance: The company demonstrates strong financial metrics with consistent revenue growth, healthy margins, and effective capital allocation strategies that generate attractive returns for shareholders.

    🐌 Key considerations before investing in Ensign Group

    Even the most dedicated healthcare providers face systemic challenges that can impact operational performance and financial results:

    • Regulatory Complexity: Ensign Group operates in a heavily regulated healthcare environment where changes in Medicare, Medicaid, and state regulations can significantly impact reimbursement rates and operational costs.
    • Labor Challenges: The healthcare industry faces persistent staffing shortages and rising labor costs, particularly for skilled nursing professionals, which can pressure margins and affect service quality.
    • Reimbursement Pressure: Government reimbursement programs represent significant revenue sources, and policy changes or rate reductions could materially impact the company's financial performance and growth prospects.
    • Integration Risks: Ensign's acquisition-driven growth strategy requires successful integration of new facilities, and execution challenges could disrupt operations, affect patient care quality, and impact financial results.

    Final thoughts on Ensign Group

    Ensign Group's strategic positioning in the growing post-acute healthcare market and proven acquisition expertise create compelling investment opportunities in essential healthcare services. The company's decentralized operational model and strong financial performance demonstrate effective management of complex healthcare operations. However, investors must consider regulatory risks and labor challenges that characterize the healthcare sector. Like a skilled healthcare administrator balancing clinical excellence with operational efficiency, Ensign Group's ability to navigate industry complexities while delivering quality patient care makes it increasingly valuable as America's healthcare needs continue to evolve.

  • Merit Medical Systems (NYSE:MMSI)

    Merit Medical Systems is a global manufacturer and distributor of medical devices used primarily in interventional, diagnostic, and therapeutic procedures. Founded in 1987 by Fred P. Lampropoulos and headquartered in South Jordan, Utah, the company has expanded its product portfolio and global reach to become a key player in the medical technology industry. Over the years, Merit Medical has built a reputation for innovation and quality manufacturing in the interventional medicine space.

    The company's core business focuses on developing and supplying a wide range of medical products, including catheters, guide wires, embolotherapy devices, and hemostasis management tools. Merit Medical serves hospitals, healthcare providers, and specialty clinics worldwide, emphasizing innovation and high-quality manufacturing to improve patient outcomes. Its commitment to advancing minimally invasive procedures has positioned it as a leader in the interventional medicine space, with products used in cardiovascular, peripheral vascular, and oncology procedures.

    Merit Medical Systems financial statements

    Analysts recommendation: 1.42

    Financial Health

    • Return on assets (ROA): 5.1%
    • Return on equity (ROE): 9.16%
    • Return on investment (ROI): 5.47%

    Profitability

    • Gross margin: 47.76%
    • Operating margin: 12.48%
    • Net profit margin: 8.82%

    Growth

    • EPS (past 5 years): 83.71%
    • EPS (current): 2.04
    • EPS estimate (next quarter): 0.85
    • EPS growth (this year): -3.38%
    • EPS growth (next year): 13.19%
    • EPS growth (next 5 years): 5.82%
    • EPS growth (quarter-over-quarter): 2.03%
    • Sales growth (past 5 years): 6.51%
    • Sales growth (quarter-over-quarter): 9.67%

    💡 Why invest in Merit Medical Systems?

    Like a skilled surgeon wielding precision instruments, Merit Medical creates life-saving tools that enable minimally invasive medical procedures:

    • Interventional Focus: Merit Medical specializes in interventional medical devices including catheters, guide wires, and embolotherapy products that enable minimally invasive procedures, benefiting from growing demand.
    • Product Innovation: The company invests heavily in R&D to develop innovative medical devices and technologies, maintaining competitive advantages through continuous product improvements and new introductions.
    • Global Distribution: Merit Medical operates worldwide with manufacturing facilities and distribution networks across multiple continents, providing access to growing international healthcare markets and geographic diversification.
    • Recurring Revenue: The company generates stable revenue streams through disposable medical devices and consumable products that require regular replacement, creating predictable demand patterns from healthcare providers.

    🐌 Key considerations before investing in Merit Medical Systems

    Even the most precise medical instruments face challenges that can impact their ability to deliver consistent growth and market penetration:

    • Regulatory Complexity: Merit Medical operates in heavily regulated markets requiring FDA approvals and international certifications, creating lengthy development timelines, compliance costs, and approval delays.
    • Competitive Pressure: The medical device industry faces intense competition from established healthcare giants and innovative startups, pressuring margins and requiring continuous R&D investments to maintain market position.
    • Healthcare Spending: The company's performance depends on healthcare capital expenditures and procedure volumes, making it vulnerable to budget constraints, reimbursement changes, and economic downturns affecting hospital spending.
    • Product Lifecycle: Medical devices face finite product lifecycles and require continuous innovation to maintain relevance, creating ongoing R&D costs and risks associated with new product development and market acceptance.

    Final thoughts on Merit Medical Systems

    Merit Medical Systems' specialization in interventional medical devices and commitment to innovation create compelling opportunities in the growing minimally invasive procedure market. The company's global distribution network and recurring revenue model provide competitive advantages in serving healthcare providers worldwide. However, investors must consider regulatory complexities and competitive pressures that characterize the medical device sector. Like a precision medical instrument calibrated for optimal performance, Merit Medical's specialized expertise becomes increasingly valuable as healthcare continues its shift toward less invasive treatment options.

If you are interested in other stock categories, check out my other lists of the best mid-cap industrial, energy, basic materials, utility, retail, healthcare, tech, financial, semiconductor stocks.