The biotech sector is seeing a strong recovery in 2025 with the Nasdaq Biotechnology Index up 33.1% year-to-date. The rally is being driven by a surge in M&A activity, over 42 FDA approvals, and interest in AI drug discovery. Additionally, the Trump administration recently signed agreements with companies like Gilead and Merck to lower prescription drug prices for chronic conditions, with the industry pledging $150 billion for domestic production. Zacks highlighted three stocks that have performed well in this environment: **EyePoint (EYPT)** Up 140.5% in 2025. They focus on retinal diseases, and their lead candidate Duravyu is in late-stage studies. Data readouts are expected in mid-2026. Analysts have a price target of $34.18. **ANI Pharmaceuticals (ANIP)** Up 52.9% over the last year. Sales of their rare disease drug Cortrophin Gel jumped 70% to $236 million. They also recently acquired Alimera Sciences to expand their portfolio. **Tango Therapeutics (TNGX)** Up 163.8% in a year. They focus on precision cancer medicines. They reported positive data in October for their drug vopimetostat and received orphan drug designation for another candidate treating malignant glioma.