The landscape of cancer treatment is undergoing a transformative shift as there is a rising demand for targeted, less toxic cancer medicines.
The cancer field has seen significant advancements with the emergence of new cancer treatments like immunotherapy, targeted therapies and personalized vaccines. Immune-based oncology treatments range from checkpoint inhibitors and CAR-T cell therapies to cancer vaccines and oncolytic viruses. These work by harnessing the body’s own immune system to attack cancer cells.
Targeted therapies specifically target the genetic mutations driving a particular cancer, thereby offering more precise treatment options with fewer side effects than traditional chemotherapy treatment. Personalized cancer vaccines use a patient's own tumor proteins to trigger an immune response against cancer cells.
While decades of research and advanced treatments have prolonged the lives of cancer patients in the last 20 years, a possible cure remains elusive. As the world at large continues to grapple with a significant increase in the number of cancer patients, the market for innovative cancer treatments and diagnostics is expected to grow concurrently.
According to the American Cancer Society, 2024 was the first time that new cancer cases in the United States were expected to cross the 2-million mark.
Almost all big drugmakers, including Novartis NVS, AstraZeneca AZN, Pfizer PFE, AbbVie ABBV and Eli Lilly LLY, are involved in making new cancer therapies, including antibody-drug conjugates and immune-oncology agents, which can enhance treatment efficacy and improve patient outcomes. Several smaller biotechs are also making significant advancements in cancer research and treatment. Drugmakers also have an increasing interest in buying out smaller companies that are making innovative cancer treatments with novel mechanisms of action with the potential for better outcomes than currently available drugs.
These factors highlight the huge potential for cancer-focused companies. With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you’re looking to align your portfolio with this rising trend, now might be the time to consider stocks like Novartis, Exact Sciences EXAS and Monte Rosa Therapeutics GLUE.
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and uncover your next big opportunity.
Novartis has a diverse oncology portfolio, including targeted therapies and immunotherapies.
The FDA’s approval of Kisqali, its CDK4/6 inhibitor, for the first-line treatment of postmenopausal women with HR+/HER2 advanced or metastatic breast cancer significantly boosted the company’s oncology portfolio. The drug is now one of the company's top growth drivers. In particular, Kisqali has shown robust uptake in the metastatic breast cancer setting.
Other new oncology drugs like Pluvicto ((PSMA-positive metastatic castration-resistant prostate cancer) and Scemblix (chronic myeloid leukemia) have also put up a stellar performance, setting the momentum for the coming years as well. Novartis’ oncology sales rose 16% in constant currency terms to $14.74 billion in 2024.
This Zacks Rank #3 (Hold) company is also investing in research to develop treatments for both common and rare cancers, focusing on precision medicine strategies. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Exact Sciences Corporation is a molecular diagnostics company focused on the early detection and prevention of some of the deadliest forms of cancer. The company has developed an accurate, non-invasive, patient-friendly screening test called Cologuard for the early detection of colorectal cancer and pre-cancer. At present, Exact Sciences’ products and services focus on Screening and Precision Oncology Tests. Within these two segments, Exact Sciences has two of the strongest brands in cancer diagnostics, Cologuard and Oncotype DX.
In 2024, screening revenues increased 13%, driven by Cologuard volume, while Precision Oncology rose 4%.
This #3 Ranked company is currently working on the development of additional tests for other types of cancer. Over the next 18 months, it plans to introduce several novel tests that will revolutionize how cancer is identified, tracked and managed. In 2025, it plans to launch three new cancer tests.
Monte Rosa Therapeutics is a clinical stage small biotech making highly selective molecular glue degrader (MGD) for cancer as well as autoimmune and inflammatory diseases. MGDs are a novel class of small molecules designed to selectively eliminate disease-driving proteins. In cancer, its lead candidate is MRT-2359, which targets GSPT1, a translation termination factor. MRT-2359 is being developed in a phase I/II study in patients with MYC-driven solid tumors.
Interim data from the study, presented in December 2024, demonstrated a favorable safety profile and degradation of GSPT1 to desired levels in patients with heavily pretreated solid tumors.
Additional data, including biomarker and activity data, from the phase I/II study is expected to be announced in the first quarter of 2025. Monte Rosa has a Zacks Rank of 3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Novartis AG (NVS) : Free Stock Analysis Report
Pfizer Inc. (PFE) : Free Stock Analysis Report
Eli Lilly and Company (LLY) : Free Stock Analysis Report
AbbVie Inc. (ABBV) : Free Stock Analysis Report
Exact Sciences Corporation (EXAS) : Free Stock Analysis Report
Monte Rosa Therapeutics, Inc. (GLUE) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.