The cancer market is seeing significant growth and evolution as there is a rising demand for targeted, less toxic cancer medicines. 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. This resulted in a massive increase in the global spending on cancer medicines.
The field of cancer treatments has seen remarkable progress with the emergence of innovative cancer treatments like immunotherapy, targeted therapies and personalized vaccines. Immune-based oncology treatments — ranging from checkpoint inhibitors and CAR-T cell therapies to cancer vaccines and oncolytic viruses — leverage the body’s own immune system to identify and destroy cancer cells. Targeted therapies, meanwhile, are designed to home in on specific genetic mutations that fuel cancer growth, offering a more precise and often less harmful alternative to traditional chemotherapy. Personalized vaccines, which use a patient's own tumor proteins to stimulate an immune response, are another promising advancement in this space.
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.
Almost all big drugmakers, including Novartis NVS, AstraZeneca AZN, Pfizer PFE, AbbVie ABBV and Eli Lilly, 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 make 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 Verastem Oncology VSTM, Relay Therapeutics RLAY and Pyxis Oncology PYXS.
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3 Cancer Stocks in Focus
Verastem Oncology’s new drug application (NDA) seeking approval of its novel combination regimen of avutometinib plus defactinib for treating KRAS mutant recurrent low-grade serous ovarian cancer (LGSOC), a rare and distinct type of ovarian cancer, is under priority review with the FDA. The FDA’s decision on the NDA is expected on June 30, 2025. Avutometinib is an RAF/MEK clamp, while defactinib is a best-in-class selective FAK inhibitor.
The avutometinib/defactinib regimen, if approved, will become the first-ever FDA-approved treatment specifically for adults with recurrent KRAS mutant LGSOC. Verastem is preparing for a potential commercial launch of the combo therapy in the United States in mid-2025. The company is also evaluating avutometinib plus defactinib in combination studies in first-line metastatic pancreatic cancer as well as non-small cell lung cancer in early to mid-stage studies.
This Zacks Rank #2 (Buy) company also expects to initiate an early-stage study for VS-7375, its recently licensed KRAS G12D (ON/OFF) inhibitor. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Relay Therapeutics’ RLY-2608 breast cancer program progressed rapidly in 2024. In September last year, Relay Therapeutics announced positive interim data from the early-stage study of its lead investigational candidate, RLY-2608, in combination with AstraZeneca’s Faslodex (fulvestrant) for treating heavily pretreated patients with PI3Kα-mutated, HR+, HER2- locally advanced or metastatic breast cancer (MBC).
Interim data from the study showed that treatment with this two-drug therapy resulted in a clinically meaningful progression-free survival. Based on the encouraging data from the doublet arm of the MBC study, Relay Therapeutics is gearing up to initiate a pivotal study of RLY-2608 in combination with Faslodex for second-line PI3Kα-mutated, HR+/HER2- advanced breast cancer in mid-2025.
The company is also making progress in its development plans for investigational triplet combinations, which it believes can allow RLY-2608 to address patients in earlier settings.
Relay Therapeutics is also rapidly progressing with the development of other front-line breast cancer regimens while planning for the development of future oral endocrine therapy combinations.
Relay Therapeutics has a Zacks Rank of 2.
Pyxis Oncology is a cancer biotech focused on developing next-generation therapeutics to target difficult-to-treat cancers.
In November last year, Pyxis announced preliminary data from a phase I clinical dose escalation study that demonstrated that Pyxis’ lead pipeline candidate, micvotabart pelidotin (formerly PYX-201), has a profound monotherapy effect on multiple tumor types with significant tumor regression. Significant clinical responses were observed in patients with recurrent and metastatic head and neck squamous cell carcinoma (R/M HNSCC). The FDA has granted Fast Track Designation to micvotabart pelidotin for the treatment of adult patients with R/M HNSCC whose disease has progressed following treatment with platinum-based chemotherapy and an anti-PD-(L)1 therapy.
This Zacks Rank #2 company has also entered into a clinical trial collaboration agreement with Merck to study a combination of PYX-201 and Merck’s anti-PD-1 therapy, Keytruda (pembrolizumab), in R/M HNSCC and breast cancer indications. A phase I study has been initiated in patients with R/M HNSCC and other advanced solid tumors, with preliminary data expected in the second half of 2025.
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