In this article, we will be taking a look at the 10 best immunology stocks to buy now.

The Growing Market for Immune System Treatments

Immunology is a rapidly advancing field with significant potential for growth, especially in the realm of biotech and pharmaceutical companies. As the global demand for innovative treatments for autoimmune diseases, cancer immunotherapies, and vaccines continues to rise, immunology stocks present lucrative investment opportunities. The market for immunotherapy medications is expected to rise at a high pace, from $240 billion in 2023 to $1.3 trillion in 2033. The rise in chronic illnesses like infections, autoimmune diseases, and various forms of cancer worldwide is what is causing the surge.

The prevalence of cancer in particular is rising worldwide. In its 2024 Global Cancer Statistics report, the American Cancer Society has brought attention to the rising global cancer burden. About 9.7 million individuals lost their lives to cancer in 2022 alone, while an estimated 20 million new cases were identified. About 35 million new cases of cancer are predicted to occur annually by 2050, increasing the need for cutting-edge therapies like immunotherapy.

Immunotherapy is a viable substitute for conventional treatments, and as research progresses, its uses are growing. It can be used alone or in conjunction with chemotherapy or other treatments for a variety of cancer types. A form of non-specific immunotherapy called immunomodulating drugs aids in enhancing the body’s immune system’s capacity to identify and combat cancer cells.

Investments and Advancements in Immunotherapy Treatments

Leading pharmaceutical companies are also making significant investments in research and development to increase the variety of immunotherapy medications available due to the rising demand for treatments. These consist of monoclonal antibodies, CAR-T cell treatments, and immune checkpoint inhibitors. Immunotherapy is being used in novel ways and is poised to transform cancer treatment and other medical fields by combining several therapies and customizing care for each patient.

Medical breakthroughs and regulatory approvals, especially in the US, propelled North America to the top of the worldwide immunotherapy medication market in 2023, accounting for about 48.19% of total revenue. The region’s expertise in cutting-edge treatments including tumor-agnostic medicines is highlighted by the FDA’s approval of immunotherapy for tumors with particular genetic features, regardless of origin.

In 2024, there will likely be more than 2 million new instances of cancer in the US, which will increase demand for efficient therapies like immunotherapy. To provide patients with incurable malignancies like lymphoma and B-cell leukemia hope, groups like Canada’s National Research Council are also creating novel immunotherapies.

Our Methodology

For this article, we selected the top 10 holdings from the iShares Genomics Immunology and Healthcare ETF. These immunology stocks were then ranked in ascending order based on the number of hedge fund holders as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Here is our list of the 10 best immunology stocks to buy now.

10. BeiGene, Ltd. (NASDAQ:ONC)

Number of Hedge Fund Holders: 30

BeiGene, Ltd. (NASDAQ:ONC) is a global biotechnology company specializing in oncology treatments, focusing on blood cancers and solid tumors. The company stands out in the immunology and oncology field by combining the development of proprietary drugs with in-licensing promising candidates from other companies, creating a diverse and resilient pipeline while managing the risks of drug development.

BeiGene, Ltd. (NASDAQ:ONC) has launched a Phase 1 clinical trial (NCT05093270) for BGB-23339, a selective TYK2 inhibitor targeting immune-mediated disorders like psoriasis and inflammatory bowel disease. The trial will assess the drug’s safety, tolerability, and pharmacokinetics in up to 115 healthy volunteers, making it one of the best immunology stocks to watch.

BeiGene, Ltd. (NASDAQ:ONC) is also strengthening its immunology portfolio through collaborations. Its partnership with Novartis focuses on developing ociperlimab, a TIGIT inhibitor, while a Phase 3 trial with ImmunityBio combines BeiGene’s PD-1 inhibitor, tislelizumab, with ANKTIVA for non-small cell lung cancer.

Looking ahead, BeiGene, Ltd. (NASDAQ:ONC) aims to develop more immunology treatments, explore combination therapies, and leverage its expertise in biologics and small-molecule drugs to advance innovative solutions for immune-related diseases.

Baird Asset Management controlled Chautauqua Capital Management, a boutique investment firm, released the third-quarter 2024 investor letter. Here is what the fund said:

“BeiGene, Ltd. (NASDAQ:BGNE) is expected to have excellent top-and bottom-line growth over the next several years, driven by Brukinsa, their best-in-class product in several hematology cancers, with a global market size of approximately $9 billion in 2023. Even though the company is truly global in nature, incorporated in Switzerland and headquartered in Basal, Beijing, and Cambridge, MA, its valuation was depressed due to negative sentiment towards China, as it does have a large R&D and sales team in China. The recent rally in China stocks has somewhat reduced the extreme pessimism seen earlier in the year.”

9. BioNTech SE (NASDAQ:BNTX)

Number of Hedge Fund Holders: 35

BioNTech SE (NASDAQ:BNTX) specializes in immunotherapies and vaccines, leveraging the immune system to fight cancer and infectious diseases. The company stands out for its pioneering work in mRNA technology, enabling rapid vaccine and therapeutic development. This expertise has positioned the company as a leader in mRNA-based treatments, demonstrating its ability to respond swiftly to global health challenges.

BioNTech SE (NASDAQ:BNTX) is advancing mRNA-based individualized neoantigen-specific immunotherapies (iNeST), with its candidate autogene cevumeran (BNT122) showing promising Phase 1 results in pancreatic cancer. The corporation also gained global recognition for its BNT162b2 mRNA COVID-19 vaccine, which stimulates strong immune responses and enhances innate immunity.

Beyond mRNA, BioNTech SE (NASDAQ:BNTX) is developing small molecule immunomodulators targeting Toll-Like Receptors (TLRs) to trigger immune responses against cancer. Additionally, its FixVac platform (BNT111) has shown positive Phase 2 results in melanoma, while its acquisition of Biotheus strengthens its bispecific antibody capabilities.

In fiscal Q3 2024, BioNTech SE (NASDAQ:BNTX)’s revenues increased from €895.3 million in fiscal Q3 2023 to €1.24 billion. Additionally, its net profit went from €160.6 million to €198.1 million, and its diluted profits per share rose from €0.66 to €0.81 ($0.89). The successful launch of COVID-19 vaccines for the 2024–2025 season and their approval were credited with this revenue increase.