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.
8. SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)
Number of Hedge Fund Holders: 40
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is dedicated to developing targeted therapies for rare diseases and cancer. The company focuses on high unmet medical needs and its key products include OGSIVEO (nirogacestat) for desmoid tumors and GOMEKLITM (mirdametinib) for neurofibromatosis type 1 with plexiform neurofibromas (NF1-PN).
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) is advancing nirogacestat, a gamma-secretase inhibitor, as a BCMA potentiator for immunotherapy in multiple myeloma. The drug is being evaluated in combination with various BCMA-targeted therapies, including antibody-drug conjugates, CAR T cell therapies, bispecific antibodies, and monoclonal antibodies, to enhance treatment efficacy, making it one of the leading best immunology stocks in the world.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) has established key research collaborations to explore nirogacestat’s immunological potential. It is partnering with Fred Hutchinson Cancer Research Center to study its role in BCMA modulation and with Dana-Farber Cancer Institute to evaluate its effects using preclinical multiple myeloma models. These efforts highlight the company’s commitment to advancing targeted therapies for improved cancer treatment.
SpringWorks Therapeutics, Inc. (NASDAQ:SWTX)’s OGSIVEO’s net product revenue in Q3 2024 was $49.3 million, a 23% sequential increase. Demand from both new and returning patients who saw clinical advantages drove this expansion. Due to its successful debut, OGSIVEO is now the accepted systemic treatment for desmoid tumors. Given that only a small percentage of eligible patients have been contacted thus far, market research suggests substantial growth potential. Patient convenience and adherence have increased with the introduction of new tablet strengths and blister packaging.
7. Sanofi (NASDAQ:SNY)
Number of Hedge Fund Holders: 33
Sanofi (NASDAQ:SNY) stands seventh among the best immunology stocks to buy now. It is a global healthcare company specializing in innovative medicines and vaccines across immunology, oncology, rare diseases, neurology, and diabetes. It generates revenue by selling prescription drugs, vaccines, and consumer healthcare products to healthcare providers, pharmacies, and governments in over 170 countries.
Sanofi (NASDAQ:SNY) is establishing itself as a leader in immunology research through its “immunoscience” approach, which focuses on understanding immune pathways beyond specific diseases. This strategy allows the company to apply deep biological insights across various therapeutic areas and develop versatile treatments that address multiple conditions.
Sanofi (NASDAQ:SNY)’s immunology research spans gastroenterology, respiratory diseases, dermatology, and immunologic disorders, with additional exploration in neurology, oncology, hematology, rare diseases, and vaccines. As of 2025, its pipeline includes multiple Phase 3 clinical trials and promising oral anti-inflammatory treatments like SAR441566 for psoriasis and rheumatoid arthritis. The company is also advancing 12 potential blockbuster assets, such as Amlitelimab and Frexalimab, each with projected peak sales exceeding €5 billion.
For FY 2024, Sanofi (NASDAQ:SNY) announced total sales of €41.1 billion, an 11.3% increase at constant currency rates (CER). Dupixent made about €13 billion in its first full year, while Beyfortus, a novel RSV vaccination for babies, became a bestseller with €1.7 billion. SNY’s EPS grew 4.1% at CER to €7.12, above the estimate, despite a 1.8% decline in reported terms. The company also proposed a €3.92 dividend for 2024, marking the 30th consecutive year of growth.
6. GSK plc (NYSE:GSK)
Number of Hedge Fund Holders: 38
GSK plc (NYSE:GSK) specializes in pharmaceuticals, vaccines, and consumer health products, with a strong focus on immunology. Its specialty medicines division targets complex diseases like lupus, asthma, and COPD, using advanced technologies to develop innovative treatments.
GSK plc (NYSE:GSK) has made immunology a core therapeutic focus alongside infectious diseases, HIV, and oncology, investing £6.2 billion in R&D in 2023 to strengthen its pipeline, solidifying its position among the best immunology stocks. The company is actively developing several immunology candidates, including CMG1A46, a dual CD19/CD20-targeted T cell engager for lupus, and GSK4527363, a B-cell modulator for systemic lupus erythematosus. Other notable developments include depemokimab, an anti-IL5 antibody in Phase III trials for asthma, and camlipixant, a P2X3 receptor antagonist for refractory chronic cough.
For fiscal Q4 2024, GSK plc (NYSE:GSK) released impressive financial results that showed a robust increase in all important parameters. In 2024, its core operating profit increased by 13% while its sales increased by 8% to nearly £31 billion. Core profits per share (EPS) increased by 12% as well.
GSK plc (NYSE:GSK)’s Specialty Medicines business saw a 19% increase in sales, which was credited with this success. Its oncology revenues almost doubled to over £1.4 billion in 2024, while its HIV sales increased by 13%. With five new product approvals expected in 2025 and 11 successful phase III studies reported in 2024, the company is steadily bolstering its pipeline. These include depemokimab for severe asthma and Blenrep for multiple myeloma.
5. Twist Bioscience Corporation (NASDAQ:TWST)
Number of Hedge Fund Holders: 26
Twist Bioscience Corporation (NASDAQ:TWST) is a synthetic biology company that revolutionizes DNA synthesis by using silicon chips instead of traditional plastic plates, enabling more efficient and cost-effective production. Its product portfolio includes synthetic genes, gene fragments, oligonucleotides, NGS tools, and antibody discovery solutions, supporting applications in drug development, disease treatment, sustainable agriculture, and DNA-based data storage.
Twist Bioscience Corporation (NASDAQ:TWST), standing fifth in our list of best immunology stocks to buy now, is advancing immunology through its innovative DNA synthesis technology and antibody discovery platforms. The company is developing a proprietary “Library of Libraries” to rapidly identify antibodies for immunological targets and has partnered with Kyowa Kirin to explore antibodies targeting G-protein coupled receptors (GPCRs), which regulate immune system function. Additionally, the corporation is working on checkpoint inhibitor research, including its TB206-001 antibody, which could enhance cancer immunotherapy.
In tumor microenvironment research, Twist Bioscience Corporation (NASDAQ:TWST) collaborates with Astellas Pharma to identify antibodies that reduce immunosuppression in tumors, aiming to boost anti-tumor immunity. The company also integrates AI and machine learning into antibody discovery and offers high-throughput antibody production for faster therapeutic development. It is targeting challenging immune system proteins, such as GPCRs and ADORA2A, and has formed partnerships with organizations like MediSix Therapeutics and Pure Biologics to further immunology research.
4. Exelixis, Inc. (NASDAQ:EXEL)
Number of Hedge Fund Holders: 46
Exelixis, Inc. (NASDAQ:EXEL) is focused on developing small-molecule therapies for cancer, with its flagship product being CABOMETYX (cabozantinib). The company utilizes a proprietary platform based on comparative genomics and model system genetics to rapidly translate genomic data into insights for drug discovery. This unique approach has enabled the company to build a strong pipeline of potential cancer treatments.
Exelixis, Inc. (NASDAQ:EXEL) has been active in immunology research since the early 2000s, including a 2002 collaboration that identified a new role for the PGRP-LC gene in Drosophila immunity, suggesting similar pathways in humans. The company pursued immuno-oncology collaborations, such as a 2022 agreement with BioInvent, which was terminated in 2024, and a 2024 partnership with Merck to evaluate zanzalintinib in combination with Merck’s immunotherapies for head and neck cancer and renal cell carcinoma. Exelixis, Inc. (NASDAQ:EXEL) is conducting clinical trials, including the STELLAR-001 and STELLAR-305 trials, to explore combinations of its compounds with immunotherapies, while continuing to expand its biotherapeutics pipeline with a focus on tyrosine kinase inhibitors and novel immuno-oncology therapies.
Exelixis, Inc. (NASDAQ:EXEL) reported strong financial performance in Q4 2024, with total revenues of approximately $567 million, driven by a 20% year-over-year increase in U.S. cabozantinib (Cabo) franchise net product revenues, reaching $515 million. Global Cabo revenues totaled about $690 million for Q4, with full-year revenues of $2.5 billion. The company also earned $51.5 million in collaboration revenues, primarily from royalties on cabozantinib sales. Operating expenses were $403 million, and the company achieved a GAAP net income of $139.9 million. The company also repurchased $656 million worth of shares in 2024 and had $1.75 billion in cash and marketable securities at year-end. The growth reflects continued demand for its CABOMETYX treatment for renal cell carcinoma.
3. Incyte Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 49
Incyte Corporation (NASDAQ:INCY) is a global biopharmaceutical company focused on immunology, with expertise in dermatology, oncology, and autoimmune diseases. In dermatology, the company is developing treatments for immune-mediated conditions like atopic dermatitis and vitiligo, notably with ruxolitinib cream (Opzelura), which has shown promising results.
In oncology, Incyte Corporation (NASDAQ:INCY) is advancing cancer immunotherapy through targeted therapy discovery, functional genomics, and combination therapies targeting immune checkpoints like PD-1 and LAG-3, making it one of the best immunology stocks to watch.
In addition, Incyte Corporation (NASDAQ:INCY) is a leader in therapies for myeloproliferative neoplasms (MPNs) and graft-versus-host disease (GVHD), with ongoing clinical trials evaluating novel treatments like axatilimab and ruxolitinib-based combinations. Recently, the corporation realigned its R&D priorities by focusing on dermatology and inflammation assets, particularly those acquired from Escient Pharmaceuticals, and discontinuing early-stage immunotherapies. The company continues its diverse clinical programs and supports independent research through its Investigator-Initiated Research program.
Incyte Corporation (NASDAQ:INCY)’s Q4 2024 financial report showed strong growth, with total revenue reaching $1.2 billion, a 16% increase year-over-year. For the full year, revenue rose 15% to $4.2 billion. Jakafi (ruxolitinib) generated $773 million in Q4, up 11%, and $2.8 billion for the full year, an 8% increase. Opzelura (ruxolitinib) cream saw impressive growth, with Q4 revenues reaching $162 million, up 48%, and $508 million for the full year, a 50% increase. For 2025, Incyte Corporation (NASDAQ:INCY) projects Jakafi revenues to range between $2.93 – $2.98 billion and Opzelura between $630 – $670 million. The company also anticipates four new product launches, including Niktimvo for chronic graft-versus-host disease. The corporation completed a $2 billion share repurchase and maintains a strong balance sheet with $2.2 billion in cash and no debt.
2. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 55
AstraZeneca PLC (NASDAQ:AZN), a British-Swedish pharmaceutical company, develops prescription medicines across key areas like oncology, cardiovascular, respiratory, and immunology. The company combines its respiratory expertise with a focus on unmet needs in immune-mediated conditions, advancing a broad immunology pipeline. Key therapeutic targets include rheumatology, dermatology, gastroenterology, and systemic eosinophilic-driven diseases.
AstraZeneca PLC (NASDAQ:AZN) is also developing CAR-T, TCR-T, and Treg cell therapies in collaboration with Quell Therapeutics for type 1 diabetes and inflammatory bowel disease. Notable treatments include Tezspire, for severe asthma, and Saphnelo, for lupus-related conditions. The company’s future strategy centers on disease modification, expanding treatment options and exploring emerging science to develop potentially curative therapies for immune-mediated diseases.
AstraZeneca PLC (NASDAQ:AZN) is strengthening its portfolio of FDA-approved drugs. In January, it obtained FDA approval for Dato DXd, a treatment for advanced-stage breast cancer. The corporation estimates that this treatment will generate annual sales of $5 billion. It also plans to release seven high-value drugs in the market in 2025.
1. Merck and Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 91
Merck & Co., Inc. (NYSE:MRK) tops our list for being the best immunology stock. It is a global pharmaceutical company focused on developing innovative medicines, vaccines, and animal health products. It specializes in cancer, infectious diseases, and immune-mediated inflammatory disorders.
Merck & Co., Inc. (NYSE:MRK) is investing heavily in immunology research to develop novel treatments for autoimmune diseases, focusing on targets like TL1A, IL-2, and CD30L1, while exploring biomarkers to identify responsive patients and developing precise immune modulation methods.
Merck & Co., Inc. (NYSE:MRK) is pursuing therapies for conditions such as multiple sclerosis, systemic lupus erythematosus, and arthritis, targeting both innate and adaptive immune components. The company has made strategic acquisitions, including Prometheus Biosciences for $10.8 billion, and formed partnerships with Curon Biopharmaceutical and Culmination Bio to expand its immunology pipeline. Merck embraces precision medicine and leverages data from Prometheus and applies its oncology expertise to inflammatory bowel disease. Their pipeline aims to transform treatments for chronic conditions and autoimmune disorders, advancing first-in-class therapies through internal and external collaborations.
Merck & Co., Inc. (NYSE:MRK) has received European Commission conditional approval for WELIREG (belzutifan), the first oral HIF-2α inhibitor in the EU, for treating adult patients with von Hippel-Lindau (VHL) disease and advanced clear cell renal cell carcinoma. Despite some challenges, such as halting shipments of its HPV vaccine Gardasil to China until mid-2025, the company continues to perform well. Strong demand for its innovative portfolio, including the cancer drug Keytruda and the newly launched Winrevair for pulmonary arterial hypertension, is driving revenue growth.
GreensKeeper Asset Management, an investment management company, released its Q3 investor letter. Here is what the fund said:
“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”
Overall, Merck & Co., Inc. (NYSE:MRK) ranks first among the 10 best immunology stocks to buy now. While we acknowledge the potential of MRK, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.