In this article, we will discuss the 10 best immunotherapy stocks to buy now.
The global immunotherapy drugs market is rapidly expanding, with projections to grow from $240 billion in 2023 to $1.3 trillion by 2033. The growth is driven by the global rise in chronic diseases such as different types of cancer, autoimmune diseases, and infections.
Cancer, particularly is becoming more prevalent among people globally. The American Cancer Society recently released its 2024 Global Cancer Statistics report, which highlights the increasing burden of cancer worldwide. In 2022 alone, approximately 20 million new cancer cases were diagnosed, and 9.7 million people died from the disease. By 2050, annual cancer cases are expected to reach 35 million, driving demand for innovative treatments like immunotherapy.
Immunotherapy offers a promising alternative to traditional therapies, and its applications are expanding as research advances. It can be applied to various types of cancer, either alone or alongside treatments like chemotherapy. Immunomodulating agents, a type of non-specific immunotherapy, help improve the body’s immune system’s capability of detecting and attacking cancer cells.
Read Also: 10 Best Biotech Stocks To Buy Under $20 and 10 Best Cancer Stocks To Buy Now.
Due to the growing demand for treatments, leading pharmaceutical companies are also investing heavily in research and development to expand the range of immunotherapy drugs available. These include immune checkpoint inhibitors, CAR-T cell therapies, and monoclonal antibodies. Combining different therapies and tailoring treatments to individual patients is helping to unlock new applications for immunotherapy, positioning it to revolutionize cancer care and other areas of medicine.
North America led the global immunotherapy drugs industry in 2023, capturing over 48.19% of total revenue, driven by medical advancements and regulatory approvals, particularly in the US. The FDA’s approval of immunotherapy for cancers with specific genetic traits, regardless of origin, highlights the region’s leadership in innovative treatments like tumor-agnostic therapies.
With over 2 million new cancer cases expected in the US in 2024, demand for effective treatments like immunotherapy will continue to grow. Organizations such as Canada’s National Research Council are also developing new immunotherapies, aiming to provide hope for patients with hard-to-treat cancers like B-cell leukemia and lymphoma.
A research scientist working in her lab, analyzing data that may lead to a breakthrough in COVID-19 immunotherapy products.
Our Methodology
We selected stocks from ETFs with immunotherapy exposure and narrowed down the list to the top 10 companies with the highest number of hedge funds holding stakes in them. The hedge fund sentiment has been sourced from Insider Monkey’s database of 912 hedge funds as of Q2 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Immunotherapy Stocks to Buy Now
10. Immunocore Holdings plc (NASDAQ:IMCR)
Number of Hedge Fund Holders: 24
Immunocore Holdings plc (NASDAQ:IMCR) is a biotechnology company focused on developing innovative drugs to treat cancer, infectious diseases, and autoimmune conditions.
The company’s flagship product, KIMMTRAK, has gained approval in multiple countries and is a leading treatment option for metastatic uveal melanoma. It has now been launched in 19 countries, including nine new markets since the start of the year.
In the second quarter, Immunocore Holdings plc (NASDAQ:IMCR) generated $75.3 million in net revenue from KIMMTRAK, marking a 7% increase from the first quarter. Growth was largely driven by an 11% revenue increase in the US, supported by a focus on community outreach and extended therapy duration. The company estimates a 65% market share in the US with room for further expansion. Overall, Immunocore Holdings plc (NASDAQ:IMCR) achieved a solid first half in 2024, with net sales reaching $146 million—a 34% increase over the same period last year.
Immunocore Holdings plc’s (NASDAQ:IMCR) pipeline also includes promising treatments for chronic hepatitis delta and chronic hepatitis B, currently in advanced stages of development. Analysts remain optimistic about the company’s growth prospects, driven by the continued success of KIMMTRAK. The stock has received a consensus Buy rating.
9. Incyt Corporation (NASDAQ:INCY)
Number of Hedge Fund Holders: 35
Incyte Corporation (NASDAQ:INCY) is a biopharmaceutical company focused on developing innovative medicines for blood cancers and autoimmune diseases. The company’s approach includes exploring both single drugs and combinations of targeted and immunotherapy treatments, both from its own research and from collaborations with other organizations.
In Q2 2024, Incyte Corporation’s (NASDAQ:INCY) revenue rose 9% to $1.04 billion, exceeding expectations. This growth was primarily driven by the continued success of Jakafi and the strong sales of Opzelura. Opzelura’s net product revenue for the second quarter reached $122 million, marking a 52% increase vs Q2 2023.
Incyte Corporation (NASDAQ:INCY) also recently completed a $2 billion share buyback, showing strong confidence in its clinical pipeline and commercial business, while keeping a healthy balance sheet for future business opportunities. Due to stable earnings from key products and the market potential of pipeline drugs, the company has received an average rating of Moderate Buy.
8. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 44
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a global biopharmaceutical company focused on developing innovative drugs and immunotherapies for unmet medical needs. In terms of products, it focuses on two major areas: cancer and neurological disorders.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) growth is fueled by its key products, Xywav, Epidiolex, and Rylaze, which saw combined revenue growth of 15% in the second quarter of 2024. This growth along with strong execution of strategic plans enabled the company to achieve a major milestone of surpassing $1 billion in quarterly revenue.
The acquisition of GW Pharmaceuticals in 2021 has expanded the company’s portfolio to include Epidiolex, a CBD-based drug for treating seizures. Jazz Pharmaceuticals plc (NASDAQ:JAZZ) strong financial performance during Q2, 2024 coupled with growth potential has led analysts to give the stock a consensus rating of Strong Buy with an average 12-month price target of $174.38.
7. AstraZeneca PLC (NASDAQ:AZN)
Number of Hedge Fund Holders: 49
AstraZeneca PLC (NASDAQ:AZN) is a global biopharmaceutical company. It is a leader in cancer research, focusing on key areas such as tumor drivers, immuno-oncology, antibody-drug conjugates, DNA damage response, cell therapies, and epigenetics.
With a pipeline of over 200 projects and a focus on diverse therapeutic areas, AstraZeneca PLC (NASDAQ:AZN) is well-positioned for continued growth. The company has already achieved impressive results, with sales and reported earnings per share increasing by 18% and 23%, respectively, in the first half of the year. Looking ahead, AstraZeneca PLC (NASDAQ:AZN) aims to double its revenue by the end of the decade.
With its impressive growth trajectory, AstraZeneca PLC (NASDAQ:AZN) has an average Strong Buy rating. Furthermore, the company’s 12-month average price target represents a double-digit increase from its current price levels.
Here’s what Parnassus Investments said about AstraZeneca PLC (NASDAQ:AZN) in its Q2 2024 investor letter:
“AstraZeneca PLC (NASDAQ:AZN) gained after announcing robust first-quarter results and setting 2030 targets at an Investor Day that were above consensus expectations. We continue to believe that AstraZeneca’s robust pipeline and industry-leading innovation in oncology should support above-expectation revenue growth for the next several years.”
6. argenx SE (NASDAQ:ARGX)
Number of Hedge Fund Holders: 52
argenx SE (NASDAQ:ARGX) is a global immunology company developing treatments for autoimmune diseases. By partnering with leading researchers, it is translating groundbreaking discoveries into new antibody-based medicines. The company’s recent FDA approval for VYVGART Hytrulo in CIDP showcases its leadership in autoimmune therapies.
According to the Q2 2024 results, argenx SE (NASDAQ:ARGX)’s net sales rose to $477.6 million, and the company turned a profit after reporting losses a year ago. According to its current operating plans, argenx SE (NASDAQ:ARGX) has revised its cash burn outlook and now projects using less than $500 million in net cash in 2024 for expected operating costs, working capital, and capital expenditures.
With the recent FDA approval and encouraging results, analysts are bullish on this stock and have given it an average rating of Strong Buy. Here’s what TimesSquare Capital Management said about argenx SE (NASDAQ:ARGX) in its Q2 2024 investor letter:
“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. One example was Argenx SE (NASDAQ:ARGX), a biotechnology developer of antibody treatments for autoimmune disorders. This quarter the company received unrestricted approval from the FDA for its VYVGART Hytrulo to treat chronic inflammatory demyelinating polyneuropathy (CIDP). Not only did that extend argenx’s VYVGART treatment to a new indication—CIDP causes swelling and inflammation of peripheral nerves that leads to a loss of strength or sensations in arms and legs, but this new use has significantly higher pricing for argenx. That gave its shares a 9% lift this quarter.”
5. Illumina, Inc. (NASDAQ:ILMN)
Number of Hedge Fund Holders: 56
Illumina, Inc. (NASDAQ:ILMN) is a leading genomics company that provides advanced tools for analyzing DNA and RNA. Illumina, Inc. (NASDAQ:ILMN) plays a key role in advancing immunotherapy research, particularly through its next-generation sequencing (NGS) technologies. These tools help scientists study the mechanisms by which tumors evade the immune system and identify therapeutic targets that could boost immune responses against cancer.
Wall Street analysts and investors are optimistic about Illumina, Inc.’s (NASDAQ:ILMN) future, especially after the Grail spin-off in 2024 and the acquisition of Fluent Biosciences to improve its single-cell analysis and multiomics capabilities.
In Q2, Illumina exceeded expectations, achieving Core Illumina revenue of $1.1 billion and operating margins of 22.2%, supported by steady progress on its strategic goals. The stock has received a consensus rating of “Moderate Buy.”
Here’s what Patient Capital Management said about Illumina, Inc. (NASDAQ:ILMN) in its Q2 2024 investor letter:
“Illumina, Inc. (NASDAQ:ILMN) is a good example. We entered the name late last year as the company began to trade at a 5-yr low. The company is a leader in the genomic sequencing space but made an ill-advised acquisition of Grail, a blood-based multi-cancer early detection product, in 2021 for $8B dollars. Grail was an annual ~$600m drag on profitability hitting the financials at the same time that competition began to pick up and the overall demand environment began to weaken. Despite increased competition in the genome sequencing space, Illumina continues to be a leader with ~80% market share today. With the successful separation of Grail Inc. (GRAL) in June, Illumina has now returned to a pure-play sequencing company. As the company returns to historical profitability post Grail spin-off and as the demand environment normalizes post COVID, we believe you can buy a market leader in a secularly growing industry for less than a market multiple.”
4. Bristol-Myers Squibb Company (NYSE:BMY)
Number of Hedge Fund Holders: 61
Bristol Myers Squibb Company (NYSE:BMY) is a leading global biopharmaceutical company that ranks highly among the best immunotherapy stocks to buy now.
Bristol Myers Squibb Company (NYSE:BMY) reported strong second-quarter 2024 results, with revenue reaching $12.2 billion, an increase of 9% vs a year ago. The Growth Portfolio, which includes key drugs like Opdivo, Reblozyl, Camzyos, and Opdualag, drove this increase, contributing $5.6 billion.
The company achieved several regulatory milestones, including FDA approval for Breyanzi in additional indications and regulatory filings for subcutaneous nivolumab. Positive clinical trial results for cendakimab, Opdivo, Krazati, and Augtyro further highlight the company’s pipeline potential.
Bristol Myers Squibb Company (NYSE:BMY) also raised its EPS full-year guidance to between $0.60 and $0.90, reflecting a positive outlook. Based on the strong financial performance and pipeline of drugs, the stock has received an average Buy rating.
3. Amgen Inc. (NASDAQ:AMGN)
Number of Hedge Fund Holders: 69
Amgen Inc. (NASDAQ:AMGN) was amongst the pioneers in immunotherapy with the FDA approval of Blincyto in 2014. This groundbreaking drug harnesses the body’s immune system to fight leukemia. Amgen Inc. (NASDAQ:AMGN) has also collaborated with many leading pharmaceutical companies to develop cancer treatments.
Amgen Inc.’s (NASDAQ:AMGN) second-quarter results showed continued growth due to strong performances from key products. Revenue increased by 20% year-over-year to $8.4 billion, driven by double-digit sales growth for several medications, including osteoporosis treatments, anti-inflammatory drugs, and blood cancer therapies.
Investors have responded positively to Amgen Inc. (NASDAQ:AMGN)’s performance, with the stock gaining 18% over the past six months. Its diverse product portfolio, consistent dividend payouts, and strong financial position make Amgen Inc. (NASDAQ:AMGN) one of the best immunotherapy stocks to buy now.
Here’s what PGIM Jennison Health Sciences Fund said about Amgen Inc. (NASDAQ:AMGN) in its Q2 2024 investor letter:
“Amgen Inc. (NASDAQ:AMGN) is a large cap global biotech company with a diverse portfolio of marketed and pipeline products. Amgen’s discovery pipeline had led the company to broaden its focus from oncology, immunology, and renal disease to include musculoskeletal, cardiovascular, and neurologic conditions. In addition, Amgen has turned its expertise in antibody manufacturing into a leading position in the development of biosimilars of competitor drugs. Most recently, Amgen shares advanced in 2Q following its announcement that its novel injectable GLP-1 agonist / GIPR antagonist, MariTide, for obesity showed promising interim Phase 2 data and has shown enough promise to warrant advancement into pivotal trials as soon as late 2024. While Eli Lilly and Novo Nordisk will remain the market leaders in the diabetes / obesity space, we think there is room for Amgen to carve out a meaningful share of the market with its antibody-peptide conjugate approach that could enable monthly or better dosing for MariTide.”
2. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 84
Pfizer Inc. (NYSE:PFE) is a global pharmaceutical company known for its innovative medicines in areas like immunology, oncology, cardiology, and more. Immunotherapy is one of the main areas of interest within Pfizer Oncology, especially after the recent clinical successes of cancer immunotherapy.
After acquiring Seagen for $43 billion in 2023, Pfizer Inc. (NYSE:PFE) plans to develop eight potential blockbuster cancer treatments by 2030. Seagen’s antibody-drug conjugates, which target cancers like bladder cancer, are key to this strategy.
Alongside this strategic focus on oncology, Pfizer Inc. (NYSE:PFE) is also prioritizing cost savings through a manufacturing optimization program aimed at boosting efficiency and achieving $1.5 billion in savings by the end of 2027. The stock has received an average rating of Moderate Buy, making it one of the best immunotherapy stocks to buy now.
Here’s what Parnassus Investments said about Pfizer Inc. (NYSE:PFE) in its Q1 2024 investor letter:
“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”
1. Merck & Co., Inc. (NYSE:MRK)
Number of Hedge Fund Holders: 96
Merck & Co., Inc. (NYSE:MRK) is a leading global healthcare company that produces medicines for a variety of medical conditions, including cancer, infections, and chronic diseases. It is one of the leading companies providing immunotherapy drugs for cancer.
Recently, the FDA gave approval for KEYTRUDA, the company’s immunotherapy drug, along with carboplatin and paclitaxel for the treatment of primary advanced or recurrent endometrial carcinoma. Earlier, the FDA approved the use of KEYTRUDA for resectable non-small cell lung cancer in combination with other therapies.
Merck & Co., Inc. (NYSE:MRK) reported strong second-quarter results, with total sales increasing 7% to $16.1 billion. Meanwhile, KEYTRUDA saw sales grow by 16%. The company also plans to invest $16 billion in manufacturing and other projects between 2024 and 2028. This investment will support growth in oncology, vaccines, and animal health, fueled by a strong pipeline of new products. The stock has received an average rating of Strong Buy from analysts.
Here’s what Oakmark Equity and Income Fund said about Merck & Co., Inc. (NYSE:MRK) in its Q3 2024 investor letter:
“Merck & Co., Inc. (NYSE:MRK) is a global pharmaceutical firm with leading oncology, vaccine and animal health franchises. Premier products in Merck’s portfolio include Keytruda, Gardasil, Winrevair and Bravecto. Outsized contributor Keytruda is an immuno-oncology drug that treats several cancers and tumors. Keytruda is an astounding clinical and commercial success that is on track to become one of the best-selling prescription drugs to date. Investor angst surrounding Keytruda’s pending U.S. patent expiration in 2028 presented a chance to buy shares at a discounted valuation. We believe opportunities to extend Keytruda’s duration through life cycle management are underappreciated. More importantly, discounted cash flows from products already on market cover today’s entire stock price, meaning there is minimal value ascribed to a promising pipeline with strong sales potential. We believe Merck is led by a capable management team that looks to reinvest these cash flows in an accretive manner.”
Overall, Merck & Co., Inc. (NYSE:MRK) ranks first among the 10 best immunotherapy stocks to buy now. While we acknowledge the potential of immunotherapy companies, 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.
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