Is GSK plc (GSK) The Best Immunology Stock To Buy Now?

We recently published a list of 10 Best Immunology Stocks To Buy Now. In this article, we are going to take a look at where GSK plc (NYSE:GSK) stands against other 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).

Is GSK plc (GSK) The Best Immunology Stock To Buy Now?

A doctor and a patient discussing a therapy plan that includes pharmaceutical products.

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.

Overall, GSK ranks 6th on our list of best immunology stocks to buy now. While we acknowledge the potential of GSK as an investment, 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 GSK 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. This article is originally published at Insider Monkey.