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 Incyte Corporation (NASDAQ:INCY) 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).
A small team of scientists in a lab, discovering new therapies to treat oncogenic drivers.
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.
Overall, INCY ranks 3rd on our list of best immunology stocks to buy now. While we acknowledge the potential of INCY 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 INCY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
