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 SpringWorks Therapeutics, Inc. (NASDAQ:SWTX) 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 closeup of a scientist in a lab coat, mixing two liquids for a compound to treat rare diseases.
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.
Overall, SWTX ranks 8th on our list of best immunology stocks to buy now. While we acknowledge the potential of SWTX 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 SWTX 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.
