Oncology Stocks To Watch Through The Second Half Of 2019

 | Aug 14, 2019 01:48AM ET

The oncology industry is a massive and growing one. In fact, with estimates suggesting that oncology stocks that represent the largest opportunities ahead.

h2 Exelixis (NASDAQ: EXEL): A Blockbuster Drug With Strong Potential Ahead/h2

Exelixis Inc (NASDAQ:EXEL) is no newcomer to the oncology scene, in fact, the company won its first approval back in 2012 with Cometriq. The company’s treatments act by inhibiting the production of enzymes that cause cancer tumors to grow. This approach has proven to be effective time and time again with multiple FDA approvals under the company’s belt. Any FDA approval can prove to be a big win. So, the 2012 approval of Cometriq was great news. However, the drug was approved for the treatment of a rare form of thyroid cancer, and didn’t yield a blockbuster opportunity. Nonetheless, the drug does add to the underlying opportunity here. In 2014, the company won FDA approval with Roche for Cotellic in combination with Zelboraf in treating advanced melanoma. In 2016, the approval was followed up with Cabometyx earning the FDA greenlight as a treatment for advanced renal cell carcinoma, the most common form of kidney cancer. However, it wasn’t until 2017 that the treatment was approved as a first-line option for advanced RCC. This was the biggest win as of yet, leading to more than 50 phase 1 or phase 2 studies underway around the world that feature the drug . While Cabometyx is already becoming a blockbuster treatment, with all of the clinical activity around the drug, there is plenty of opportunity ahead. Investors can look forward to the publication of several data readouts, as well as new drug applications and potential regulatory approvals down the road. As a result, this is a stock that should be at the top of your watchlist!

h2 Ziopharm Oncology (NASDAQ: ZIOP): Several Ongoing Studies Will Open The Door To Opportunity/h2

Ziopharm Oncology is working to provide solutions for some of the most difficult-to-treat types of cancer out there. However, the company’s method of action is a bit different from what we see from Exelixis and other companies that focus on more traditional cancer therapies.

Instead of starving cancer tumors of the enzymes needed for growth, ZIOPHARM Oncology Inc (NASDAQ:ZIOP) is focused on harnessing the power of the body’s own immune system in an approach that has been dubbed immuno-oncology.

This approach is interesting, as many believe that immuno-oncology will prove to be more effective than currently approved treatments, and it is thought that by supporting the body’s own immune system, there is the potential to minimize the risks of toxicity and adverse events.

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Essentially, the company’s drug candidates support the immune system through controlled gene expression and innovative cell engineering technologies.

Ziopharm Oncology’s focus is on two clinical candidates, both with several catalystic events ahead. The first, known as AD-RTS-hIL-12 , is the subject of one preclinical development program, three Phase 1 development programs, and one Phase 2 development program. These programs range across a variety of oncology-indications, with the clinical studies showing promise.

The company is also working on a variety of Car-T and TCR therapies. These therapies are involved in two preclinical and one Phase 1 development program. They are also at the center of partnerships with the National Cancer Institute and MD Anderson Cancer Institute.

Considering the multiple clinical trials underway and early promise suggested by previously announced data, there are several catalysts ahead that have the potential to yield impressive gains. So, keep a close eye on this stock.

h2 Hemispherx Biopharma (NYSEAMERICAN: HEB): Ampligen Has Explosive Potential/h2

Hemispherx BioPharma Inc (NYSE:HEB) is also working on harnessing the body’s own immune system as a way to fight various forms of cancer. The company’s flagship product is known as Ampligen, and it’s one that has already won approval in the world of immunology for the treatment of myalgic encephalomyelitis/chronic fatigue syndrome (ME/CFS) in Argentina. In fact, it is the first treatment in the world to be approved for this indication. Nonetheless, Ampligen is not a one-trick pony. The treatment is checkpoint inhibitors . At the end of the day, Hemispherx is a company that comes with incredible potential. Its candidates are being tested across a diverse line of difficult-to-treat cancers. With multiple clinical studies and an active search for a commercialization partner, there are several catalysts that investors have to look forward to ahead.

h2 Incyte (NASDAQ:INCY) Corporation (NASDAQ: INCY): On Its Way To Leadership/h2

Incyte (NASDAQ:INCY) Corporation is a relatively large company. With a market cap of just over $18 billion, it’s no Abbvie (NYSE: ABBV – Market Cap – Nearly $110 billion), but it has the potential to become one.

The company is focused in the world of immuno-oncology. Like Ziopharm Oncology and Hemispherx Biopharma, the company’s candidates enlist and enable the body’s own immune system to battle cancer, a method of action that Incyte (NASDAQ:INCY) has shown time and time again is effective.

The company’s claim to fame is a product known as Jakafi. The company’s first commercial product, Jakafi is approved in the United States for patients with intermediate or high-risk myelofibrosis and for patients with polycythemia vera who have had an inadequate response to or are intolerant to hydroxyurea. While Jakafi is already driving significant revenue, the company is working its way toward label expansions that could compound the value of the drug.

In fact, Jakafi is at the center of 12 clinical programs at Incyte (NASDAQ:INCY). Moreover, the company’s pipeline shows that Jakafi isn’t the only trick up its sleeve. In fact, the pipeline at Incyte includes 19 clinical candidates that are designed around 17 molecular targets.

With Jakafi sales likely to climb and several ongoing clinical programs, Incyte (NASDAQ:INCY) is likely to have plenty of news to share ahead. So, keep your eyes peeled.

h2 Bluebird Bio (NASDAQ: BLUE): Commercialization And Regulatory Catalysts Ahead/h2

Bluebird bio Inc (NASDAQ:BLUE) is an up and coming biotechnology company just starting to move into commercialization phases. Recently, the company announced preclinical and clinical development programs in its pipeline . With coming data readouts, commercialization announcements, and regulatory updates likely ahead, Bluebird Bio is a must-watch stock!

h2 Final Thoughts/h2

The field of oncology is one that represents tremendous opportunities for investors. With several catalysts in the near-term calendar expected from the companies above, these are stocks that are well worth your attention.

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