Biotech Companies Focused on Cancer Research are Being Acquired at Massive Valuations

LOS ANGELES, Nov. 20, 2019 /PRNewswire/ -- The global biotech market will surpass $775 billion USD by 2024; according to a new research report by Global Market Insights, Inc. The industry is one of the most exciting sectors to follow, acting as a strong engine of innovation, a source of highly skilled employment, and destination for investment capital. Mentioned in today's commentary includes: Seattle Genetics (NASDAQ: SGEN), Karuna Therapeutics (NASDAQ: KRTX), Bristol-Myers Squibb (NYSE: BMY), Pfizer (NYSE: PFE), Oncolytics Biotech (NASDAQ: ONCY).

This opinion is echoed by portfolio managers who think the industry has plenty of room to run. As more useful IP is developed by some of the top players, newcomers are also making a dent, positioning themselves for further M&A's which are rising in popularity year over year. 

The biotech industry contains well known companies looking to develop the industry's top IP such as Seattle Genetics (NASDAQ: SGEN) who began 2019 with big news about its flagship Adcetris product.  

Innovative companies like Karuna Therapeutics (NASDAQ: KRTX) topped headlines recently when it announced their KarXT had met primary endpoint in Phase 2 clinical trial of acute Psychosis in patients with Schizophrenia, and the stock has more than tripled in less than 2 days since the announcement. Bristol-Myers Squibb (NYSE: BMY) recently announced they had received clearance from U.S. Federal Trade Commission for Celgene Acquisition.  

What Is the Large Scale Outlook Here?

Biotech continues to grow at a rapid pace, so it makes sense then that the industry would be attracting all kinds of new investors to both the industry giants, and small-mid cap companies alike.

Like most industries, biotech suffered losses toward the end of 2018 along with the broader stock market. However, 2019 has proven to be a very positive year for the sector as a whole with most stocks making large moves.

Ivo Staijen, manager of the HBM Global Biotechnology fund, is also feeling optimistic about the sector's prospects, pointing out the number of constituents in the Nasdaq Biotechnology index has increased sharply in recent years.

"Most investors have exposure to the large pharmaceutical giants but from a value creation perspective they should be invested in earlier-stage companies too. Biotechnology is the backbone of innovation these days," says Staijen

Others prefer to back giants like Pfizer (NYSE: PFE), whose portfolio focuses on the discovery and development of new medicines and vaccines. By focusing on science and patient experience, they have significant investments which support faster delivery of breakthrough medicines. Pzizer is also growing through M&A, a very well known move within the sector. The company announced its $11.4 billion USD plan to acquire Array BioPharma.

Start With IP

The IP that drives biotech may be one of the easy entry points for early investors to look at. Oncolytics Biotech developed tech known as Pelareorep, a non-pathogenic, proprietary treatment for cancerous tumors. It's unlike any other treatment on the market, and the company is looking to enter phase 3 testing come 2020.

Pelareorep selectively replicates in permissive cancer cells. Upon virus replication, cancer cells die, releasing additional virus particles to infect nearby cancer cells. This is a unique treatment within the sector.

The company has also begun to work with industry giant Pfizer (NYSE: PFE) to develop IP through new studies. Oncolytics Biotech (NASDAQ: ONCY) will be developing programs to evaluate the efficacy and safety in their clinical studies targeting early stage breast cancer, multiple myeloma and other various hard to target cancers.

Going In On Niche Market Segments 

Oncolytics Biotech (NASDAQ: ONCY) originally hails from Canada, but has operations in San Diego as well, and the company is listed on the TSX and NASDAQ exchanges.

If cancer biotech can reach the kind of massive revenue numbers the current data suggests, some of these newcomers may become the future giants of the industry that come to define the future of biotech, medical research and pharmaceutical IP. Along with Oncolytics, three other companies also seeking to take an active lead in this sector include:

Seattle Genetics (NASDAQ: SGEN) who generated one of the most impressive stock performances among biotechs for 2019. The Seattle based company creates and markets cancer treatment drugs and has become known as the industry leader in antibody-drug conjugates.

Alexion is a Boston based biotech company, and the maker of Soliris, a drug used to treat multiple rare disorders affecting the body. Alexion remains heavily involved in immune system research as it relates to autoimmune diseases.

Incyte is a pharmaceutical company based out of Delaware. The company focuses on drug treatments for cancer, arthritis and other diseases. Their most famous drug available to consumers is called Jakafi, which is used to treat polycythemia vera. The company began 2019 with a phase 3 trial of new medicine. The company announced that the first patient had been treated with Itacitinib as part of the trial midway through the month.

For more on Oncolytics Biotech and the broader biotech industry, view the report at USA News Group: https://usanewsgroup.com/2019/10/06/what-if-you-could-teach-your-body-to-fight-cancer/

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