8 stocks shaping the next wave of Cancer treatment

The next wave of cancer treatment

Cancer treatment is becoming more precise. Instead of relying only on conventional chemotherapy, drugmakers are developing medicines that target mutations driving tumour growth, deliver radiation or cancer-killing drugs more directly to cancer cells, and help the immune system recognise an individual patient’s cancer.

Several of these approaches are reaching important milestones. Revolution Medicines has secured US approval for a targeted pancreatic-cancer treatment, Novartis has expanded the approved use of its precision-radiation therapy, and AstraZeneca has gained approval for a treatment aimed at a specific breast-cancer mutation. Meanwhile, Moderna and Merck are preparing to present detailed late-stage results for their personalised cancer vaccine.

For investors, the opportunity is not one cancer vaccine or one promising drug. It is a wider pipeline of treatments moving from clinical research towards regulatory approval and commercial use.

The eight stocks in this article offer exposure to different parts of that shift: personalised vaccines, next-generation immunotherapy, targeted medicines, precision radiation and antibody-drug conjugates. Some have established pharmaceutical businesses; others depend more heavily on a smaller number of treatments.

The key question is which companies can turn clinical progress into meaningful patient uptake and sustainable earnings — and how much of that potential is already reflected in their share prices.

1. Personalised cancer vaccines: Moderna and Merck

Moderna (MRNA) — Can a treatment made for one patient become a scalable business?

Moderna and Merck’s experimental treatment, intismeran autogene, is designed using mutations found in each patient’s tumour. Given alongside Merck’s Keytruda after melanoma surgery, it aims to help the immune system recognise remaining cancer cells.

In August, the companies reported that their Phase 3 trial met its goals for reducing the risk of cancer recurrence and distant spread. Detailed melanoma results are scheduled for 24 October at the ESMO oncology congress, alongside an early-stage pancreatic-cancer study and a presentation describing an ongoing Phase 3 lung-cancer trial. The lung-cancer presentation is a trial-design update, not a second positive Phase 3 result.

For Moderna, a successful treatment could help diversify revenue beyond respiratory vaccines. Investors will be looking at the size of the clinical benefit, safety, regulatory plans and whether individualised manufacturing can work at commercial scale. Expectations are already elevated following the stock’s sharp reaction to the initial results.

Merck & Co. (MRK) — Extending an established oncology franchise

Merck supplies Keytruda and jointly develops intismeran with Moderna. If the combination gains approval, it could add another treatment option to Merck’s cancer portfolio.

The stakes differ from Moderna’s: Merck has an established, diversified pharmaceutical business, while the vaccine could contribute to its plans for growth as Keytruda approaches future loss of exclusivity. One new treatment, however, would not by itself replace all revenue exposed to future competition.

2. Next-generation immunotherapy: Akeso

Akeso (9926 HK) — Taking a lung-cancer treatment beyond China

Akeso’s ivonescimab targets two pathways involved in tumour growth and the immune response. It is already approved for certain lung-cancer patients in China, including an additional first-line use approved in August.

Akeso therefore offers exposure to an existing commercial product as well as the possibility of wider international use. Investors can watch Chinese sales growth, results from global studies and regulatory progress outside China. Approval in one country does not guarantee approval elsewhere.

3. Targeted cancer medicines: Revolution Medicines and AstraZeneca

Revolution Medicines (RVMD) — From pancreatic-cancer approval to commercial launch

Revolution Medicines develops drugs that interfere with RAS proteins, which can drive cancer growth. Its treatment daraxonrasib received US approval in August for specified adults with metastatic pancreatic cancer.

The focus now shifts to patient access, reimbursement and initial sales. Further trials could expand the opportunity, but Revolution Medicines remains more exposed to the performance of a relatively concentrated drug portfolio than a large pharmaceutical company.

AstraZeneca (AZN) — Multiple routes to oncology growth

AstraZeneca has a broad cancer portfolio spanning targeted medicines, immunotherapy and antibody-drug conjugates. In September, the US granted accelerated approval to camizestrant, used with another medicine for a defined group of patients with breast cancer carrying an ESR1 mutation.

Its opportunity is not tied to a single trial. Investors can follow the uptake of newly approved treatments, results in additional patient groups and whether pipeline progress sustains growth across the wider oncology business.

4. Precision radiation: Novartis

Novartis (NVS) — Delivering radiation more directly to cancer cells

Novartis’s Pluvicto is a radioligand therapy. It combines a molecule that seeks out a target on prostate-cancer cells with a radioactive component intended to damage those cells.

This approach offers a different treatment theme from vaccines or conventional targeted drugs. Investors can watch whether expanded patient access translates into higher treatment volumes—and whether manufacturing capacity and specialist treatment-centre availability can keep pace with demand.

5. More precise drug delivery: Pfizer and Hansoh

Pfizer (PFE) — Building a broader cancer-treatment portfolio

Pfizer’s oncology business includes antibody-drug conjugates (ADCs), which use antibodies to deliver cancer-killing medicines to cells carrying a particular target. It also develops treatments for blood cancers.

Pfizer offers exposure to several programmes rather than one clinical outcome. The investment question is whether new indications, trial results and product launches can generate enough growth to make a meaningful difference to the wider company.

Hansoh Pharma (3692 HK) — A lung-cancer drug under regulatory review

Hansoh’s experimental ADC, risvutatug rezetecan, is being developed for small-cell lung cancer. Chinese regulators accepted its marketing application in September following a Phase 3 trial that met its overall-survival goal. Acceptance for review is not approval.

Investors can watch the regulatory decision, detailed efficacy and safety data, and progress in development outside China. A favourable outcome could create a new commercial opportunity, while a delay or setback could weigh on expectations.

What should investors watch?

These stocks sit at different points between scientific discovery and commercial success. Moderna and Merck have a positive late-stage vaccine result but still face regulatory and manufacturing hurdles. Hansoh awaits a regulatory decision. Akeso has an approved product in China, while Revolution Medicines, AstraZeneca and Novartis must translate treatment approvals and expanded uses into commercial growth.

A positive trial result, regulatory approval and a successful launch are three different milestones. Investors may want to assess the strength of the clinical evidence, eligible patient populations, competition, pricing, manufacturing costs and how much future success is already reflected in each share price.

There are important risks. Further studies may reveal smaller benefits or additional side effects; regulators may require more evidence; and a medically valuable treatment may still face reimbursement or access constraints. Smaller biotechnology stocks can be particularly sensitive to individual clinical outcomes, while larger drugmakers offer more diversified earnings but less exposure to any single breakthrough.

The next oncology opportunity is not simply about finding a promising drug. It is about understanding which companies can turn clinical progress into wider patient access and sustainable commercial growth.

Disclaimer: The companies are illustrative stock references, not investment recommendations. Their treatments address different cancers and patient groups, and their clinical results should not be compared as measures of relative effectiveness. Investors should consider valuations, concentration risk and potential clinical, regulatory and commercial setbacks.