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Investing in Oncology: 3 Cancer Stocks With Promising Pipelines
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An updated edition of the July 21, 2025, article.
The global cancer treatment market is entering a pivotal era, characterized by increasing cancer prevalence and rapid advancements in therapeutics. As per the American Cancer Society, the United States alone is expected to see 2,041,910 new cancer cases and 618,120 cancer-related deaths in 2025. An aging population, lifestyle-related risk factors and better diagnostic capabilities are all fueling higher incidence rates worldwide, pushing healthcare systems toward significantly higher oncology spending.
At the same time, scientific progress has reshaped how cancer is treated. Over the past two decades, advances in immunotherapies, targeted medicines and personalized vaccines have expanded options beyond traditional chemotherapy and radiation. Immune-based approaches—such as checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines, and oncolytic viruses—train the body’s own defense system to attack tumors. Targeted therapies offer precision by zeroing in on genetic mutations that drive tumor growth, reducing collateral damage to healthy tissue. Meanwhile, personalized cancer vaccines, tailored for a patient’s tumor profile, are emerging as one of the most exciting frontiers in precision oncology.
Despite these breakthroughs, a universal cure remains elusive. However, survival rates have steadily improved, and many patients now benefit from a better quality of life during and after treatment. These gains, coupled with the increasing demand for more effective and less toxic options, are fueling strong momentum in the oncology market.
Pharmaceutical companies are responding aggressively. Industry leaders — including Novartis, AstraZeneca, J&J, Pfizer (PFE - Free Report) , AbbVie (ABBV - Free Report) , Merck, Bristol Myers Squibb (BMY - Free Report) and Eli Lilly (LLY - Free Report) — are heavily investing in next-generation platforms like antibody-drug conjugates (ADCs) and advanced immuno-oncology agents. Meanwhile, smaller biotech firms continue to serve as critical innovation hubs, often pioneering high-risk, high-reward therapies. This dynamic has spurred a surge in partnerships, licensing deals and acquisitions, as larger players seek to expand their pipelines with novel candidates that hold potential to outperform today’s standard of care. These factors highlight the huge potential for cancer-focused companies.
With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you’re looking to align your portfolio with this rising trend, now might be the time to consider stocks like Relay Therapeutics (RLAY - Free Report) , Pyxis Oncology (PYXS - Free Report) and Allogene Therapeutics (ALLO - Free Report) .
Explore 30 cutting-edge investment themes with Zacks Thematic Screensand uncover your next big opportunity.
3 Cancer Stocks in Focus
Relay Therapeutics initiated a pivotal phase III study called ReDiscover-2 on RLY-2608, its lead investigational candidate, in combination with AstraZeneca’s Faslodex for second-line PI3Kα-mutated, HR+/HER2- advanced breast cancer, in the second quarter. Relay is developing RLY-2608, a mutant-selective PI3Kα inhibitor, as a novel medicine for CDK4/6-experienced patients with PI3Kα mutations, where there is a large unmet medical need. In clinical studies, RLY-2608 has shown the potential benefit in improving both the tolerability profile and progression-free survival compared to standard-of-care drugs in this setting.
The company is also making progress in its development plans for investigational triplet combinations, which it believes can allow RLY-2608 to address patients in earlier settings.
Relay Therapeutics is also rapidly progressing with the development of other front-line breast cancer regimens while planning for the development of future oral endocrine therapy combinations.
Pyxis Oncology is a cancer biotech focused on developing next-generation therapeutics to target difficult-to-treat cancers.
Pyxis’ lead pipeline candidate, micvotabart pelidotin (formerly PYX-201), is being developed in a phase I monotherapy expansion study for recurrent and metastatic head and neck squamous cell carcinoma (R/M HNSCC). Preliminary data from monotherapy expansion cohorts of the study are expected in the second half of 2025 and in 2026. In pre-clinical studies, micvotabart pelidotin’s three-pronged mechanism of action has been validated with data showing that the candidate may be eliciting immune responses in previously unresponsive tumors.
Earlier data from a phase I study showed that micvotabart pelidotin has a profound monotherapy effect on multiple tumor types with significant tumor regression. Significant clinical responses were observed in patients with R/M HNSCC. The FDA has granted Fast Track Designation to micvotabart pelidotin for the treatment of adult patients with R/M HNSCC whose disease has progressed following treatment with platinum-based chemotherapy and an anti-PD (L)1 therapy.
This Zacks Rank #2 company has also entered into a clinical trial collaboration agreement with Merck to study a combination of micvotabart pelidotin and Merck’s anti-PD-1 therapy, Keytruda (pembrolizumab), in R/M HNSCC and breast cancer indications. A phase I study has been initiated in patients with R/M HNSCC and other advanced solid tumors, with preliminary data expected in the second half of 2025.
Allogene Therapeutics is focused on developing allogeneic CAR T therapies for treating cancer, especially hematologic indications with high unmet needs.
This Zacks Rank #2 company has multiple pipeline candidates in the clinical stage of development, including CAR T cell product candidates — cemacabtagene ansegedleucel (cema-cel or formerly ALLO-501A) and ALLO-316 for cancer indications.
Lead candidate, cema-cel, is being developed as a frontline treatment for patients with large B-cell lymphoma (LBCL). In this regard, the company has initiated the pivotal phase II ALPHA3 study to evaluate cema-cel in patients with first-line LBCL.
ALLO-316, the company’s first CAR T candidate for solid tumors, is being evaluated in the TRAVERSE study in adults with advanced or metastatic renal cell carcinoma. Data from the study has shown that the therapy-induced early anti-tumor activity with deepening responses over time, especially in heavily pre-treated patients with high CD70 expression. Allogene is currently exploring partnership opportunities to advance the development of this drug.
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Investing in Oncology: 3 Cancer Stocks With Promising Pipelines
An updated edition of the July 21, 2025, article.
The global cancer treatment market is entering a pivotal era, characterized by increasing cancer prevalence and rapid advancements in therapeutics. As per the American Cancer Society, the United States alone is expected to see 2,041,910 new cancer cases and 618,120 cancer-related deaths in 2025. An aging population, lifestyle-related risk factors and better diagnostic capabilities are all fueling higher incidence rates worldwide, pushing healthcare systems toward significantly higher oncology spending.
At the same time, scientific progress has reshaped how cancer is treated. Over the past two decades, advances in immunotherapies, targeted medicines and personalized vaccines have expanded options beyond traditional chemotherapy and radiation. Immune-based approaches—such as checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines, and oncolytic viruses—train the body’s own defense system to attack tumors. Targeted therapies offer precision by zeroing in on genetic mutations that drive tumor growth, reducing collateral damage to healthy tissue. Meanwhile, personalized cancer vaccines, tailored for a patient’s tumor profile, are emerging as one of the most exciting frontiers in precision oncology.
Despite these breakthroughs, a universal cure remains elusive. However, survival rates have steadily improved, and many patients now benefit from a better quality of life during and after treatment. These gains, coupled with the increasing demand for more effective and less toxic options, are fueling strong momentum in the oncology market.
Pharmaceutical companies are responding aggressively. Industry leaders — including Novartis, AstraZeneca, J&J, Pfizer (PFE - Free Report) , AbbVie (ABBV - Free Report) , Merck, Bristol Myers Squibb (BMY - Free Report) and Eli Lilly (LLY - Free Report) — are heavily investing in next-generation platforms like antibody-drug conjugates (ADCs) and advanced immuno-oncology agents. Meanwhile, smaller biotech firms continue to serve as critical innovation hubs, often pioneering high-risk, high-reward therapies. This dynamic has spurred a surge in partnerships, licensing deals and acquisitions, as larger players seek to expand their pipelines with novel candidates that hold potential to outperform today’s standard of care. These factors highlight the huge potential for cancer-focused companies.
With our thematic screens, you can easily spot stocks tied to trends shaping the future of investing. If the cancer space appeals to you and you’re looking to align your portfolio with this rising trend, now might be the time to consider stocks like Relay Therapeutics (RLAY - Free Report) , Pyxis Oncology (PYXS - Free Report) and Allogene Therapeutics (ALLO - Free Report) .
Explore 30 cutting-edge investment themes with Zacks Thematic Screens and uncover your next big opportunity.
3 Cancer Stocks in Focus
Relay Therapeutics initiated a pivotal phase III study called ReDiscover-2 on RLY-2608, its lead investigational candidate, in combination with AstraZeneca’s Faslodex for second-line PI3Kα-mutated, HR+/HER2- advanced breast cancer, in the second quarter. Relay is developing RLY-2608, a mutant-selective PI3Kα inhibitor, as a novel medicine for CDK4/6-experienced patients with PI3Kα mutations, where there is a large unmet medical need. In clinical studies, RLY-2608 has shown the potential benefit in improving both the tolerability profile and progression-free survival compared to standard-of-care drugs in this setting.
The company is also making progress in its development plans for investigational triplet combinations, which it believes can allow RLY-2608 to address patients in earlier settings.
Relay Therapeutics is also rapidly progressing with the development of other front-line breast cancer regimens while planning for the development of future oral endocrine therapy combinations.
Relay Therapeutics has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pyxis Oncology is a cancer biotech focused on developing next-generation therapeutics to target difficult-to-treat cancers.
Pyxis’ lead pipeline candidate, micvotabart pelidotin (formerly PYX-201), is being developed in a phase I monotherapy expansion study for recurrent and metastatic head and neck squamous cell carcinoma (R/M HNSCC). Preliminary data from monotherapy expansion cohorts of the study are expected in the second half of 2025 and in 2026. In pre-clinical studies, micvotabart pelidotin’s three-pronged mechanism of action has been validated with data showing that the candidate may be eliciting immune responses in previously unresponsive tumors.
Earlier data from a phase I study showed that micvotabart pelidotin has a profound monotherapy effect on multiple tumor types with significant tumor regression. Significant clinical responses were observed in patients with R/M HNSCC. The FDA has granted Fast Track Designation to micvotabart pelidotin for the treatment of adult patients with R/M HNSCC whose disease has progressed following treatment with platinum-based chemotherapy and an anti-PD (L)1 therapy.
This Zacks Rank #2 company has also entered into a clinical trial collaboration agreement with Merck to study a combination of micvotabart pelidotin and Merck’s anti-PD-1 therapy, Keytruda (pembrolizumab), in R/M HNSCC and breast cancer indications. A phase I study has been initiated in patients with R/M HNSCC and other advanced solid tumors, with preliminary data expected in the second half of 2025.
Allogene Therapeutics is focused on developing allogeneic CAR T therapies for treating cancer, especially hematologic indications with high unmet needs.
This Zacks Rank #2 company has multiple pipeline candidates in the clinical stage of development, including CAR T cell product candidates — cemacabtagene ansegedleucel (cema-cel or formerly ALLO-501A) and ALLO-316 for cancer indications.
Lead candidate, cema-cel, is being developed as a frontline treatment for patients with large B-cell lymphoma (LBCL). In this regard, the company has initiated the pivotal phase II ALPHA3 study to evaluate cema-cel in patients with first-line LBCL.
ALLO-316, the company’s first CAR T candidate for solid tumors, is being evaluated in the TRAVERSE study in adults with advanced or metastatic renal cell carcinoma. Data from the study has shown that the therapy-induced early anti-tumor activity with deepening responses over time, especially in heavily pre-treated patients with high CD70 expression. Allogene is currently exploring partnership opportunities to advance the development of this drug.