10 Best Cancer Stocks to Invest in for Long-Term Gains

2. Merus N.V. (NASDAQ:MRUS)

Number of Hedge Fund Holders: 56

Total 5-Year Return: 148.46%

Merus N.V. (NASDAQ:MRUS) is a clinical-stage immuno-oncology company that develops antibody therapeutics in the Netherlands. BIZENGRI, the first and only treatment approved by the FDA for individuals with advanced, metastatic, or unresectable pancreatic adenocarcinoma or non-small cell lung cancer (NSCLC) that harbors a neuregulin 1 (NRG1) gene fusion, is part of its pipeline of bispecific antibody candidates.

Based on the duration of response (DOR) and overall response rate (ORR) recorded in clinical trials, this approval was given under the accelerated approval pathway. Confirmatory trials may be required to verify and describe clinical benefit before these indications can continue to be approved. Merus N.V. (NASDAQ:MRUS) has granted Partner Therapeutics an exclusive license to commercialize and generate revenue from BIZENGRI in the United States.

Physician adoption of this candidate will determine its success. The long-term viability and ongoing licensure of BIZENGRI may potentially be impacted by the need for confirmatory trials to validate the clinical benefit. Despite the fact that 2024 collaboration revenue dropped to $36.1 million from $43.9 million in 2023, the approval and subsequent commercialization of BIZENGRI established a new source of income for 2025 and beyond.

TimesSquare Capital Management U.S. Small Cap Growth Strategy stated the following regarding Merus N.V. (NASDAQ:MRUS) in its Q2 2024 investor letter:

“Our preferences among Health Care stocks are those companies providing novel therapies for unmet needs that deserve premium pricing, or specialized service providers. A new addition this quarter is Merus N.V. (NASDAQ:MRUS), a clinical-stage immune-oncology biotechnology company. Their pipeline consists of several programs targeting solid tumors with various bispecific antibodies.”