In this article, we will be taking a look at the 10 best cancer stocks to invest in for long term gains.
Surging Cancer Cases and Costs Drive Growth in the Global Oncology Market
After cardiovascular disease, cancer is the second most common cause of mortality worldwide. In January 2023, the American Cancer Society released figures indicating that by the end of 2023 alone, there would be approximately 1,958,310 cancer patients in the United States. Compared to 2010, this is a 28% increase. In the United States, it was anticipated that over 600,000 people would die from cancer in 2024, and over 2 million new cases would be diagnosed. Cancer treatment expenses are rising in tandem with the growing number of cancer sufferers. In 2020, cancer treatment in the United States cost about $200 billion, but by 2030, the total cost is expected to surpass $245 billion.
Over the past 20 years, global funding for cancer research has increased dramatically, according to the “Oncology Pharmaceuticals Market 2024” report. Between 2017 and 2022, the FDA authorized 161 new cancer medicines, demonstrating the rapid advancement of cancer treatment. According to these figures, oncology is among the most extensive fields within the field of biological sciences. From diagnosis to therapy, the whole cancer care process is covered by the oncology industry.
Global biotech and pharmaceutical businesses are always working to create more potent cancer treatments. Fortune Business Insights predicts that the scope of this undertaking will only grow shortly. In 2023, the global market for cancer medications was estimated to be worth $201.75 billion. It is projected to increase from $220.80 billion in 2024 to $518.25 billion by 2032 at a compound annual growth rate (CAGR) of 11.3%.
The development of tailored immunotherapies for cancer treatment and the rising incidence of cancer worldwide are some of the main reasons propelling the market for oncology medications. Investing in businesses related to oncology is a profitable venture due to this growth rate. The global market for oncology medications is dominated by North America. In 2023, its market share was 45.92%.
Precision Oncology and AI Revolutionize Cancer Treatment and Diagnostics
The market for precision oncology exhibits comparable patterns. Precision oncology, according to the National Institutes of Health (NIH), is a type of treatment in which doctors select therapies while taking into account each patient’s unique tumor’s DNA signature. In 2024, the global precision oncology market was estimated to be worth $115.8 billion, according to data from Grand View Research. A compound annual growth rate (CAGR) of 8.05% is projected between 2025 and 2030. The rising need for diagnostic products, technical advancements, avoiding specific medication resistance, and the growing reduction of adverse effects of cancer treatments are all factors contributing to this growth.
AI usage is rapidly growing in the field of cancer. A study by Mordor Intelligence projects that the size of the AI in the cancer industry will be approximately $1.98 billion in 2025 and will grow to approximately $9.04 billion by 2030. This represents growth from 2025 to 2030 at a CAGR of 35.51%.
AI’s growing use in the diagnosis, analysis, and treatment of complicated oncology datasets is simplifying the process and lessening the strain on medical staff and hospital infrastructure. Although North America is the largest market for AI in oncology, the Asia-Pacific area is the one with the quickest rate of growth. Given this, we will take a look at some of the best cancer stocks for long term gains.
A scientist in a lab researching the biology of a cancer cell.
Our Methodology
In our methodology, we first filtered cancer stocks based on their 5-year average returns. From this pool, we identified the top 10 stocks with the highest number of hedge fund holders as of Q4 2024, according to the Insider Monkey database. In cases where multiple stocks had the same number of hedge fund holders, we used their 5-year total returns as a tiebreaker, ranking the stock with the higher return above the others.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 10 best cancer stocks to invest in for long term gains.
10. Summit Therapeutics Inc. (NASDAQ:SMMT)
Number of Hedge Fund Holders: 25
Total 5-Year Return: 745.45%
Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company focused on developing innovative drugs for cancer and infectious diseases. Its lead candidate, Ivonescimab, is a bispecific antibody targeting non-small cell lung cancer.
Summit Therapeutics Inc. (NASDAQ:SMMT) ended Q1 2025 with $361.3 million in cash and short-term investments, down from $412.3 million at year-end 2024. This cash position still provides a strong runway for ongoing trials. Its R&D expenses rose to $51.2 million (up from $30.9 million), reflecting accelerated clinical activity, especially for Ivonescimab. G&A expenses increased to $15.6 million as the company expanded its team and commercialization efforts. The net loss widened to $62.9 million or $ 0.09 per share, typical for a biotech scaling late-stage development.
Ivonescimab continues to drive clinical momentum and remains a key focus among the best cancer stocks. In China, it achieved regulatory approval for a second NSCLC indication based on strong results from the HARMONi-6 and HARMONi-2 Phase III trials. The drug showed statistically significant PFS benefits and a promising trend toward improved overall survival. Globally, enrollment is underway in pivotal trials like HARMONi-3 and HARMONi-7.
Summit Therapeutics Inc. (NASDAQ:SMMT) expanded its research footprint through collaborations with MD Anderson (targeting cutaneous squamous cell carcinoma and glioblastoma) and Pfizer, with upcoming trials combining ivonescimab with antibody-drug conjugates. The company also appointed oncology veteran Robert LaCaze as Chief Commercial Officer to lead its commercialization strategy.
9. Halozyme Therapeutics, Inc. (NASDAQ:HALO)
Number of Hedge Fund Holders: 25
Total 5-Year Return: 163.76%
Halozyme Therapeutics, Inc. (NASDAQ:HALO) is a biotechnology company known for its ENHANZE drug delivery platform, which uses a recombinant human enzyme to temporarily break down hyaluronan in the body. This enables intravenous drugs to be delivered subcutaneously, making treatments faster and more convenient. The company partners with major pharmaceutical firms like Roche, Johnson & Johnson, and Amgen, generating revenue through licensing fees, royalties, and product sales, including its own drug Hylenex.
Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported strong financial performance in 2024, with total revenue reaching over $1 billion, up 22% year-over-year. Key contributors included royalty revenue of $571 million (+27%), net income of $444 million (+58%), and adjusted EBITDA of $632 million (+48%). Non-GAAP EPS rose 53% to $4.23, and free cash flow came in at $468 million, representing a 74% EBITDA conversion. The company ended the year with $596 million in cash and a net debt of $929 million, resulting in a net leverage ratio of 1.3x.
The corporation’s revenue growth was primarily fueled by increased royalties from subcutaneous formulations of partner drugs such as DARZALEX SC, Phesgo, and VYVGART Hytrulo. Halozyme Therapeutics, Inc. (NASDAQ:HALO)’s scalable business model enabled most of this revenue to flow through to earnings, which resulted in strong profitability and free cash flow. Shareholder returns were also supported by $250 million in share repurchases during the year.
Challenges include pending U.S. patent reissue for ENHANZE, short-term royalty declines in Q1 2025 due to contractual resets and seasonality, and delayed FDA approval of amivantamab SC. However, newly approved drugs like OCREVUS, Zunovo, TECENTRIQ Hybreza, and OPDIVO Qvantig are expected to drive meaningful growth starting in 2026. Strategic discussions for new ENHANZE deals and an auto-injector partnership could further boost long-term revenue potential.
8. Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Number of Hedge Fund Holders: 29
Total 5-Year Return: 691.21%
Celldex Therapeutics, Inc. (NASDAQ:CLDX) stands eighth on our list of the best cancer stocks. It is a biopharmaceutical company focused on developing innovative antibody-based therapies for cancer and inflammatory diseases. It creates monoclonal and bispecific antibodies to boost the immune system’s response.
Celldex Therapeutics, Inc. (NASDAQ:CLDX) is advancing its lead candidate, barzolvolimab, which is a first-in-class humanized monoclonal antibody targeting KIT, aimed at treating mast cell-driven disorders like chronic urticaria and eosinophilic esophagitis (EoE). Barzolvolimab is currently in Phase 3 trials for chronic spontaneous urticaria (CSU), with Phase 3 trials for chronic inducible urticaria (CIndU) expected in 2025. It’s also in Phase 2 for EoE, prurigo nodularis (PN), and atopic dermatitis (AD). Another pipeline asset, CDX-622, a bispecific antibody targeting SCF and TSLP, is in Phase 1 for inflammatory conditions. While the company is currently focused on inflammation, its antibody platform still holds oncology potential.
Financially, Celldex Therapeutics, Inc. (NASDAQ:CLDX) reported $7 million in full-year 2024 revenue, flat year-over-year, with Q4 revenue at $1.2 million, down from $4.1 million due to fewer services provided to Rockefeller University. Their R&D expenses rose to $163.6 million in 2024, which reflected deeper investment in clinical programs. The net loss was $157.9 million, which was up from $141.4 million in 2023, consistent with late-stage biotech spending trends.
Celldex Therapeutics, Inc. (NASDAQ:CLDX) also maintains a strong balance sheet with $725.3 million in cash and securities as of December 31, 2024—enough to fund operations through 2027. There is no reported debt, and Q4 cash burn was $32.5 million.
The company’s recent developments include the launch of the Phase 3 CIndU trial, pipeline expansion into atopic dermatitis, and the first-in-human trial for CDX-622.
7. MannKind Corporation (NASDAQ:MNKD)
Number of Hedge Fund Holders: 29
Total 5-Year Return: 240.44%
MannKind Corporation (NASDAQ:MNKD) is a biopharmaceutical company focused on innovative inhaled therapies for diseases like diabetes and cancer. In oncology, its lead candidate, MKC1106-MT, targets advanced melanoma using a DNA-based immunotherapy designed to activate T-cells against tumor-specific antigens. The treatment is administered through intranodal injection and has shown promising safety and early clinical response in Phase 1 and ongoing Phase 2 trials for metastatic melanoma.
In Q4 2024, MannKind Corporation (NASDAQ:MNKD) recorded record revenues of $77 million, which is up 31% from the same quarter the year before. Full-year revenues were $286 million, up 43% from the same period the year before. By lowering the principal amount of its debt by $236 million in 2024 and finishing the year with a healthy cash position of $203 million, the company showed excellent financial management. With Q4 revenue of $23 million and full-year revenue of $82 million, the endocrine business unit reported record profits.
Investors are attracted to MannKind Corporation (NASDAQ:MNKD) for its diversified pipeline spanning diabetes, oncology, and orphan lung diseases, with multiple catalysts ahead, including pediatric Afrezza approval and late-stage clinical milestones. The company’s strong financial discipline, evidenced by significant debt reduction and cash reserves, supports its ability to fund growth without dilution.
6. Krystal Biotech, Inc. (NASDAQ:KRYS)
Number of Hedge Fund Holders: 30
Total 5-Year Return: 144.11%
Krystal Biotech, Inc. (NASDAQ:KRYS) is a commercial-stage gene therapy company using a proprietary, redosable HSV-1 vector platform to develop treatments for genetic diseases and cancer. The company saw a breakout year in 2024, generating $290.5 million in revenue (up 473% year-over-year), which was driven by the successful U.S. launch of VYJUVEK for dystrophic epidermolysis bullosa (DEB).
High reimbursement rates, strong patient compliance (85%), and gross margins of 95% contributed to $89.2 million in full-year net income. With $749.6 million in cash and investments, the company has transitioned from an R&D-focused biotech to a profitable commercial company.
In oncology, Krystal Biotech, Inc. (NASDAQ:KRYS)’s lead candidate KB707 targets solid tumors through the delivery of immune-stimulating cytokines IL-12 and IL-2. Administered intratumorally or via inhalation, KB707 has shown a 27% objective response rate and 73% disease control rate in early-stage trials for non-small cell lung cancer (NSCLC). Both forms have received FDA Fast Track Designation.
Krystal Biotech, Inc. (NASDAQ:KRYS) is also expanding its pipeline with KB407 (Cystic Fibrosis), KB408 (Alpha-1 Antitrypsin Deficiency), and dermatological and aesthetic programs like KB105 and KB301, with key clinical milestones expected throughout 2025.
5. TG Therapeutics, Inc. (NASDAQ:TGTX)
Number of Hedge Fund Holders: 36
Total 5-Year Return: 86.96%
TG Therapeutics, Inc. (NASDAQ:TGTX) is a biopharmaceutical company focused on developing and commercializing innovative treatments for B-cell malignancies and autoimmune diseases. Its portfolio includes FDA-approved oral drugs and monoclonal antibodies targeting cancers like chronic lymphocytic leukemia (CLL), marginal zone lymphoma (MZL), follicular lymphoma (FL), and autoimmune conditions such as multiple sclerosis (MS).
H.C. Wainwright analyst Edward White reaffirmed his Buy recommendation on the stock on March 4, citing a price objective of $55. The analyst emphasized that TG Therapeutics, Inc. (NASDAQ:TGTX)’s solid financial results and bright future are the main reasons he maintained the rating. Strong Briumvi sales drove the company’s fourth-quarter 2024 earnings, which exceeded GAAP and non-GAAP EPS projections. Additionally, the company’s revenue increased by 146% year over year to $108.18 million. The positive outlook for 2025, which anticipates significant growth in revenue and earnings, also gives Analyst White hope. With a 26.3% increase so far this year, the company is among the best cancer stocks to invest in for long-term gains.
ClearBridge Small Cap Growth Strategy stated the following regarding TG Therapeutics, Inc. (NASDAQ:TGTX) in its Q4 2024 investor letter:
“2024 proved a particularly active year for new idea generation: we added 23 new investments while exiting 29 due to a variety of considerations, including acquisitions, market capitalization constraints, and our assessment of forward return potential. While many of the new investments we made during the year are of relatively modest size, we will continue to build these positions over time, provided company execution and end market prospects remain intact. In the fourth quarter, we initiated five new investments: Oscar Health, TG Therapeutics, Inc. (NASDAQ:TGTX), Clearwater Analytics, Fluor, and Modine.
TG Therapeutics is a commercial-stage biotechnology company focused on multiple sclerosis (MS), a significant chronic disease end market. Its lead product, Briumvi, has the potential to grow its market share significantly within the largest drug class in the $8 billion MS market.”
4. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
Number of Hedge Fund Holders: 37
Total 5-Year Return: 457.44%
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a biopharmaceutical company developing innovative peptide-based therapies for cancers and inflammatory diseases. Its lead cancer candidate, Rusfertide, is a synthetic peptide mimicking hepcidin to regulate iron metabolism. Currently in Phase 3 trials for polycythemia vera (PV), it aims to better control hematocrit levels with fewer side effects than standard treatments like phlebotomy.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) has secured an upfront payment of $300 million and milestone payments of up to $630 million through strategic collaborations, including a global deal with Takeda Pharmaceutical. The company and Johnson & Johnson also work together on JNJ-211, an oral IL-23 receptor antagonist.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX)’s good financial situation is demonstrated by the fact that as of September 30, 2024, its cash, cash equivalents, and marketable securities reached $583.3 million, up from $341.6 million at the end of 2023 which is an encouraging sign for those tracking the best cancer stocks. Protagonist Therapeutics, Inc. (NASDAQ:PTGX) reported a net loss of $33.2 million in the third quarter of 2024, which was marginally better than the previous year’s quarterly loss. The company also reported $4.7 million in revenue from licenses and partnerships. However, a $300 million upfront payment from its agreement with Takeda Pharmaceutical in the first nine months of 2024 led to a $143.5 million net profit, which was a significant shift.
This partnership and Protagonist Therapeutics, Inc. (NASDAQ:PTGX)’s expanding pipeline point to strong growth potential. Important future benchmarks are top-line results for JNJ-2113 Phase 3 studies in psoriasis by Q4 2024 and Phase 2b outcomes in ulcerative colitis by Q1 2025. The results of Rusfertide Phase 3 in polycythemia vera and the nomination of a development candidate for an oral IL-17 peptide antagonist are also expected in early 2025.
3. argenx SE (NASDAQ:ARGX)
Number of Hedge Fund Holders: 47
Total 5-Year Return: 333.46%
The third-ranking stock on our list of the best cancer stocks is argenx SE (NASDAQ:ARGX). It is a global biopharma company specializing in antibody-based therapies for autoimmune diseases and cancer. Its proprietary SIMPLE Antibody platform enables the development of highly effective, differentiated antibodies. The company’s lead product, VYVGART, is an FcRn antagonist and targets the neonatal Fc receptor to reduce harmful antibodies and is approved for conditions like myasthenia gravis and CIDP.
argenx SE (NASDAQ:ARGX) reported $737 million in product net sales for the fourth quarter of 2024 and $2.2 billion for the entire year. Its net profit was $774 million in Q4 and $833 million in 2024, while total operating income was $761 million in Q4 and $2.3 billion for the year. The business had a healthy $3.4 billion cash position after the year.
A 98% year-over-year increase in product net sales allowed argenx SE (NASDAQ:ARGX) to reach over 10,000 patients worldwide across three approved indications. VYVGART, its flagship medication, is being widely used in the treatment of chronic inflammatory demyelinating polyneuropathy (CIDP) and has significantly impacted the therapy of generalized myasthenia gravis (gMG).
With ambitious targets for the future, the corporation is moving forward with its Vision 2030 strategy: treating 50,000 patients, obtaining 10 labeled indications, and advancing five pipeline prospects to Phase 3. With 20 ongoing clinical trials, including 10 Phase 3 and 10 Phase 2 investigations, the company is well-positioned for long-term success.
With anticipated R&D and SG&A expenditures of $2.5 billion, argenx SE (NASDAQ:ARGX) anticipates 2025 to be its first profitable year, demonstrating its dedication to innovation. With a favorable CHMP recommendation for the VYVGART pre-filled syringe in the EU and an FDA decision anticipated by April 10, 2025, the regulatory process is still ongoing and might increase treatment accessibility and market reach.
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.”
1. Insmed Incorporated (NASDAQ:INSM)
Number of Hedge Fund Holders: 72
Total 5-Year Return: 198.95%
Insmed Incorporated (NASDAQ:INSM) tops our list for being one of the best cancer stocks. It is a biopharmaceutical company focused on developing and marketing treatments for serious and rare diseases, including cancer. It generates revenue through global drug sales and licensing. In oncology, the company is developing rhIGFBP-3, a protein that may enhance chemotherapy effectiveness in breast cancer, aiming to improve treatment outcomes for patients with high unmet medical needs.
In Q4 2024, Insmed Incorporated (NASDAQ:INSM)’s total revenue rose 24.8% year-over-year to $104.4 million, bringing full-year 2024 revenue to $363.7 million, a 19.2% increase. This growth was primarily driven by the continued strong uptake of ARIKAYCE, especially in Japan (up 33.4%) and Europe/Rest of World (up 38.8%), supported by successful market expansion and increasing adoption for treating refractory MAC lung disease. In the U.S., ARIKAYCE revenue grew 13.7% to $254.8 million.
Insmed Incorporated (NASDAQ:INSM) reported a widened net loss of $ 235.5 million in Q4 2024, or $1.32 per share, compared to $186.1 million in Q4 2023. The full-year net loss deepened to $913.8 million, or $5.57 per share, from $749.6 million in 2023. R&D expenses rose to $598.4 million due to increased investment in late-stage programs and launch readiness. SG&A expenses also increased significantly to $461.1 million, reflecting commercial scale-up ahead of the brensocatib launch.
Brensocatib received FDA Priority Review with a PDUFA date of August 12, 2025, and a potential U.S. launch in Q3 2025. The pipeline remains active, with multiple late-stage readouts anticipated in 2025–2026, including label expansion for ARIKAYCE and trials for TPIP in PAH. Additionally, Insmed Incorporated (NASDAQ:INSM) is expanding into gene therapy, with an IND cleared for its DMD program and progress reported in ALS and Stargardt disease.
Overall, INSM ranks first among the 10 best cancer stocks to invest in for long term gains. While we acknowledge the potential of cancer companies, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than INSM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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