In this article, we discuss the 10 best immunology stocks to invest in.
Immunology is the study of the immune system of higher organisms in relation to disease. To be more precise, immunology is the branch of biology that is concerned with the structure and function of the immune system. The subject is studied with the help of trials conducted based on laboratory techniques or immunoassays. If the immune system of a person is weak, then it could result in various diseases, such as autoimmunity, allergy and cancer. The global immunology market has exploded in the past few decades.
Vendors are deploying organic and inorganic growth strategies to compete in the market. According to a report by Fortune Business Insights, the global immunology market size is going to showcase exponential growth by reaching close to $159 billion in value by 2028. This implies a compound annual growth rate of more than 8% between 2021 and 2028. Globally, the eminent market players in the immunology market include Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV).
The growth of the immunology sector can be understood in context of a recent product. In 2021, Sandoz Canada introduced adalimumab. The drug provides high efficacy and efficiency in treating autoimmune diseases, including rheumatoid arthritis, adult Crohn’s disease, psoriatic arthritis, and adult uveitis. It has already received the required regulatory approvals across the world, indicating the enlarged market size for the product and the rising number of successful clinical trials being conducted globally.
In addition to this success story, there are several other genetic medicines and immunotherapies that are trending and proving successful at tackling genetic disorders and diseases. Investors are seeking exposure to advances in genomics and immunology and generating a significant portion of their revenue from related therapeutics and technologies. The prevalence of biosimilars has also helped the industry to reach new heights. Some estimates suggest that biosimilars will generate sales of over $3.4 billion in 2022. For example, biosimilars of Inflectra, developed by Pfizer, generated a whopping $671 million in sales this year.
The demand for allergists and immunologists is expected to go up, with an expected 72,500 new jobs filled by 2029. This represents an annual increase of more than 2% over the next few years. The COVID-19 outbreak has generated widespread economic distress and uncertainty, with many industries, markets, and businesses undergoing tremendous stress. However, the medical sciences community surpassed these challenging times and now has significant runways for growth in the immunology space.
Our Methodology
The companies that operate in the immunology sector were selected for the list. The business fundamentals and analyst ratings for the stocks are also discussed to provide readers with some additional insight for their investment decisions. Data from around 900 elite hedge funds tracked by Insider Monkey in the third quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
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Best Immunology Stocks To Invest In
10. PureTech Health plc (NASDAQ:PRTC)
Number of Hedge Fund Holders: N/A
PureTech Health plc (NASDAQ:PRTC) is a clinical-stage biotherapeutics company that discovers, develops, and commercializes medicines for inflammatory, fibrotic and immunological, intractable cancers, lymphatic and gastrointestinal, neurological and neuropsychological, and other diseases in the United States. On December 6, PureTech Health revealed that it would continue clinical trials for LYT-310, an oral cannabidiol prodrug that increases tolerability. The company plans to deliver the treatment orally in a capsule.
Just like Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), PureTech Health plc (NASDAQ:PRTC) is one of the best immunology stocks to invest in according to elite investors.
9. ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA)
Number of Hedge Fund Holders: 1
ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA) engages in antibody production and provision of related services in the United States, Canada, Europe, Australia, and internationally. On November 30, ImmunoPrecise Antibodies announced that BioStrand BV, an AI discovery subsidiary of IPA, has entered into a research collaboration and license agreement with BrianCell Therapeutics Corp. The companies will focus on silico antibody discovery to generate relevant clinical molecules for potential development.
At the end of the third quarter of 2022, 1 hedge fund in the database of Insider Monkey held stakes worth $249,000 in ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA), compared to 2 in the previous quarter worth $472,000.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in ImmunoPrecise Antibodies Ltd. (NASDAQ:IPA) with 263,300 shares worth more than $1 million.
8. Astria Therapeutics, Inc. (NASDAQ:ATXS)
Number of Hedge Fund Holders: 13
Astria Therapeutics, Inc. (NASDAQ:ATXS) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of therapeutics for rare and niche allergic, and immunological diseases in the United States. On August 4, Astria Therapeutics revealed the initiation of a Phase 1a clinical trial of STAR-0215 in healthy subjects. STAR-0215 is a monoclonal antibody inhibitor of plasma kallikrein designed to provide long-acting, effective attack prevention for hereditary angioedema (HAE), with dosing once every three months or longer.
At the end of the third quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $59.7 million in Teladoc Health, Inc. (NYSE: TDOC), compared to 9 in the previous quarter worth $10.45 million.
7. Genmab A/S (NASDAQ:GMAB)
Number of Hedge Fund Holders: 12
Genmab A/S (NASDAQ:GMAB) develops antibody therapeutics for the treatment of cancer and other diseases primarily in Denmark. On October 28, Genmab A/S announced that it has submitted a Biologics License Application to the US Food and Drug Administration for subcutaneous epcoritamab, an investigational bispecific antibody for the treatment of patients with relapsed/refractory large B-cell lymphoma after two or more lines of systemic therapy.
On November 14, William Blair analyst Matt Phipps initiated coverage of Genmab A/S (NASDAQ:GMAB) stock with a Market Perform rating without a price target, noting that the launch of the company’s partnered programs has significant longer-term potential, however, initial commercial indications are limited and additional time will be needed for its intriguing pipeline programs to take shape.
At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $125 million in Genmab A/S (NASDAQ:GMAB), compared to 6 in the preceding quarter worth $96.4 million.
Among the hedge funds being tracked by Insider Monkey, Boston-based firm Arrowstreet Capital is a leading shareholder in Genmab A/S (NASDAQ:GMAB) with 1.4 million shares worth more than $47 million.
In its Q2 2021 investor letter, Artisan Partners, an asset management firm, highlighted a few stocks and Genmab A/S (NASDAQ:GMAB) was one of them. Here is what the fund said:
“Genmab A/S (NASDAQ:GMAB) is a creator and developer of human antibody products for the treatment of life-threatening and debilitating diseases. Shares have been volatile this year amid a binding arbitration with Johnson & Johnson to decide key aspects of royalty payments related to nextgeneration multiple myeloma drug, Darzalex FASPROTM. Last quarter, we indicated share weakness in February and early March seemed to overstate the potential negative outcome, especially relative to the additional growth opportunities within Genmab’s promising R&D pipeline. That potential was on display in Q2 when the company reported positive data for its bispecific antibody Epcoritamab, a new drug being developed with AbbVie to treat lymphoma. Bispecific antibodies are recombinant antibodies aimed at two biological targets simultaneously and are an important emerging technology area. The company expects to report further clinical trial updates later this year for another bispecific antibody it has developed with partner BioNTech. This new drug is expected to treat patients with metastatic or unresectable malignant solid tumors who are not candidates for standard therapy. We believe Genmab is establishing itself as one of the clear leaders in bispecifics, which increases our optimism about the long-term value of the company’s R&D platform.”
6. Takeda Pharmaceutical Company Limited (NYSE:TAK)
Number of Hedge Fund Holders: 12
Takeda Pharmaceutical Company Limited (NYSE:TAK) engages in the research, development, manufacture, marketing, and out-licensing of pharmaceutical products in Japan, the United States, Europe, Canada, Latin America, Russia, the rest of Asia, and internationally. On November 22, Takeda Pharmaceutical Company said that it will help to treat patients suffering from hemophilia A more effectively. A major complication of this therapy is the development with a neutralizing immune reaction in 30% of the patients.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Renaissance Technologies is a leading shareholder in Takeda Pharmaceutical Company Limited (NYSE:TAK) with 2.85 million shares worth more than $36.95 million.
At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $104 million in Takeda Pharmaceutical Company Limited (NYSE:TAK), compared to 11 in the preceding quarter worth $83 million.
In addition to Pfizer Inc. (NYSE:PFE), Eli Lilly and Company (NYSE:LLY), and AbbVie Inc. (NYSE:ABBV), Takeda Pharmaceutical Company Limited (NYSE:TAK) is one of the best immunology stocks to invest in according to elite investors.
5. Xencor, Inc. (NASDAQ:XNCR)
Number of Hedge Fund Holders: 16
Xencor, Inc. (NASDAQ:XNCR) is a clinical-stage biopharmaceutical company that focuses on the discovery and development of engineered monoclonal antibodies and cytokine therapeutics to treat patients with cancer and autoimmune diseases. On November 10, Xencor announced its presentation of data from the first patients in the Phase 2 combination study of vudalimab, a selective PD-1 x CTLA-4 XmAb bispecific antibody, in patients with metastatic castration-resistant prostate cancer at the 37th Annual Meeting of the Society for Immunotherapy of Cancer (SITC) in Boston.
On December 6, Cowen analyst Boris Peaker initiated coverage of Xencor, Inc. (NASDAQ:XNCR) stock with an Outperform rating without a price target, noting that the company’s partnered programs have the potential to generate revenue of up to $3 billion over the next decade based on milestone and royalty payments.
Among the hedge funds being tracked by Insider Monkey, San Francisco-based investment firm EcoR1 Capital is a leading shareholder in Xencor, Inc. (NASDAQ:XNCR) with 5.3 million shares worth more than $137 million.
4. Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Number of Hedge Fund Holders: 30
Celldex Therapeutics, Inc. (NASDAQ:CLDX) is a biopharmaceutical company that engages in developing therapeutic monoclonal and bispecific antibodies for the treatment of various diseases. On December 6, Celldex Therapeutics, Inc announced new data from the company’s open-label Phase 1b clinical trial of barzolvolimab in patients with antihistamine refractory chronic inducible urticaria. Barzolvolimab is a humanized monoclonal antibody.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm RA Capital Management is a leading shareholder in Celldex Therapeutics, Inc. (NASDAQ:CLDX) with 2 million shares worth more than $58.3 million.
3. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)
Number of Hedge Fund Holders: 43
Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. On December 1, Regeneron Pharmaceuticals announced new and updated data across its oncology pipeline will be presented at the European Society for Medical Oncology Immuno-Oncology Congress 2022 to be held in early December.
On November 9, Truist analyst Robyn Karnauskas maintained a Buy rating on Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) stock and raised the price target to $856 from $790, highlighting that greater confidence in the stock reflects expectations that high-dose Eylea and its potential approval/launch in August 2023 may offer a longer tail.
At the end of the third quarter of 2022, 43 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), compared to 44 in the preceding quarter worth $1.6 billion.
In its Q3 2022 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) was one of them. Here is what the fund said:
“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN), a major position and a stock we wrote up in our June 2021 letter, has been one of the best-performing stocks in the S&P 500 this year. Alas, it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Before COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”
2. Biogen Inc. (NASDAQ:BIIB)
Number of Hedge Fund Holders: 70
Biogen Inc. (NASDAQ:BIIB) discovers, develops, manufactures, and delivers therapies for treating neurological and neurodegenerative diseases. On October 10, Biogen revealed that the first patient has been dosed in the global clinical study, AMETHYST. The Phase 2/3 study will evaluate the clinical efficacy and assess the safety of litifilimab (also known as BIIB059), a first-in-class, humanized IgG1 monoclonal antibody (mAb) targeting blood dendritic cell antigen 2.
On December 1, Atlantic Equities analyst Steve Chesney maintained a Neutral rating on Biogen Inc. (NASDAQ:BIIB) stock and raised the price target to $295 from $220, noting that lecanemab full data presentation, given the consistency of the efficacy and lack of statistical wrinkles in the reported results, has potential.
Among the hedge funds being tracked by Insider Monkey, Stamford-based investment firm Point72 Asset Management is a leading shareholder in Biogen Inc. (NASDAQ:BIIB) with 1.7 million shares worth more than $448 million.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Biogen Inc. (NASDAQ:BIIB) was one of them. Here is what the fund said:
“Biogen Inc. (NASDAQ:BIIB) was the leading contributor among several biopharma names, boosted by positive, pivotal clinical data for its next-generation Alzheimer’s treatment Lecanemab. In a pivotal trial, the drug proved safe and efficacious in slowing the progression of Alzheimer’s disease.”
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 85
Johnson & Johnson (NYSE:JNJ) researches and develops, manufactures, and sells various products in the healthcare field. On December 5, Johnson & Johnson revealed that it is no longer in the running to acquire Horizon Therapeutics, a rare disease player and immunology disease controller. The firm remains one of the leading immunology firms in the world with revenue from products such as Erleada, Darzalex, Imbruvica, Stelara, Tremfya, Opsumit and Uptravi growing double-digits in the third quarter.
On December 1, Morgan Stanley analyst Terence Flynn maintained an Equal Weight rating on Johnson & Johnson (NYSE:JNJ) stock and raised the price target to $178 from $170, highlighting that the company is separating its Consumer Health segment into an independent company, to be called Kenvue, in the second half of 2023.
Among the hedge funds being tracked by Insider Monkey, Camas, Washington-based firm Fisher Asset Management is a leading shareholder in Johnson & Johnson (NYSE:JNJ) with 5.9 million shares worth more than $967.3 million.
In its Q2 2022 investor letter, Mayar Capital, an asset management firm, highlighted a few stocks and Johnson & Johnson (NYSE:JNJ) was one of them. Here is what the fund said:
“Johnson & Johnson (NYSE:JNJ) is currently our largest position and a long-standing holding. The majority of the group’s sales come from its collection of pharmaceutical franchises, but a large majority (~45%) comes from its collection of medical device businesses and its consumer brands.
Here’s how JNJ make and spends a dollar of revenues: As of 2021, about 55 cents of that dollar comes from its pharmaceutical sales – sales of drugs to pharmacies and distributors – while 30 cents come from the sale of medical devices, such as surgery equipment and orthopaedics. The rest of that dollar in sales comes from sales of JNJ’s consumer brands such as Listerine mouthwash, Nicorette nicotine tablets and Neutrogena cosmetics (…read more)
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Disclosure. None. 10 Best Immunology Stocks to Invest In is originally published on Insider Monkey.
