## Oncology Innovation Reshapes Investment Landscape: Three Emerging Opportunities in Cancer Treatment

The pharmaceutical industry is experiencing a transformative phase driven by groundbreaking advances in cancer treatment. Traditional approaches like chemotherapy and radiation are being complemented—and in some cases replaced—by cutting-edge therapeutic modalities that leverage immunology, genetic precision and artificial intelligence. This shift is creating compelling investment opportunities for those positioned early.

### The Market Foundation: Why Cancer Treatment Investment is Accelerating

Cancer prevalence continues to rise globally, with demographic trends and lifestyle factors driving sustained demand. The American Cancer Society projects over 2 million new cancer cases in the United States during 2025, alongside more than 618,000 cancer-related deaths. Aging populations worldwide are amplifying this pattern, translating to robust healthcare spending growth in the oncology sector.

Simultaneously, scientific breakthroughs are redefining what's possible. Checkpoint inhibitors, CAR-T cell therapies, therapeutic vaccines and oncolytic viruses now harness patients' own immune systems to attack tumors with unprecedented specificity. Targeted therapies address molecular vulnerabilities unique to individual cancers, while personalized cancer vaccines represent a quantum leap in precision medicine. Genomic sequencing, machine learning and AI are accelerating discovery timelines, enabling earlier diagnoses and smarter patient matching to therapies.

These dual forces—rising patient populations and expanding therapeutic arsenals—are compelling major pharmaceutical companies and innovative biotech firms to aggressively expand their oncology portfolios. The result is a sector well-positioned for sustained growth and innovation.

### Foghorn Therapeutics: Precision Targeting of Chromatin Vulnerabilities

Precision oncology has entered a new frontier with companies developing therapies that exploit specific genetic mutations. Foghorn Therapeutics exemplifies this approach through its proprietary Gene Traffic Control platform, which identifies and targets genetically driven vulnerabilities within chromatin regulation systems.

The company's cornerstone partnership with Eli Lilly centers on FHD-909, a first-in-class SMARCA2 inhibitor currently in phase I development for SMARCA4-mutated cancers, particularly non-small cell lung cancer (NSCLC). Preclinical work has demonstrated significant anti-tumor activity across multiple SMARCA4-mutant lung models. Initial clinical data is expected in 2026. This addresses a substantial unmet medical need: SMARCA4 mutations are oncogenic drivers with no approved targeted therapies currently available.

Beyond this lead program, Foghorn's wholly-owned preclinical pipeline includes selective degrader programs targeting CBP, EP300 and ARID1B genes—each representing distinct therapeutic opportunities. The collaboration model with Lilly de-risks development while providing validation of the platform's approach. Foghorn carries a Zacks Rank of 2 (Buy).

### ImmunityBio: Rapid Commercialization of IL-15 Innovation

ImmunityBio has achieved a notable milestone with regulatory approvals for Anktiva, its first-in-class IL-15 agonist complex developed to overcome cancer's immune evasion strategies. Approved in April 2024 for BCG-unresponsive non-muscle invasive bladder cancer in the United States when combined with BCG therapy, Anktiva is demonstrating exceptional market reception.

The numbers tell a compelling story. Year-to-date sales have reached $74.7 million with volume growth accelerating at 467%—an exceptional trajectory for a recently launched oncology agent. The European Medicines Agency recently recommended conditional marketing authorization, signaling international expansion opportunities ahead.

What makes Anktiva particularly valuable is its versatility. Beyond bladder cancer, ImmunityBio is actively evaluating the drug in combination protocols for non-small cell lung cancer, glioblastoma and non-Hodgkin lymphoma. In NSCLC studies, Anktiva has demonstrated the ability to reverse lymphopenia—a cancer-induced immune suppression—while extending overall survival. Glioblastoma studies show strong disease control outcomes. This pipeline expansion suggests the blockbuster potential extends far beyond initial indications. ImmunityBio carries a Zacks Rank of 2 (Buy).

### Johnson & Johnson: Established Dominance with Accelerating Pipeline Momentum

J&J remains the category leader in oncology investment and execution. Its oncology division accounts for approximately 27% of total company revenues and is itself a massive business unit. During the first nine months of the current year, oncology sales climbed 20.6% operationally to $18.52 billion, driven by market expansion and significant share gains.

The growth engine rests on proven franchises like Darzalex (multiple myeloma) and Erleada (prostate cancer), complemented by newer agents including Carvykti, Tecvayli, Talvey, Rybrevant and Lazcluze that have achieved rapid market uptake. More impressively, J&J's pipeline has entered a high-velocity phase. Eight proof-of-concept readouts in recent periods have advanced candidates into late-stage pivotal trials across the portfolio, particularly in colorectal and head-and-neck cancers. Successful outcomes could meaningfully expand the addressable market.

Strategic acquisitions amplify this trajectory. Last month's announced acquisition of Halda Therapeutics strengthens J&J's prostate cancer capabilities—a therapeutic area where the company already commands significant resources through existing agents like Zytiga and Akeega. Management guidance pegs oncology sales reaching $50 billion by 2030, reflecting confidence in both pipeline progression and market demand.

J&J carries a Zacks Rank of 2 (Buy), reflecting its dual profile as a stable dividend-paying large-cap with meaningful oncology growth embedded in its valuation.

### Investment Thesis: Why Now Matters

The advances in cancer treatment are not theoretical or distant. Regulatory approvals are accelerating, clinical data continues to validate new mechanisms, and commercialization is ramping at unprecedented pace. For investors seeking exposure to this structural shift, the pharmaceutical companies driving innovation—whether through scale like J&J or specialized focus like Foghorn and ImmunityBio—offer differentiated entry points depending on risk tolerance and time horizon.

The oncology sector remains one of healthcare's most durable and attractive segments for long-term capital deployment, supported by innovation momentum, favorable reimbursement economics and the inevitable expansion of treatment-eligible patient populations worldwide.