Big Pharma's Cancer Push Sends Takeover Buzz into Overdrive

Pfizer, Merck, and Amgen are doubling down on cancer treatments, sending takeover buzz around smaller oncology companies like ImmunityBio (IBRX) and Sellas Life Sciences (SLS) into overdrive.

The three pharmaceutical giants outlined plans to expand their cancer portfolios during their recent earnings calls. Pfizer's Seagen portfolio grew 21% in the U.S., excluding a year-earlier stocking benefit, while Padcev-Keytruda cut the risk of death by 35% in a bladder-cancer study.

ImmunityBio's Anktiva revenue jumped 92% to $50.7 million as the company pursued a broader U.S. bladder-cancer label. Sellas' Phase 3 Regal trial is testing GPS as maintenance therapy for acute myeloid leukemia (AML), with 78 of the required 80 events recorded in the Regal trial.

The takeover buzz around IBRX and SLS has retail traders speculating about potential buyouts, with one trader predicting that GPS and SLS009 would generate billions of dollars in sales over the next decade. Another user speculated that the stock could fall to $1 before 'some Big Pharma' stepped in to acquire the company.

The pharmaceutical giants are expanding their cancer portfolios through various means, including antibody-drug conjugates (ADCs) and T-cell engagers. Merck is preparing for life beyond Keytruda, which generated $8.4 billion in quarterly sales, up 4%.