Investors Guide to Immuno-Oncology

THE TD COWEN INSIGHT

This report provides a detailed overview of immuno-oncology (IO) therapies that are relevant to health care investors. It summarizes the commercial prospects for:

• Approved Drugs
• Major completed and ongoing trials of established IO targets
• Important programs in novel IO targets
• Performance of companies in the IO space
• Recent M&A transactions

We discuss the wide breadth of the IO space based on therapeutic targets. In addition, we cover approved and development-stage therapies with notable catalysts and relevant historical data.

INVESTMENT OPPORTUNITIES FOR IMMUNO-ONCOLOGY THERAPIES

Oncology is the largest driver of growth in the biopharmaceutical industry. IO therapies are one of the largest drug classes within oncology with a wide range of investment opportunities. Opportunities range from approved and established drugs to early-stage development.

Fundamentally we believe that using the immune system to kill tumors is the most promising approach in curing cancer. IO has now become a standard of care in many tumor types, and we anticipate many more approvals in the future.

IMMUNO-ONCOLOGY MARKET FORECAST

Based on 19 tumor types and 11 companies/partnerships, we estimate worldwide oncology sales to reach ~$271B. There is room for upside from additional tumor types such as gastric, pancreatic, and other heme malignancies. Positive outcomes for individual trials, and particularly for novel mechanisms, will likely be significant catalysts for multiple stocks.

EXPECTED CATALYSTS

Notable clinical activity has been reported for LAG-3, with first inhibitor, Opdualag (PD-1xLAG-3), approved in 2022. Interest in TIGIT renewed with SKYSCRAPER-01 interim OS data.  Positive outcomes for individual trials, and particularly for novel mechanisms, will likely be significant catalysts for multiple stocks.