We recently published a list of 10 Best Immunology Stocks To Buy Now. In this article, we are going to take a look at where Merck & Co., Inc. (NYSE:MRK) stands against other best immunology stocks to buy now.

The Growing Market for Immune System Treatments

Immunology is a rapidly advancing field with significant potential for growth, especially in the realm of biotech and pharmaceutical companies. As the global demand for innovative treatments for autoimmune diseases, cancer immunotherapies, and vaccines continues to rise, immunology stocks present lucrative investment opportunities. The market for immunotherapy medications is expected to rise at a high pace, from $240 billion in 2023 to $1.3 trillion in 2033. The rise in chronic illnesses like infections, autoimmune diseases, and various forms of cancer worldwide is what is causing the surge.

The prevalence of cancer in particular is rising worldwide. In its 2024 Global Cancer Statistics report, the American Cancer Society has brought attention to the rising global cancer burden. About 9.7 million individuals lost their lives to cancer in 2022 alone, while an estimated 20 million new cases were identified. About 35 million new cases of cancer are predicted to occur annually by 2050, increasing the need for cutting-edge therapies like immunotherapy.

Immunotherapy is a viable substitute for conventional treatments, and as research progresses, its uses are growing. It can be used alone or in conjunction with chemotherapy or other treatments for a variety of cancer types. A form of non-specific immunotherapy called immunomodulating drugs aids in enhancing the body’s immune system’s capacity to identify and combat cancer cells.

Investments and Advancements in Immunotherapy Treatments

Leading pharmaceutical companies are also making significant investments in research and development to increase the variety of immunotherapy medications available due to the rising demand for treatments. These consist of monoclonal antibodies, CAR-T cell treatments, and immune checkpoint inhibitors. Immunotherapy is being used in novel ways and is poised to transform cancer treatment and other medical fields by combining several therapies and customizing care for each patient.

Medical breakthroughs and regulatory approvals, especially in the US, propelled North America to the top of the worldwide immunotherapy medication market in 2023, accounting for about 48.19% of total revenue. The region’s expertise in cutting-edge treatments including tumor-agnostic medicines is highlighted by the FDA’s approval of immunotherapy for tumors with particular genetic features, regardless of origin.

In 2024, there will likely be more than 2 million new instances of cancer in the US, which will increase demand for efficient therapies like immunotherapy. To provide patients with incurable malignancies like lymphoma and B-cell leukemia hope, groups like Canada’s National Research Council are also creating novel immunotherapies.

Our Methodology

For this article, we selected the top 10 holdings from the iShares Genomics Immunology and Healthcare ETF. These immunology stocks were then ranked in ascending order based on the number of hedge fund holders as of Q4 2024.

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).

A close-up of a person's hand holding a bottle of pharmaceuticals.

Merck and Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) tops our list for being the best immunology stock. It is a global pharmaceutical company focused on developing innovative medicines, vaccines, and animal health products. It specializes in cancer, infectious diseases, and immune-mediated inflammatory disorders.

Merck & Co., Inc. (NYSE:MRK) is investing heavily in immunology research to develop novel treatments for autoimmune diseases, focusing on targets like TL1A, IL-2, and CD30L1, while exploring biomarkers to identify responsive patients and developing precise immune modulation methods.

Merck & Co., Inc. (NYSE:MRK) is pursuing therapies for conditions such as multiple sclerosis, systemic lupus erythematosus, and arthritis, targeting both innate and adaptive immune components. The company has made strategic acquisitions, including Prometheus Biosciences for $10.8 billion, and formed partnerships with Curon Biopharmaceutical and Culmination Bio to expand its immunology pipeline. Merck embraces precision medicine and leverages data from Prometheus and applies its oncology expertise to inflammatory bowel disease. Their pipeline aims to transform treatments for chronic conditions and autoimmune disorders, advancing first-in-class therapies through internal and external collaborations.

Merck & Co., Inc. (NYSE:MRK) has received European Commission conditional approval for WELIREG (belzutifan), the first oral HIF-2α inhibitor in the EU, for treating adult patients with von Hippel-Lindau (VHL) disease and advanced clear cell renal cell carcinoma. Despite some challenges, such as halting shipments of its HPV vaccine Gardasil to China until mid-2025, the company continues to perform well. Strong demand for its innovative portfolio, including the cancer drug Keytruda and the newly launched Winrevair for pulmonary arterial hypertension, is driving revenue growth.

GreensKeeper Asset Management, an investment management company, released its Q3 investor letter. Here is what the fund said:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”

Overall, MRK ranks 1st on our list of best immunology stocks to buy now. While we acknowledge the potential of MRK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.