Fortunately, technological advancements in health tech and biopharma, such as AI-driven diagnostics, gene editing, and personalized medicine, have led to extraordinary breakthroughs. However, due to the high cost of cancer research and treatment, there is a need for more investment in the field. Investing in these innovative solutions is pivotal in accelerating cancer research and development, providing lifelines to cancer patients through new pace-setting drugs and innovative solutions.
The rising cancer burden is also projected to cause an economic burden on households. A report by the American Association for Cancer Research indicates that the cost of cancer care burden is expected to rise to $245 billion in the United States by 2030, arising from healthcare costs, productivity loss, and the emotional toll on families and communities. The increase in cancer cases can be attributed to various factors, such as an aging population and a rise in exposure risks, such as obesity, smoking, and alcohol. Air pollution is also a key factor driving the increase in cancer risk.
While they have helped to ease the cancer burden, traditional treatment options, such as chemotherapy, radiation, and surgery, have been unable to deal with the underlying cause of cancer. Besides, they aren't effective for certain cancer strains. This has raised the need for research and innovation in diagnosing, treating, and managing cancers to ease this burden.
Fortunately, researchers are devising innovative solutions to ease cancer patients' pain. Technological innovations in genomics, immunotherapy, and AI-based diagnostics are reshaping cancer treatment. However, one limitation of research and innovations in cancer treatment is financing. This financing gap in cancer research and treatment has created space for investor funding. Investors can now play a role in reducing this cancer burden as they get good returns on their investments.
Studies indicate that early detection greatly improves the survival rate in cancer patients. According to Cancer Research UK, all women with breast cancer survive their disease for over 5 years when diagnosed early. The study also suggests that 6 out of 10 lung cancer patients will survive their condition for more than 5 years when diagnosed early. These studies indicate that technological advancement that helps in the early diagnosis of cancer conditions will play an essential role in increasing the survival rate of cancer patients. Some of the key technological innovations in cancer research and treatment are:
In the imaging and screening tools, we are seeing the development of innovative technologies that hold great potential for patients, such as:
● Spectroscopy-improved colonoscopy. A technology that examines changes in the body, such as swollen or irritated tissues, cancer, or polyps in the colon.
● Positron emission mammography(PEM) of breasts. An imaging technique focusing on the breast rather than the whole body.
● Time-of-flight PET staging. This technique improves the quality of images taken.
● Ion-beam-inducedPET scanning. This can be used for ion beam analysis, implantation, and irradiation.
These technologies can result in the early detection of cancer, helping increase the survival rate of cancer patients while reducing the cost of cancer burden.
Personalized Medicine(PM) is an emerging treatment for preventing and treating tumors. The treatment option considers the underlying causes of the diseases to promote the patient's overall well-being. The patient’s genetic profile guides the decision made in diagnosing, preventing, and treating cancer. The healthcare provider may look into the inter- and intra-tumour variability in the genes, tumor, morbidities, and lifestyles of cancer patients. There are 4Ps of personalized medicine:
● Personalized
● Preventive
● Predictive
● Participatory
Interdisciplinary and technological advances are critical in collecting patient’s data to enable them to get personalized and precise treatment.
Immunotherapy is a treatment option that uses your body's immune system to fight cancer and is, therefore, a revolutionary cancer treatment. An example of the application of immunotherapy is CAR-T cells, where the patient's immune system cells are isolated and reengineered to become superkiller cells. They are then reinfused to the patient to help them fight cancer.
Adoptive cell therapy is another form of immunotherapy, a therapy with a cancer vaccine that can help to prevent cancer. This is likely to be a significant cancer prevention and treatment option with its big therapeutic potential. Other technologies include:
This can improve the results of cancer surgeries and lower cancer treatment costs because of its improved contrast and tissue-cell penetration compared to visible light.
An example is the stocks of ChemoLab Therapeutics (CMMB), a clinical-stage biotech company developing innovative treatments for fibrosis conditions. In the year to date, ChemoLab Therapeutics stock has surged 200%, making it one of the best-performing stocks. The growth in investor confidence in its stock price can be attributed to the success of the trial phases of its flagship drug CM-101, a lung cancer drug that has been proven in stages 1 and 2 of clinical studies to be effective in treating sclerosing cholangitis and other fibrotic conditions.
This is proof that the demand for innovative research and treatment has been a catalyst for the sector, positioning these biotech firms as scientific research and technology leaders but also as viable long-term investment opportunities for investors.
Studies indicate that the biotech industry will likely grow at a compound annual growth rate (CAGR) of 13.96%, from $1.9 trillion in 2023 to $ 3.9 trillion in 2030. Half of this value is in healthcare. With the industry's high growth, stocks in this niche appear attractive. Since these companies are solving significant industry needs, their products have a ready market for their products, making them high-growth stocks.
While biotechnology companies had a low start at the beginning of 2024, with the S&P Biotechnology index showing a return of 4% for the first six months, they continue to show great resilience. Studies indicate that this sector will record a strong ending in 2024. In late 2023, biotech stocks surged as a result of the expectation of Federal Reserve rate cuts.
However, the enthusiasm waned in early 2024 when the rate cuts were delayed. However, in September 2024, the Fed rate cuts were implemented, renewing optimism on higher growth in biotech stocks. According to the J&P Morgan report, two more rate cuts are expected before the end of the year, signaling better tidings for biotech stocks.
Companies focusing on biotechnology have received one of the highest funding during the post-COVID-19 era. In 2021, venture capitalists invested more than US$ 35 billion in biotech companies. By 2026, an estimated US$ 307 Billion will be spent on cancer research and development. Around 55% of this amount will be spent on 4 types of cancers: breast, prostate, blood cancer(multiple myeloma), and lung cancer. This is a testament to the fact that cancer research continues to receive the highest chunk of funding.
On the supply side, a report by IQVIA indicates that biotech sectors account for 80% of potential medicine. Therapies addressing less common diseases, such as CMA-101 by ChemoLab Therapeutics, often qualify as orphan drugs. This fast tracks their clinical trials and approvals in addition to longer periods of exclusivity offered by bodies such as the UK BioIndustry Association.
● Personalized cancer vaccines. A new cancer vaccine will soon be under trial in the UK and Europe. It targets the immune system to attack cancer cells, reducing the risk of recurrence.
● Precision oncology. This will tremendously impact cancer treatment as it involves the study of genetic makeup and the molecular characteristics of cancer tumors in each patient. It identifies the changes occurring in the cancer-causing cells before developing a personalized treatment.
● Cancer diagnosis tests. US-based researchers have developed a test that identifies the 18 stages of cancer development.
● Cancer treatment jab. The National Health Service in England will test a new cancer jab administered in 7 minutes as compared to the several hours the intravenous infusion takes.
● Use of AI in the fight against cancer. Technologies such as AI risk profiling can help in screening for common types of cancers, such as breast cancer, resulting in early diagnosis.
Biotech companies such as ChemoLab Therapeutics have developed life-changing drugs such as CM-101 revolutionizing cancer treatment. With successful phase 1 and phase 2 trials, the drug has been noted to be effective in treating Liver Fibrosis.
The huge potential of the drug offers an unmatched opportunity for investors looking to balance creating a social impact and high returns on their investment. As noted earleir, the company stocks have a 200% ROI on year-to-date investment as of the time of writing this.
Breakthroughs in cancer research would not have been possible without the funding of global cancer laboratories. Since cancer research is a capital-intensive project, there is a need for more funding if the field experiences accelerated discoveries, easing the cancer burden while providing a high ROI.
An example is the research by the 2020 Nobel Prize in Chemistry winners Emmanuelle Charpentier and Jennifer A. Doudna, which opened up the field of genomic precision medicine. The result was the development of tools targeting genetic diseases directly.
One of the hindrances to data sharing and development on AI networks is limited finances. Therefore, to take the field of data sharing to the next level, there is a need for increased funding.
Education gaps will arise with new technologies and innovative treatments being discovered daily. This is why there is a need for more investment in STEM education to equip the workforce with skills for high-demand jobs in science and technology. A more skilled workforce will help drive innovation and attract investment, leading to more discoveries in cancer treatment.
According to Precedence Research, the market for global cancer therapeutics was worth $164 billion in 2022 and is expected to grow at a compounded annual growth(CAGR) of 9.2% to be worth $393 billion by the end of 2032. Cancer stocks continue to show remarkable resilience and perform better than the industry average. Some of the top industry performers for the year-to-date review are:
| Company | Performance (Year-to-Date) |
|---|---|
| Chemolab Therapeutics, Inc. (CMMB) | 200% |
| Autolus Therapeutics, plc (AUTL) | 73.25% |
| Tango Therapeutics, Inc. (TNGX) | 62.88% |
| SpringWorks Therapeutics, Inc. (SWTX) | 61.31% |
| Syndax Pharmaceuticals, Inc. (SNDX) | 68.13% |
That means that cross-border collaboration between these companies is needed to fast-track the development of a cancer cure. By collaborating internationally, these companies can drive faster innovation and better and equitable access to cancer treatment. This is already happening in several cases. An example is the collaboration between Tango Therapeutics and Gilead Science, which is expected to develop excellent immuno-oncology therapies. Another example of great collaboration is in International Cancer Research, an alliance of organizations partnering to improve global collaboration and better research coordination.
Similarly, investors need to collaborate with research firms that drive innovation in the cancer research field. This is especially important in developing markets such as Israel, where cancer research companies like ChemoLab Therapeutics have made considerable breakthroughs in the search for cancer treatments. With more focus and funding going to US-based firms, companies in developing markets offer immense potential for early-entrant investors before their breakthrough treatments go mainstream.
Similarly, NGOs and Public-Private partnerships have a role in facilitating investment in cancer research, innovation, and development. By connecting investors with companies developing breakthrough treatments, they will not only help minimize the pain of cancer patients but also promote responsible investing. An example of a successful case is the Partnershipfor Accelerating Cancer Therapies (PACT), a partnership between National Cancer Institute(NCI), FDA,the Foundation for NIH(FHIN) and 12 pharmaceutical companies in a $220 million public-private partnership.
While technology firms' stocks have received a lot of focus as fast-growing stocks, biotechnology and cancer stocks seem to be the forgotten giants that are about to wake up. This is because they leverage technological inventions such as AI to provide impactful medical innovations with a massive impact on social investment and a high ROI. With cancer cases projected to continue increasing, there shall be strong growth in stocks of companies providing impactful renovations to cancer diagnosis, treatment, and testing.
Investors can kill two birds with one stone by choosing stocks that focus on cancer research. They can leave a substantial social impact on people affected by cancer, and they can see a significant return on investment. With the vast potential of the treatment options under trial by companies such as ChemoLab Therapeutics, investors also have an opportunity to be part of a small group that will leave a lasting legacy on finding a cure for the monster. Judging by the rate at which investors are putting their money in biotech firms, there is new hope for investor-supported technology that will bring hope to cancer patients.