October is Here—And You Know What That Means…

Breast Cancer Awareness Month shines a spotlight on the ongoing battle against this widespread disease. But beyond raising awareness, there are significant wins in the oncology space that deserve attention. The fight against breast cancer is seeing breakthroughs, and the potential for growth in the market is immense.

The global breast cancer therapy market is expected to more than double—from $30.9 billion in 2023 to $63.13 billion by 2032, with a CAGR of 8.5%. As demand for innovative treatments rises, so do the opportunities for investors looking to tap into this rapidly expanding market.

The focus is shifting from conventional therapies to advanced options like precision medicine and immunotherapy, offering better outcomes for patients. With the continued push for progress, the financial potential in this sector is as promising as the medical breakthroughs themselves.

Highlights - American Cancer Society Breast Cancer Facts & Figures 2024-2025:

• 1 in 8 Women Diagnosed: Approximately 1 in 8 U.S. women (13.1%) will be diagnosed with invasive breast cancer, and 1 in 43 (2.3%) will die from the disease.
  
  
• 310,720 New Cases in 2024: In 2024, it's estimated that 310,720 new invasive breast cancer cases will be diagnosed among women in the U.S., with an additional 56,500 cases of ductal carcinoma in situ​.
  
  
• Mortality Rates Falling: Breast cancer mortality rates have dropped by 44% since 1989 due to early detection and advances in treatment, resulting in approximately 517,900 deaths being averted​.
  
  
• Disparities in Outcomes: Black women, while having 5% lower breast cancer incidence than White women, face a 38% higher mortality rate​.

FDA Approvals Fueling Stock Momentum

In 2024, FDA approvals have been accelerating breakthroughs in breast cancer treatments, driving market momentum in the oncology space.

This year, several critical therapies have been approved, including drugs that target specific genetic mutations and offer more personalized treatment options. These rapid approvals are giving biotech a significant boost as more therapies enter the market faster than ever before.

For example, recent approvals now offer enhanced outcomes for patients at high risk of recurrence. As these new therapies reach the market, investor interest is surging, especially as these treatments open new revenue streams in a rapidly growing sector.

The ripple effect of these approvals is clear: stocks in breast cancer oncology are seeing major growth. In particular, PINK, the Simplify Health Care ETF, has been a standout performer, rising nearly 20% year-to-date in 2024.

This ETF is unique in its approach, donating all net profits to support breast cancer research through Susan G. Komen. As more groundbreaking treatments get FDA approval, the market potential continues to expand, offering both impactful and profitable opportunities for investors​.

M&A in Oncology: Big Pharma’s Rush to Secure Breast Cancer Breakthroughs

The breast cancer therapy sector is buzzing with mergers and acquisitions (M&A) as larger pharmaceutical companies aggressively acquire smaller biotech firms to secure innovative treatments.

This surge in M&A activity has been driven by Big Pharma's desire to bolster their oncology pipelines, and often larger pharma players are keen to grab smaller biotech firms with promising therapies, especially those targeting breast cancer. In 2024, we've seen key deals that reflect this trend.

For example the recent $850 million Big Pharma acquisition of a company that signalled a double down on breast cancer for the acquired company’s CDK Inhibitors.

Another oral CDK inhibitor was acquired in July for $20 million, with plans to take it to a new breast cancer trial.

Or when in August a California-based biotech company acquiring three clinical-stage masked T-cell engagers (TCEs) platform to treat cancer for $100 million from another Big Pharma company.

There was also the UK-based breast cancer tech manufacturer acquired in April for $310 million.

Or at the beginning of the year, another Big Pharma acquisition for approximately $2 billion of a company advancing next generation antibody drug conjugates (ADC) to transform the treatment of cancer, including a proprietary ADC targeting human epidermal growth factor receptor 2 (HER2) for metastatic HER2+ breast cancer.

These acquisitions often result in significant stock surges for the acquired companies, creating prime opportunities for investors to capitalize on smaller biotech firms that could be the next takeover target.

Investors looking to benefit from this trend should keep an eye on small to mid-sized biotech companies working on breakthrough therapies. With oncology continuing to be a focal point for M&A, the potential for stock value increases remains strong.