New Cancer Treatments Could Heat Up Market
The pharmaceutical industry has been abuzz in the past month over new developments in cancer treatment drugs. In particular, immunotherapy is attracting the attention of big name investors, including Michael Milken and George Soros, and competing drug makers. Bristol-Meyers Squibb recently introduced two new immunotherapy drugs, Yervoy and Opdivo, which are expected to generate big gains for the company. Estimates predict that the two treatments alone could generate more than $8 billion in added annual revenue by 2020. Last year the company reported total revenues of $15.9 billion.
Competitors are also trying to get a piece of the action, with similar cancer treatment drugs under development. Juno Therapeutics, Kite Pharma and Bluebird Bio all saw recent share value increases as investors anticipate growing potential in this market. Standard & Poor’s (S&P) has also taken notice. The ratings agency listed cancer immunotherapy as one of the top 10 prospects for the pharmaceutical industry in 2015.